A hotel on the Costa del Sol. / SUR

Costa del Sol hotels feel the heat as electricity costs spiral

The average daily cost of electricity per guest has risen by 247 per cent compared to 2019, and Aehcos has warned of unsustainable costs afflicting the sector

Pilar Martínez
PILAR MARTÍNEZ Malaga

A report by the Hoteliers Association of the Costa del Sol (Aehcos) has warned of unsustainable costs afflicting the sector. And they say these costs mean that the average daily cost of electricity per guest has risen by 247 per cent compared to 2019.

"In 2019 the hotel sector had a total of 27.5 million overnight stays in the province of Malaga. At that time, the average price per kilowatt per hour was 0.0923 euros. In April 2022 that figure reached an average of 0.2715 euros, with peaks of 0.33 euros per kilowatt per hour, which represents an alarming rise of 247.63%," Aehcos said.

Aehcos warns that "the sector is facing the season with two major stumbling blocks: on the one hand, the rise in costs; on the other, the situation of the Next Generation funds".

Concern is spreading, even though bookings for the summer are going well. There is widespread alarm about the rising electricity costs that are putting profitability in question. The increase in electricity bills for the sector will mean, according to an Aehcos report, a rise estimated at around 68 million euros for this year to a sum of 95 million.

"We are facing a really worrying situation in which the profitability of our sector is at stake", José Luque, Aehcos president, said.

The association also warns that the European Next Generation funds, do not meet the requirements needed for the hotel sector to remain competitive.