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Spanish hoteliers assume sector will not return to normal activity until 2022

Spanish hoteliers assume sector will not return to normal activity until 2022

Randstad, number 1 in human resources in Spain and in the world, produced, through its Randstad research center, a report on the forecasts for the takeover of hospitality entrepreneurs in our country. To do this, it investigated more than 900 companies in the sector spread over the whole territory, in addition to monitoring the hiring situation through the data provided by the Public Employment Service of the State (SEPE). .

Randstad reveals that around 63% of hotel entrepreneurs do not expect a full recovery until the second quarter of 2022. A figure much more pessimistic than that of all companies in the country, of which 81% expect to have already reached this date from levels prior to the onset of the crisis.

Recovery forecasts by sector

Source: Randstad

Hospitality entrepreneurs are significantly more pessimistic than the industry average about picking up pre-crisis levels before next year. Only between 13% and 15% believe they will recover their businesses before the second half of 2021 (compared to 47% for all sectors), and between 41% and 45% plan to do so before next year (the average being 71%) .

“The hospitality sector, one of the main engines of the economy of our country, is also one of the most affected in this situation. The uncertainty about the development of the pandemic, the restrictions and the closures of perimeters cause a deadly scenario for a sector which has not found relief since the brief respite of the summer ”, assures Valentn Bote, director of Randstad Research .

Accommodation and catering: two realities of the hotel industry

According to the Randstad study, the situation is particularly dire for companies dedicated to hosting services: 92% say they have had to stop or significantly reduce their activity, against 30% of all companies. More precisely, 48% of them find their activity greatly reduced, while 44% have directly closed temporarily. In addition, 91% of hosting companies had to go to ERTE, compared to 30% of the average.

The situation is not much better for food and beverage service companies. 79% of these companies continue their activity very affected or stopped, that is to say 47% those which saw their activity decisively decline, and 31% paralyze the activity although temporarily. Regarding ERTE, 71% of these companies still have affected employees.

The Randstad study also took into account the main concerns and measures envisaged by employers that could help the hospitality industry. Most of them (72% in the case of accommodation services, 61% in food and beverage) admit that their main concern is uncertainty about the future of the hotel industry.

Regarding support measures, most companies in the hotel sector opt for direct state aid, tax exemptions and a longer extension of the ERTE.

Hiring in the hospitality industry has fallen 75% since the summer

The pessimism of hoteliers is understandable from the figures shown by employment in the sector. Randstad points out that since July, the number of contracts signed in the hotel industry has fallen by 75.4%. Thus, since this month, the ceiling for hiring in the sector after the outbreak of the pandemic, 176,182 contracts have not been signed, going from 233,752 to 57,570 today.

Evolution of hiring in the hospitality industry over the past year

Source: Randstad

A year ago, the volume of hospitality contracts stood at 290,908 signatures, but the onset of the health crisis has brought it down sharply, registering barely 13,854 contracts in April. In the following months, the indicator rebounded, boosted by the summer and the improvement in sanitary conditions, registering the aforementioned 233,752 in July, the highest figure for the pandemic. But the chain of pandemic waves and the uncertainty due to the restrictions, have meant that, with slight ups and downs, the number of contracts in the hotel industry has recorded a negative trend since the summer, until last February showing the third worst record of the covid era.

Balearic Islands, Galicia and Cantabria lead hiring collapse

The Randstad report finds big differences at the regional level. Compared to July, the Balearic Islands (-92.8%), Galicia (-91.5%) and Cantabria (-88.1%) recorded the largest drops in hiring in the hotel industry. They are followed, with decreases also more pronounced than the national average (-75.4%), Asturias (-87%), Castilla y Len (-84.8%), La Rioja (-83.5%) , the Region of Murcia (-82.6%)), the Valencian Community (-82.4%), Extremadura (-76.9%) and Catalonia (-76.6%).

Already with less marked declines than the average, we find Castilla-La Mancha (-73.9%), Andaluca (-72.2%), Aragn (-70.3%) and Navarra (-67.8%) . The less pronounced drops in hiring in the hotel sector occurred in the Basque Country (-58.4%), the Canary Islands (-45.9%) and the Community of Madrid (-31.3%) .

In absolute terms, Andalusia (with 16,132 contracts), the Community of Madrid (8,928) and Catalonia (6,433) are currently the autonomous regions with the highest volumes of businesses in the hospitality sector. , to the point of representing 54.7%.

Change in hospitality hires at the regional level since the summer

Source: Randstad

At the provincial level, Lugo (-92.7%), Pontevedra (-92.2%), Segovia (-90.8%) and A Corua (-90.6%) recorded the largest drops in hotel rentals compared to the month of July. In contrast, Tenerife (-32.7%), Vizcaya (-43.2%), Zaragoza, Mlaga (both with -45.2%) and Las Palmas (-57.1%) recorded the least decreases. pronounced from all over the country.

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