A survey of 600 businesses and self-employed indicates that the economic situation in the Balearics - on a scale of one to five - is rated 1.9 (bad or very bad). Twenty-one per cent say that they will issue workers with redundancy notices once ERTE furlough conditions cease.
Two-thirds of businesses say that the fall in sales is the main difficulty they face, followed by payment of taxes and social security (35%). Seventy per cent anticipate there being financial problems in 2021, the president of Pimem, Jordi Mora, noting that businesses with one to nine employees have the greatest difficulties in accessing financial aid.
Presenting the results of the survey on Friday, Mora noted that 44% of businesses intend taking advantage of the three-year extension to the loans with public guarantees that have been granted to deal with the financial consequences of the pandemic.
Specific sectors all point to significant losses. Juan Manuel Ordinas of the Pimem small hotels association said that turnover has fallen by 85% and occupancy, depending on month, by between 67% and 80%. Many owners, he explained, are being forced to offer places at very much cheaper prices. In order to survive, many are considering selling assets. A revival next year, he believed, will "involve increasing prices".
Ramón Reus of the Aevab vehicle rental association pointed out that companies had only billed twenty per cent of their normal summer business, while Eugenia Cusí, president of the Pimem restaurants association, stated that seventy per cent of businesses had billed less than 30% of their 2019 revenue. Maria Gibert of the Aptur holiday rentals association indicated that occupancy fell by 60% in July and by 75% in August.
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Makes you wonder where all these EU billions are being spent.....