The hospitality sector, through the platform Together with the Hospitality Industry (composed of FIAB, Hostelry of Spain, and AECOC) has asked the autonomous communities and the Minister Reyes Maroto, to urgently approve the Plan to Support the Hospitality Industry announced by the Minister last week. The sector has asked that this plan include direct aid to the sector to the value of $10.5 billion (€8.5 billion). The objective, according to the employers, is to be able to save one million jobs.
The hotel and catering sector in Spain represents 6.2% of the country’s GDP, employs 1.7 million people, and contributes around $20.7 billion (€17.5 billion) to the state coffers, according to data for 2019.
Due to the crisis, it is facing an unprecedented fall since months ago. To date, more than 65,000 hotel and catering businesses have closed, more than 350,000 jobs have disappeared and turnover in the sector has fallen by more than 50% compared to the previous year. To all this must be added the consequences on the more than 30,000 companies associated with the hotel industry, whose combined turnover is about 20% of national GDP.
Read more about the hospitality sector in Spain and how it was affected by the corona crisis with the Born2Invest mobile app. Our companion app brings you the latest business news in the world.
Direct aid from the Government is needed
The sector estimates that $10.5 billion (€8.5 billion) would be needed to stop this collapse, which, if no support measures are taken, could lead to the loss of more than 1 million jobs and the disappearance of a third of the hotel establishments (100,000 establishments). “With this amount, a very considerable impact on the public coffers could be prevented in terms of a reduction in the collection of VAT, Income Tax, Special Taxes, Corporate Tax and social security contributions,” assured the Spanish hotel and catering employers.
The hotel and catering establishments reported that “they have been affected by total closures for months and have been making efforts to apply the restrictive health measures without any specific economic support”. All this in spite of the fact that, according to the latest reports from the Ministry of Health, less than 3.3% of the accumulated infections in Spain since May of this year occur in bars and restaurants.
Along with his request, the platform has already sent urgently to the 17 autonomous communities and the Minister of Industry, Trade and Tourism, Reyes Maroto, a battery of proposed measures that include direct aid, tax measures, economic and labor to be approved under the extraordinary conference announced by the minister.
Spain should join other European countries which have already allocated money to the hospitality sector
The aid plans of European countries to support the sectors affected by the crisis already amount to more than $153.8 billion (€130 billion) in total. These aid plans include direct aid to the hospitality sector approved by countries such as Germany or France.
In particular, Germany has already approved direct aid of more than $11.8 billion (€10 billion) in addition to having approved significant reductions in VAT and measures to encourage demand. France is adding to the specific support for the sector and, in addition to approving consumer vouchers, is also going to grant direct aid amounting to 10,000 euros per establishment. This country has also decided to extend the ERTEs until 2022.
However, in addition, countries such as Greece have approved aid to the affected sectors in tourism for an amount six times greater than that dedicated by Spain, in addition to having added a reduction in VAT in the hotel industry and measures to encourage demand.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in elEconomista.es, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [Esperio Partners Review]
This week, we're here to tell you why affiliate marketing is the meaning of life. And no, that's not a...
Binance: Problems with Paysafe and SEPA – Customers Should Exchange Euro for Tether
It is known that Binance has problems with regulators in several European countries, including Germany. But the fact that support...
Qualitime Plans to Reach a Turnover of €11 Million in 2026
At the moment, Qualitime application has 1,800 registered visitors from the main laboratories in the country and about 400 health...
Peruvian Mining Companies Urged to Focus on Redouble ESG Certification Efforts
Experts recently said that the ESG certification of mining companies with operations in Peru will become increasingly important. They also...
Safeguarding Your Business Funds in Periods of Economic Uncertainty
The dust hasn’t yet settled from the 2023 banking crisis, and another closure could very well be right around the...
Crypto1 week ago
The Crisis in the Crypto Market Impacts Ethereum, Cardano, and Bitcoin
Business2 weeks ago
Inflation in Spain Rises Three Tenths in August (2.6%) Driven by Food (10.5%)
Fintech5 days ago
What Is the Role of Fintech Companies in the Payments Ecosystem
Markets2 weeks ago
Rice Closed Higher Last Week in Response to a Week of Solid Export Sales