The Spanish tourism sector loses 18,000 million at Easter due to the coronavirus crisis

Spanish tourist companies register losses of 18,000 million in income at Easter due to the restrictions decreed by the Government to stop the expansion of the coronavirus, according to data from the Business Federation of Territorial Associations of Spanish Travel Agencies (Fetave).

The Easter data offer a «terrifying balance», according to the Federation, with losses that will affect 2.5 million workers in the 400,000 Spanish tourism companies.

Fetave argues that more than 70,000 flights have been canceled, representing the loss of 10 million airline tickets (more than 95% of the Easter forecast). Furthermore, in the hotel environment, more than 15 million hotel nights have been canceled, and in the bars, restaurants and nightlife sector alone, the losses are between 8,000 and 10 billion euros.

Fetave recalled, by way of example, that Germany has granted a credit of 1,800 million euros to TUI to rescue that tour operator, the United Kingdom is providing 700 million to easyJet, and France and the Netherlands are going to provide 6,000 million to the Air France – KLM consortium.

As for Spain, the Federation considers «positive» the announcement of an expansion of another 20,000 million euros for SMEs and self-employed within the line of 100,000 million approved.

However, it has warned that the «catastrophic» losses caused by the cancellation of Easter can lead to the loss of liquidity and the bankruptcy of tens of thousands of tourist companies if the line of the Official Credit Institute (ICO) does not work quickly, «something that does not seem possible if the government does not undertake an in-depth reform of the conditions of access to ICO credits,» according to the Federation.