60% of Mallorca’s bars and restaurant are closing because it’s not feasible for them to operate under the new coronavirus restrictions, according to Pimem President, Eugenia Cusí.
“A high percentage of premises that have closed will choose not to reopen due to lack of liquidity and this will affect the economy, employment and the very future of our sector," states Cusí, who's forecasting a grim future for the Catering Sector in Mallorca and the rest of the Balearic Islands.
“The levels of contagion in Mallorca suggest that establishments won’t open until mid-January, depending on the virus situation and January, February and March will be very hard for everyone,” she added.
Bankruptcy
“We believe that 12% of companies will go bankrupt and as the months go by that number will equal the national average of 30% of premises closing down due to the pandemic,” says Cusí.
“70% of our Sector has recorded a turnover equal to 30% of what they made last year, which shows the level of liquidity our Sector is facing and the problems that lie ahead," she adds. "The pandemic has devastated turnover and the job market in the Balearic Islands because they are so dependent on tourism."