Spain's hoteliers plead for Government help to avoid pandemic bankruptcies

Tourists arrive in Spain.
Tourists arrive in Spain. / FRANCIS SILVA
  • The president of the Spanish Confederation of Hotels and Tourist Accommodation has warned of the risk of insolvency being faced by many companies in the accommodation sector

The impact of the fifth wave of the coronavirus pandemic in mid-July and the new travel restrictions imposed by key tourist markets have combined to make it a difficult summer for many of Spain’s hoteliers.

So much so that the Spanish Confederation of Hotels and Tourist Accommodation (Cehat), chaired by Jorge Marichal, is urgently demanding Government aid to avoid bankruptcies and insolvency problems of many of the companies in the sector.

Specifically, the confederation is calling for the adoption of fiscal, economic and financial measures to help ensure the survival of tens of thousands of tourism companies.

Marichal warns that “we must act in an urgent and coordinated way to avoid the destruction of jobs and companies in the accommodation sector, and help everyone cope with the consequences of this pandemic and how hard it is affecting tourism.”

He emphasises that the employer's group, which represents 16,000 hotel establishments through its 51 associations spread throughout Spain, currently considers it a priority to establish measures to avoid possible insolvencies and demands urgent solutions for the reduction of fixed costs

Among them, the confederation is calling for more flexibility on bank loans, maintenance of the ERTE furlough scheme until the end of the year, tax breaks on local and regional taxes for a period of one year or until demand in the sector returns.