The Spanish tourism sector will lose 33,668 million activity if the coronavirus crisis lasts 4 months

Exceltur calls for a second «exceptional» package of measures to be activated with «utmost urgency»

The Spanish tourism sector will lose up to 33,668 million of direct and indirect activity during the current year in the event that current fall rates are maintained and the coronavirus crisis continues for four months, according to estimates by the Alliance for Tourism Excellence (Exceltur).

Exceltur’s calculations contemplate that if these rates of fall and expansion of the virus are maintained for two months, the sector, which represents 12.3% of the Spanish economy, will register a loss of activity that would rise to 18,825 million euros .

«In the face of this catastrophic drop in sales and assuming that it is a conjunctural situation that will last for a few months at the most, tourism companies need instruments of flexibility and proportional adjustment of their costs of much greater magnitude than those announced to avoid what they should Being a conjunctural crisis becomes structural and puts at risk the viability of thousands of companies without distinction of size, «he added.

From the alliance they indicated that a «very relevant» part of the Spanish tourist business fabric is «at stake», made up of 457,000 companies and weighing GDP of 157,000 million euros.

Exceltur described as «meager and insufficient» the battery of measures announced by the Government to counter the impact of the coronavirus on the Spanish economy and the health of citizens.

A SECOND «EXCEPTIONAL» PACKAGE OF MEASURES

For this reason, they are asking for a second package of measures to be activated, «with the utmost urgency» and «exceptionally» for the duration of the spread of the virus, which includes initiatives to facilitate the deferral of the payment of social security contributions at no cost and VAT for all companies and a reduction in the terms of reimbursement of the settlements to be returned from VAT.

The Alliance for Tourism Excellence also demands that the regulations for calculating fractional payments of corporation tax be revised, while making the distribution of work more flexible throughout the year.

It also requests to streamline the management and approval of Temporary Employment Regulation Files (ERTEs) «to the maximum number of days» and also to expand the «meager» endowment of the ICO credit line of 400 million euros, to at least 500 million of euros.

«We are convinced that the firm will to do everything necessary, expressed today by the Prime Minister in favor of recovering the locomotive capacity of the tourism sector, is reflected as soon as possible in new and powerful measures with the greatest impact and immediate impact, such as those proposed «they concluded from the organization.