Spain’s tourism industry is in deep trouble

“The season is over and a million jobs are at stake,” says Juan Carlos Higueras from EAE Business School in Madrid, summing up the current situation in Spain.

Officially, Spain currently has the most new infections per 100,000 inhabitants in Europe and travel warnings keep coming in from other countries.

So far only 55,000 Spaniards have officially lost their jobs because many workers are still covered by short-time work programs. But a study by the FEDEA business association predicts that 70% of employees in the tourism sector will lose their jobs.

What a difference an ocean makes

Especially hard hit are the Balearic Islands in the Mediterranean Sea, where tourism contributes 35% of overall income. By comparison, tourism accounts for around 12% of gross domestic product (GDP) in the rest of the country.

For Mallorca things look bleak: “The exaggerated scaremongering of some German media has made the situation worse,” criticizes investor Matthias Meindel, who lives on the island part time.

However, he does not let it get to him or his planned hotel for cyclists in the town of Inca. “We will start the renovations next year,” he told DW.

Increased police patrols and closing beaches and parks at night are meant to curb the spread of the virus. Mask requirements have been in place for a long time. Now even those smoking in public need to keep a distance of two meters.

The locals adhere to the regulations with iron discipline. “You can’t always say that about tourists,” says Meindel. In addition, you can only enter Spain if you have previously filled in an extensive digital questionnaire.

On the other hand, the Canary Islands in the Atlantic Ocean, where youth unemployment is particularly high, currently have an advantage in the short term. Not only are they excluded from most travel warnings because of the low level of COVID-19 infections, now the German tour operator TUI is redirecting some of their Spanish trips there. On top of that, the main tourism season for the Canaries is in winter.

Trying to get by on ‘safe tourism’

It is clear that Spain’s economy has to reinvent itself. The government now wants to work with consultants to mold the entire vacation sector toward a model with fewer visitors yet larger margins.

After the record year 2019 with almost 84 million foreign tourists who left €92 billion ($109 billion) in the country, the industry association Exceltur expects a minus of almost €100 billion in 2020, a hole that is €15.6 billion bigger than previously thought.

The “Safe Tourism” (turismo seguro) quality seal recently issued by the country’s Ministry of Tourism aims to relieve holidaymakers’ fear. It guarantees hygiene protocols and a low risk of infection.

Ruth Ardyla, director of the Castilla-La Mancha tourism office in Madrid

“Under this umbrella in the Castilla-La Mancha region, we primarily promote wine and gastronomy routes, hikes and open-air events,” reports Ruth Ardyla, head of the Madrid tourist office for the autonomous Spanish region whose main attraction is the city of Toledo.

But what Castilla-La Mancha is experiencing on a small scale applies to the whole country: Despite diligent efforts, tourists are staying away. “Previously 40% of our visitors were foreigners, now it is perhaps between 15-20%,” Ardyla told DW, adding that the future was more uncertain than in any other EU country.

Sleepless nights for 2.4 million people

In 2019, almost 2.4 million people worked directly or indirectly in the holiday industry in Spain, an increase of 500,000 new jobs in 10 years. Now, with only a third the number of foreign visitors, it’s increasingly hard to keep them employed.

Therefore, Exceltur demands that a quarter of the promised €140 billion from the European Union flow into their sector. Many want short-time work programs to be extended until the winter season. Exceltur goes even further and demands the programs be extended until Easter 2021.

How that should be financed is unclear, though. According to Banco de Espana, the country’s national debt rose to 110% of GDP in June and could be 120% by the end of the year.

Rebuilding the economy with Africa in mind

While the German lawyer Tim Wirth, who lives in Mallorca, was happy that King Felipe and Prime Minister Pedro Sanchez recently stayed on the island thus generating positive international press, “the sudden panic has now also had a negative impact on the real estate market,” he told DW.

King Felipe and Prime Minister Pedro Sanchez on Mallorca earlier this summer

According to the Spanish property appraisers Tinsa, house prices have fallen by an average of 8.2% on the Balearic and Canary Islands and by 6.1% on the country’s Mediterranean coast since March 2020.

To stop that, the Spanish economist Javier Diaz-Gimenez advises not to lose sight of the rest of the economy and to finally build more energy efficient houses and buildings: “The construction industry is just as important to us as tourism,” he says in an interview with DW.

Spain must therefore look to Africa, where the country can contribute with its world-renowned infrastructure companies like ACS and Ferrovial. “The continent is currently a central topic in my classes,” admits Diaz-Gimenez, who teaches at the IESE business school in Madrid.

Is Reyes Maroto’s ‘Horizonte Africa’ plan an economic chance for Spain?

Reyes Maroto, minister of industry, trade and tourism, has also recognized the potential and has just published her “Horizonte Africa” ​€plan, which is meant to help facilitate the entry of Spanish companies in Africa.

Economist Higueras praises this, because he also strongly believes in the economic future of Spain in Africa: “We are Europe’s bridge to this continent and should not leave the whole business to the French, British, Chinese and Americans.”

Meanwhile, Diaz-Gimenez warns the prime minister about a second lockdown and calls for people to be helped, not companies. “We should not be saving airlines or hotel chains, and certainly not automobile companies. We have to help the unemployed with money and retraining,” he concludes.

• Coronavirus: The consequences for tourism

  First Mediterranean cruise has set sail

  With 2,500 instead of 6,000 passengers, the MSC Grandiosa left the port of Genoa on August 16. Stops on the seven-day voyage include Naples, Palermo and Valletta. Passengers and crew were tested for coronavirus before boarding, and body temperature is to be checked on a daily basis. Rival cruise company Costa will not be offering Mediterranean cruises again until September.

• Coronavirus: The consequences for tourism

  Germany declares most of Spain high-risk area

  Germany’s health and interior ministries have agreed that all of Spain — apart from the Canary Islands — is now a high-risk area due to a surge in cases. Spain said it was closing night clubs across the country. Restaurants, bars and similar venues would need to close by 1 a. m. and would not be allowed to take in new guests after midnight.

• Coronavirus: The consequences for tourism

  Paris is again a high-risk area

  France has declared Paris and the Bouches-du-Rhone department on the Mediterranean coast around Marseille high-risk coronavirus zones. The measure is in response to a sharp rise in COVID-19 infections over the past two weeks.

• Coronavirus: The consequences for tourism

  COVID-19 deals tourism in Berlin a heavy blow

  In the first six months of 2020, 59% fewer tourists came to Berlin than in the previous year. The Statistics Office said on August 10 that 2.7 million guests had visited Berlin, the lowest number since 2004. The slump was even worse for foreign tourists: two thirds stayed away. Since June, the figures have been recovering and are at 30 to 40% of the previous year.

• Coronavirus: The consequences for tourism

  Compulsory COVID-19 tests on entry into Germany

  Anyone entering Germany from a high-risk area must take a coronavirus test from August 8, after an order by Health Minister Jens Spahn. Currently, many countries are classified as risk areas, including the United States and Brazil. In the European Union, Luxembourg, the Belgian region of Antwerp and the Spanish regions of Aragon, Catalonia and Navarre were risk areas as of early August.

• Coronavirus: The consequences for tourism

  Germany lifts travel warning for four Turkish regions

  Germans can again travel to Turkey. The German government has partially lifted the travel warning for the four popular coastal provinces of Antalya, Izmir, Aydin and Mugla. Travelers must be tested for coronavirus before returning to Germany. The costs of between €15 and 30 must be paid by the traveler. Turkey is one of the most popular holiday destinations for Germans.

• Coronavirus: The consequences for tourism

  Setback for cruise holidays

  Norwegian cruise operator Hurtigruten has stopped all cruises on August 3 until further notice after an outbreak of the coronavirus on one of its ships. At least 40 passengers and crew members on the Roald Amundsen tested positive for COVID-19. Meanwhile, German cruise line Aida Cruises has also postponed its planned restart due to the lack of necessary permits.

• Coronavirus: The consequences for tourism

  Nepal reopens Mount Everest for climbers amid COVID-19

  Despite coronavirus uncertainty, Nepal has reopened Mount Everest for the autumn trekking and climbing season. To boost the struggling tourism sector the government will permit international flights to land in the country from August 17. The Himalayan country shut its borders in March just ahead of the busy spring season when hundreds of mountaineers usually flock to the country.

• Coronavirus: The consequences for tourism

  German Foreign Office advises against travel to Barcelona

  On July 28, the German Foreign Office issued an advisory opinion against non-essential tourist trips to the Spanish regions of Aragon, Navarre and Catalonia, citing the high number of COVID-19 infections as well as local restrictions. The Catalan regional government in Barcelona has said it regrets the decision, saying the regional government was acting responsibly while trying to protect lives.

• Coronavirus: The consequences for tourism

  Amsterdam wants fewer weekend visitors

  Concerned over a possible second wave of coronavirus, Amsterdam has requested that tourists not visit the Dutch capital on weekends. Potential day-trippers should come between Monday and Thursday, the city said on July 23. The tourist influx has swelled to such a degree that recommended social distancing of 1.5 meters between people is currently not possible in the city center.

• Coronavirus: The consequences for tourism

  Crowd management in alpine idyll

  In order to manage tourist throngs amid the pandemic, Bavaria’s Economy Minister Hubert Aiwanger is planning a live digital guiding system for visitors. Clogged streets, wild campers and overcrowding on hiking trails in the Alps — this brings popular regions such as Lake Tegernsee (photo) to their limits. The live update system is primarily intended to redirect day-trippers to less full areas.

• Coronavirus: The consequences for tourism

  Eiffel Tower summit open again

  Visitors to Paris can finally visit the top of the Eiffel Tower again — the third level of the world-famous landmark opened on July 15. The number of tickets available is limited, in order to assure social distancing measures between visitors. Distancing is also in effect at the Disneyland Paris amusement park, which is opening its doors again after a four-month obligatory closure.

• Coronavirus: The consequences for tourism

  End of the party

  Due to illegally held parties, Mallorca has ordered the forced closure of restaurants at Ballermann and Magaluf, resort areas visited by German and British tourists. The regulation came into effect on July 15 for two months. The behavior of a few vacationers and local owners should not jeopardize the huge efforts to fight the pandemic, said Balearic Tourism Minister Iago Negueruela.

• Coronavirus: The consequences for tourism

  Stricter face mask rules on Balearic Islands

  On Mallorca and the other Balearic Islands, the regulations for wearing face masks have been tightened. To prevent the spread of the coronavirus, mouth and nose protection must be worn from July 13 in all enclosed public spaces as well as outdoors, whenever it is possible to encounter other people. On the beach, at the pool and during sports, however, masks are still not mandatory.

• Coronavirus: The consequences for tourism

  Flights overshadowed by fear

  Holiday flights within Europe are on the move again, with passengers sitting close together. According to an opinion poll by the International Air Transport Association (IATA), 62% of those questioned are afraid of being infected by passengers in the next seat. This was identified by IATA as the main reason for the decline in willingness to travel, which is now only 45%.

• Coronavirus: The consequences for tourism

  EU relaxes entry restrictions

  Starting from July 1, people from third countries with low infection rates may enter the EU again as regular travelers. These countries are Algeria, Australia, Canada, Georgia, Japan, Morocco, Montenegro, New Zealand, Rwanda, Serbia, South Korea, Thailand, Tunisia and Uruguay. China will only be considered if it also lifts its entry restrictions for Europeans.

• Coronavirus: The consequences for tourism

  COVID-19 test center opened at Frankfurt airport

  A coronavirus test center has been in operation at Frankfurt airport since June 29. Here, passengers both departing and arriving can be tested to avoid quarantine. The standard procedure, in which the results are available as a download within six to eight hours, costs €59. Around 300 tests can be performed per hour.

• Coronavirus: The consequences for tourism

  World famous Alhambra in Granada opens again

  The Alhambra Castle in Granada in southern Spain opened its doors to tourists again on June 17. Initially, only 4,250 visitors were admitted at the same time — only half as many as usual. In addition, masks are mandatory. The Alhambra is considered the most important testimony to Arab architecture in Europe and is a World Heritage site.

• Coronavirus: The consequences for tourism

  ‘Re-open EU’: A website with travel rules for Europe

  Entry regulations, masks, quarantine? The new EU overview website “reopen.europa.eu” provides information on the coronavirus rules of individual EU countries — and in 24 languages. Tourists can enter their destination country on the website and find out about regulations that apply there. So far, the site contains information on 27 EU countries and is to be continuously updated.

• Coronavirus: The consequences for tourism

  Germany’s borders are open again

  During the night of June 15, the federal police ended the border controls that had been introduced three months ago due to the coronavirus crisis. Complete freedom of travel between Germany and its neighboring countries is back in effect. At the same time, the Foreign Office’s travel warnings for 27 European countries ended.

• Coronavirus: The consequences for tourism

  German government extends worldwide travel ban

  The beaches of the world people dream of, like here on Ko Phi Phi in Thailand, will have to do without German tourists. The German government has extended the travel warning for tourists due to the coronavirus pandemic for more than 160 countries outside the EU until August 31. However, exceptions can be made for individual countries where the spread of the virus has been sufficiently contained.

• Coronavirus: The consequences for tourism

  Tourist pilot project launched on Mallorca

  Some 6,000 Germans will be the first foreign tourists to be allowed to travel to the Balearic Islands from June 15. According to Spanish media, the pilot project is intended to test the security precautions at airports and hotels before all of Spain opens its borders on July 1. Germany was chosen because the epidemiological situation there is similar to that on the Balearic Islands.

• Coronavirus: The consequences for tourism

  Italy reopened for Europeans

  Starting on June 3, tourists from Europe have been allowed to enter Italy again, the country that was one of the worst hit by the coronavirus pandemic worldwide. A two-week quarantine for travelers from Europe was no longer required. This should save the travel season. Italians will again be able to move freely throughout the country and travel to other regions.

• Coronavirus: The consequences for tourism

  Aida cancels cruises until end of July

  The 14 cruise ships of the German Rostock-based shipping company Aida Cruises will remain in port until July 31. In many holiday destination countries the regulations for international tourism were still being discussed, the company announced. The Italian shipping company Costa also extended the cruise suspension for its fleet until July 31.

• Coronavirus: The consequences for tourism

  Colosseum and other sights in Italy open again

  Rome’s 2,000-year-old landmark could finally be visited again from June 1, and the Vatican Museums also reopened on that day. Ancient Pompeii, south of Naples at the foot of Mount Vesuvius, welcomed visitors early, but only those from within the country. Foreign tourists had to wait until June 3 to visit the ancient sites.

• Coronavirus: The consequences for tourism

  Tourism on Greek islands restarts

  From May 25, Greece’s islands were accessible again by plane and ferry for domestic tourists. Taverns, bars and cafes reopened nationwide. Ferries were to sell only 50% of their tickets, and taverns were only allowed to occupy half of their tables. The list of countries from which foreign tourists can enter Greece without a two-week quarantine was set to be announced at the end of May.

• Coronavirus: The consequences for tourism

  Austria reopens border to Germany

  The Austrian government has announced that the border with Germany will be opened on June 15. Tourism in Austria has been effectively suspended due to the coronavirus pandemic. On May 29, hotels and other accommodation in Austria will be allowed to reopen. Austrian tourism is heavily dependent on guests from Germany.

• Coronavirus: The consequences for tourism

  Start of the season on the North Sea Islands

  Borkum, Juist (photo) and the other East Frisian islands are happy to be able to greet tourists again, even if it’s a limited surge of visitors. Since May 11, overnight stays in holiday apartments and camping sites throughout Lower Saxony have been allowed again. Holidaymakers must stay at least one week. However, day tourists and hotel overnight stays are still prohibited.

• Coronavirus: The consequences for tourism

  Will travel within Europe soon be possible again?

  Holidaymakers might also be able to travel to the Balearic or Greek Islands in summer. “If there are very few new infections there and the medical care works, one could also think about a summer holiday in those places”, the government’s commissioner for tourism, Thomas Bareiss, told the Tagesspiegel newpaper. Long-distance travel, however, is likely to be canceled this summer.

• Coronavirus: The consequences for tourism

  Holiday season at the Baltic Sea to start

  Mecklenburg-Western Pomerania is the first federal state to reopen to tourists from all over Germany: From May 25th they can again stay in hotels, guest houses and holiday homes. 60 percent of the bed capacity will be released for this purpose. This means that the tourist season can start with the Whitsun holidays in popular holiday regions like the Baltic Sea and the Mecklenburg Lake District.

• Coronavirus: The consequences for tourism

  Germany extends worldwide travel warning

  Germany extended on Wednesday (April 29) its worldwide travel warning due to the coronavirus crisis to at least June 14. The Federal Foreign Office said that “severe and drastic restrictions in international air and travel traffic and worldwide entry restrictions, quarantine measures and restrictions on public life in many countries can still be expected.”

• Coronavirus: The consequences for tourism

  Oktoberfest in Munich canceled

  Oktoberfest has been canceled this year due to the coronavirus pandemic. Bavaria’s premier Markus Söder and Munich Mayor Dieter Reiter announced the decision on April 21.”It pains us, and it is a great pity,” said Söder. But in times of the coronavirus, the danger of infection at the folk festival, which attracts about 6 million visitors annually, would just be too great.

• Coronavirus: The consequences for tourism

  Mallorca worried about the summer

  Hotels, cafes and souvenir shops are closed. It is unusually empty outside the Royal Palace in Palma (picture). The Easter season on the Spanish holiday island of Mallorca has been canceled. The Majorcan hotel association now fears that due to the uncertain situation in the main markets of Germany and Great Britain, some hotels will remain closed even during the peak season.

• Coronavirus: The consequences for tourism

  More Germans brought back from abroad

  By April 5, 205,000 travelers had been brought back to Germany, according to the federal government. Airplanes from Peru and Colombia were the most recent to take off. More than 40,000 Germans however are still stranded abroad. Foreign Minister Heiko Maas said on Twitter. ”We will continue our efforts to find solutions for the travelers who have not yet been able to return.”

• Coronavirus: The consequences for tourism

  A symbol of hope

  A light installation on the Matterhorn in Switzerland is giving a sign of solidarity and hope in the fight against the coronavirus. Encouraging messages are also being projected on to many other tourist landmarks around the world. “Stay safe”, “Stay at home” could be see on Monday evening on the Great Pyramid in Giza near the Egyptian capital Cairo.

• Coronavirus: The consequences for tourism

  Huge repatrition drive

  The German foreign ministry announced on Wednesday (March 25) that, together with tour operators, it had brought back more than 150,000 Germans from abroad. Tour operator TUI added that almost 95 percent of the tourists who were stranded because of the coronavirus pandemic are now back in Germany. They were mainly flown out from Egypt, Spain, Portugal and the Cape Verde Islands.

• Coronavirus: The consequences for tourism

  Africa’s measures to deal with the pandemic

  African countries have also ordered numerous measures to prevent the spread of the coronavirus. South Africa, for example, has banned access to the country for people coming from risk areas. Nigeria is monitoring the temperature of travelers at airports, ports and borders. Cameroon has closed its borders indefinitely.

• Coronavirus: The consequences for tourism

  Australia bans foreign travel

  The Australian government has imposed an indefinite ban on all foreign travel by its citizens. Prime Minister Scott Morrison also called on all Australians who are abroad to return home. A 14-day compulsory quarantine for all people entering the country has already been in place for some time. Here, too, it has become quiet in the cities.

• Coronavirus: The consequences for tourism

  Tourism in Germany comes to a halt

  The coronavirus crisis is impacting travelers and the tourism industry with full force. Several tour operators, including TUI, has canceled trips, and some airlines are shutting down. Germany’s federal and state governments decided that overnight stays should only be used for “necessary and explicitly not for touristic purposes”. Germans are to “no longer take holiday trips at home and abroad”.

• Coronavirus: The consequences for tourism

  EU external borders closed

  The EU has closed its entire external borders for 30 days as from March 17. “All travel between non-European countries and the European Union will be suspended for 30 days,” French President Emmanuel Macron said in a television address on March 16. The Schengen Area, which includes several non-EU countries, also closed its external borders.

• Coronavirus: The consequences for tourism

  Germany brings travelers back home

  More and more countries are sealing their borders, and many flights are canceled. With special flights Lufthansa and its subsidiary Eurowings want to bring up to 6,500 stranded holidaymakers from the Caribbean, the Canary Islands and on Mallorca back to Germany. In Morocco, the German government is assisting German tourists who are stranded there due to their return flights being canceled.

  Author: Andreas Kirchhoff, Susan Bonney-Cox

Article source: https://www.dw.com/en/spain-s-tourism-industry-is-in-deep-trouble/a-54676710?maca=en-rss-en-bus-2091-xml-atom