Hospitality billing fell 50% due to the pandemic
Industry turnover plummets 11.7%, its biggest drop in 11 years
The hospitality billing fell 50% last year due to the pandemic. That is, it was cut in half, with a marked collapse in highly touristy regions, such as the Balearic and Canary Islands. This is reflected in the INE data on the services sector published this Monday.
According to these figures, in the whole of 2020 the turnover of the services sector (includes branches of activity such as hospitality, commerce or transport) it decreased by 15.6%. It is the biggest drop in the historical series, which began in the year 2000 and is broken with six years of growth.
All the branches of activity that make up the services sector closed the year with falls, although some more pronounced, as is the case of the hotel industry, which has seen its turnover cut in half. Regarding employment, has 13% fewer workers, without counting those who are in ERTE situation, according to the INE.
This loss of workers includes those who are not on staff all year but are usually hired to reinforce the summer months, or those with the highest peak of activity, and that this year have not been hired, due to the collapse of tourism.
As the INE recalls, from March to June, during the first general confinement, the opening to the public of non-essential retail stores and establishments, as well as hotels and restaurants, were suspended. “There was an almost total stoppage of the services sector which, although it affected all sectors, it had a significant influence on Hospitality “, he says.
With the de-escalation, “a generalized recovery was observed, which has been maintained for most sectors during the second half of the year”, except for the hotel industry, “whose growing evolution slowed down after the summer, declining again “, says the INE.
The industry also suffered an unprecedented collapse, 11.7% in 2020 compared to 2019, its biggest drop since 2009, when it fell by almost 22%, according to the INE. Industry Sales Break Six Years of Consecutive Annual Growth as a consequence of the crisis generated by the Covid.
The decline in industry turnover in 2020 It was the result of the falls in all sectors, especially in energy (-41.6%), followed by capital goods (-11.3%); intermediate goods (-10.3%); durable consumer goods (-10%) and non-durable consumer goods (-5.3%).
The branches where sales fell the most in 2020 were petroleum refining (-41.6%), the manufacture of jewelery and musical instruments (-30.9%), the leather and footwear industry ( -27.1%) and the manufacture of clothing (-21.6%).