Exceltur updates losses in tourism: -83,000 M € and 1 M of jobs

Destinations

According to our estimates from 03/15 to 06/30 2020, tourism activity has decreased by 43,460 million euros, compared to 2019, with 1.4 million people affected in their work situation (1.1 million in ERTE and 300,000 unemployed).

The same survey places the drop in billing in the sector at 54% compared to 2019, equivalent to 83,134 million euros.

In this new revised situation, tourism would explain the 57% of the fall in GDP in 2020 (-11.6%) estimated by the Bank of Spain in its latest scenario, and would raise the fall in tourism revenue in foreign currency to 43,975 millions of euros.

For the third quarter anticipates that the fall will reach 28,000 million euros (a 47.6% decrease in activity) and in the fourth will add another 12,000 million (38% decrease), which will cause that at the end of the year there are one million tourist workers unemployed more than at the end of 2019. Exceltur criticizes that tourism “has not been on the political agenda” so, after three and a half months stopped and about to start the late start of the summer, “he barely manages to improve his recovery expectations”. He attributes this to “the multiple uncertainties, restrictions and misleading messages” that in recent weeks have led foreign demand to choose other “more open” countries.

“There has been a lack of consistency to stimulate internal demand, facilitating tourist mobility between autonomous communities in similar phases before the end of the state of alarm,” says Exceltur.

Therefore, it demands a “urgent and very powerful” plan of transversal measures to support tourism -similar to those of France, Italy, Portugal or Greece, among other countries- and a “possible rescue” of the sector by the Government over the next few months, with national and community funds.

That plan should contain, in Exceltur’s opinion, the opening of borders no later than July 1 with the Schengen countries and the United Kingdom, and “as soon as possible” with countries outside the Schengen zone for the long haul.

They also defend the extension of the temporary employment regulation files (ERTE) until December at least; increase the endowment of the ICO line to 20,000 million; suppress the fractional payments and / or minimum advances of the Corporation Tax of 2020, reduction of VAT, and reduction of airport taxes to encourage flights.

At the same time, they request measures of stimulating demand, such as the introduction of vacation bonuses tax deductible or extend the Imserso program to a European level. Finally, Exceltur again asks that a minimum of 25% (35,000 million) of the 140,000 million of European funds for reconstruction is allocated to the reconversion of tourism and to saving the business fabric of the sector. Of the $ 35 billion, 50% should be in direct transfers, not to further finance losses.