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Hotel Chains closing earlier than planned

Hotel Riu Concordia, Majorca. | Pere Bota

| Majorca |

The progressive drop in hotel guests in the last two weeks has forced hotel chains in all tourist areas of Majorca to bring forward their closing dates.

“We have tried, but in the end everything went against us keeping hotels open,” said Gabriel Llobera President, Agrupación de Cadenas or ACH.

Chains like Hipotels, BQ, Protur, Zafiro, Viva and Pabisa, Grupotel, Riu and Garden are now rethinking their strategy.

"It is unfeasible to operate a hotel with less than 30 rooms occupied and that’s been happening since the end of August. The ceiling that many chains have set for us is to exceed 65 rooms, because with less than that the costs exceed the income,” said ACH.

Safe Corridors

The Hotel Chains stress that even if safe corridors were established with Germany and the UK it's unlikely to make a difference because the rate of infection is still increasing in European countries.

"We believe that the restrictions are going to get tighter which will undoubtedly affect the entire Tourism Industry in September, October and throughout the low season," says Llobera. “There are some Hotel chains that are waiting for air corridors, but the reality of the situation is gradually sinking in.”

Viva Hotels President, Pedro Pascual, says occupancy in September was forecast to be 50-60% "but the German Government’s advice not to travel to Majorca and the other Balearic islands led to a string of reservation cancellations, which has forced us to make the decision to close the hotels in September.

All Hotel chains in Majorca have already written off this year and are focusing all their efforts on next Easter and the 2021 season.

"Everything depends on whether or not there is a Covid-19 vaccine," says Llobera.

Winter Tourism

Spain’s Foreign Affairs & Cooperation Minister, Arancha González Laya, says Spain is still trying to negotiate safe corridors for the Balearic Islands and Canary Islands with Germany, the UK and the Nordic countries during the winter season, despite the deteriorating epidemiological situation.

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