The increase in restrictions on travel and family reunions and friends this Christmas, for the new increase in the incidence of covid, will cause the turnover of the hospitality sector in the province of Alicante fell by 60% respecially for the 2019 parties, which will mean that restaurants, cafes, bars, clubs and pubs stop entering about 400 million euros between last weekend, the start of company lunches and dinners, and January 6, with 3,000 temporary workers who will not be hired, according to a report by the hotel management. The situation worsens in the whole of the Valencian Community, where it is expected that in the first two months of 2021 can close around 10,000 establishments.
The Hospitality Industry of Spain – an employer to which the Provincial Hospitality Association belongs – has released a document this week that collects the main data and statistics of the sector, which details the evolution in the Valencian Community in a marked situation by economic crisis derived from the covid pandemic. In 2019, the regional hospitality industry remained above 35,000 establishments and 182,350 people. The level of turnover exceeded 12,700 million euros, which translated into 6.8% of GDP.
This year, the months of almost total inactivity derived from the declaration of state of alarm in March, the subsequent restrictions and the new restrictions as of October, have had a great impact on the sector, with a lethal effect on the economy, both in terms of production and employment and reduction of the business fabric. Hoteliers don’t expect a return to pre-pandemic numbers until late 2021 or early 2022.
The current level of reservations for the Christmas holidays, taking into account the restrictions in force and the possibility that these will be hardened in the next few days, leads to a 60% decrease in turnover compared to the data obtained last Christmas. The forecast is that the restaurants and bars in the Community will stop billing 1,080 million euros, which has an impact on the hiring of personnel, with a drop of 8,000 workers.
On the other hand, the president of the Diputación, Carlos Mazon, yesterday transferred the president of Hosbec, Toni Mayor, the decision to lower the provincial surcharge on the Economic Activities Tax (IAE) in order to alleviate the financial burden of hospitality companies and hotels in the province. During the meeting, held in the Provincial Palace, the president presented the details of the reduction of more than 50% of the IAE surcharge for next year, “an unprecedented measure of the institution to date with which we are going to leave this tax in just 10% of recharge, “advanced Mazón, who stressed that it will help maintain” jobs and cope with the complicated situation that all sectors are going through, but especially tourism.
For the County Council, which currently has a surcharge of 20.5%, it will mean a global reduction of just over 50%, leaving the final quota at 10% for the nearly 9,000 companies in the province that will benefit. Mazon explained that there is a very obvious premise, and that is that the administrations «we cannot tax the Economic Activities Tax on those who are not having economic activity. Our tourism sector and the hotel plant in particular have a serious activity problem generated by the crisis, “said Mazón.
Beach entrepreneurs ask for tax exemptions in Alicante
The Costa Blanca Beach Business Association has asked the Alicante City Council to companies in the sector also benefit from the discounts and exemptions provided for the hospitality industry for the current year and for 2021, as it is one of the most affected economic sectors. The sector is experiencing a disastrous year with accumulated billing drops of over 90%. In addition, the forecasts contemplate a start to the season just as bad as the closing of the current one and it is increasingly evident that the evolution of next summer’s reservations for the tourism sector will recover, hopefully, only a small part of its income due to lack of tourists.
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