The holiday home market in Spain registers losses of 448 million euros due to the coronavirus

The COVID-19 crisis is taking its toll on tourism

Rentalia
Rentalia
27 April 2020, Redaction

The COVID-19 crisis has taken its toll on the Spanish holiday home market, along with so many other economic implications. FEVITUR, La Federación Española de Asociaciones de Viviendas y Apartamentos (the Spanish Federation of Housing and Tourist Apartment Associations) has already recorded losses of 448 million euros and estimates that this figure will reach 2.9 billion euros by the end of 2020. In fact, the Federation estimates an impact of 188 million euros for the Easter period alone, typically one of Spain's busiest weeks for tourism.

FEVITUR considers half of the season to be lost, but expects a staggered start to activity that will allow operations to begin again in June, with an influx of reserves for the last quarter of the year, and which will represent a beginning of recovery for 2021.

An improvement that, in the words of Tolo Gomila, president of FEVITUR, "will be conditioned, to a great extent, by the recovery of the issuing markets, the recovery of confidence in travelling and the recovery of the economic situation".

In this sense, FEVITUR has communicated a package of urgent measures to the government to support the sector and help mitigate the negative effects of this crisis. Among these measures are the temporary moratorium on the collection of local tourist fees for the whole of 2020, the postponement of social security and tax agency payments, as well as the postponement of interim or indirect taxes without surcharges or interest, the speeding up of temporary employment regulation files due to force majeure and enabling funds for the Spanish Autonomous Communities for the promotion of tourism, amongst other measures.

The tourist housing sector has grown exponentially in recent years, becoming a key and valuable player in tourism and the Spanish economy. "We have managed to make our sector strategic for the Spanish economy in terms of offering accommodation in the tourism value chain, responsible for its contribution to the Spanish GDP, exemplary in fiscal transparency and also supportive of its country in the current climate with the actions taken by several associations providing free housing for health care personnel, the military and other sectors that deserve so much help and appreciation from everyone," concludes Tolo Gomila.

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