January 18, 2021

ERTEs in the hospitality industry soar this month in more than 100,000 cases as closures continue


Madrid

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The new restrictions applied by the different autonomous communities triggered the ERTE in the hospitality industry again in the month of November. As explained today by the Minister of Inclusion, Social Security and Migration, José Luis Escrivá, on his Twitter account, since the end of September those affected by an ERTE in the hospitality industry have grown by more than 80,000 people. This means that there are currently some 220,000 workers in the sector affected by this mechanism, so only in the month of November more than 100,000 cases have been registered.

Escrivá has commented that currently ERTE cases are close to those registered in September, about 730,000. Therefore, if October closed with almost 600,000 affected, according to Social Security data, in the eleventh month of the year the number of people who enter an ERTE grows again by about 130,000. And of these, the hospitality industry is the sector that has included the most workers again. Specifically, the food and beverage services sector ended September with 136,821 workers in an ERTE. This figure decreased to 117,208 in October, that is, almost 20,000 fewer people. But if since September those affected have grown by more than 80,000, this means that in November the hospitality industry has included more than 100,000 people in a temporary regulation file.

The 220,000 hospitality workers who are an ERTE supposes that the sector brings together almost a third of the total, and it is not ruled out that these numbers continue to grow in December. Moreover, with these new cases, the sector exceeds those registered during the summer months. For example, at the end of July it had a total of 205,358 people affected.

While the temporary stops of the activity follow one another, the ghost of the final closures continues to lurk. In fact, according to data from the Hospitality management association, there are already more than 65,000 establishments that have had to permanently cease their activity, and predicts that 100,000 will be reached in the next few months. In addition, there are more than 350,000 jobs that have disappeared since the crisis broke out, while turnover has fallen by 50%. Thus, cases of closure of traditional establishments, such as the Bar Manolo in Seville and the Hontanares cafeteria in Madrid, they happen day by day.

Direct aid

With this outlook, the sector continues to demand aid so that the health crisis does not take thousands more businesses. Thus, the Juntos por la Hostelería platform, which includes the entire value chain of the sector, warns that 8,500 million euros will be needed to stop its collapse, which according to their data could lose a million jobs. The Government is studying undertaking specific aid for the sector, but it is still unknown what these measures will be and it will have direct aid.

The hospitality industry sees capital that receives direct aid and no more moratoriums or credits, because what the sector suffers from is liquidity, as they explain. In addition, they denounce that in other European countries, where the weight of the hotel industry in GDP is not as great as in Spain, where it represents 6.2%, direct aid has been implemented for worth nearly 40 billion of euros.

Specifically, as explained by Competur, Germany and the Netherlands are the ones that have allocated the most aid to the sector, with amounts amounting to 10,000 and 15,000 million euros respectively, followed by France, in which 6,000 million euros are allocated to bars and restaurants. In the case of Italy, the aid amounts to about 5,600 million euros. In addition, they highlight the speed with which these countries approved the aid when they announced restrictions to the sector. Thus, both Germany, France and Italy did not allow a week to elapse since they imposed closures in the hotel industry and decreed the aid.

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