The hospitality industry cut its turnover by 50.1% in 2020 due to the impact of the pandemic




The hospitality industry has been one of the sectors most affected by the Covid-19 health crisis in 2020, the year in which it cut its turnover by 50.1% and its workforce by 13.3%, including workers affected by a File of Temporary Employment Regulation (ERTE), which in both cases represents the biggest collapse since 2000, when the series starts. It is also about the first drop in billing for bars and restaurants since 2013, after seven consecutive years on the rise, according to data released this Monday by the National Institute of Statistics (INE).

In the months of March to June, with the confinement, the opening to the public of non-essential retail establishments and establishments as well as hotel and restaurant activities were suspended, which produced an almost total stoppage of the service sector that, although it affected all sectors, had a significant influence on the hospitality industry.

With the arrival of the de-escalation, there was a generalized recovery, which, according to the INE, was maintained for most sectors during the second half of the year, although unevenly, as the hotel industry saw its growing evolution slow down after the summer.

Sales drop

In general, the services sector registered an average decrease in its turnover of 15.6% in 2020 due to the crisis generated by the pandemic, its biggest drop since 2000, when the series began. This collapse in sales in the services sector also breaks with six years of consecutive annual growth.

In 2020 as a whole, all services sectors recorded negative annual rates. The commerce cut its sales by 12.1% last year, with falls of 19.3% in the sale and repair of vehicles and motorcycles, 12.6% in the wholesale trade and 8.1% in the retail trade.

On the other hand, the billing of other services sank by 21.9% in 2020. The smallest decreases within other services were in information and communications (-8.8%) and professional, scientific and technical activities (- 10.6%), while the most accused were the hotel industry (-50.1%), administrative activities and auxiliary services (-29.6%) and transportation and storage (-19.1%).

By branches, the largest annual declines in billing were recorded by travel agencies (-75%), accommodation services (-68%), air transport (-60.1%) and taxi transport (-53 , 6%).

Only three activities sold more than in 2020 than in 2019: ICT equipment wholesale trade (+ 4.7%), wholesale trade of agricultural raw materials and live animals (+ 0.4%) and security activities and research (+ 0.2%).

Fall in employment

Employment created by services fell an average of 4.3% last year, a decline that is the sharpest in 11 years and also breaks with six consecutive years of annual growth. All sectors cut their workforce in 2020, especially the hospitality industry (-13.3%).

In the whole of 2020, all the communities reduced the turnover of the services sector, highlighting the collapses registered by the islands: the Balearic Islands cut their turnover by 37.8% and the Canary Islands, by 29.9%. The smallest falls occurred in Murcia (-2.4%) and Extremadura (-5.5%).

Regarding employment, the employed personnel also fell in all regions, and again the tourist communities were the most affected. Thus, the occupation of services in the Balearic Islands fell by an average of 14.7% in 2020, while in the Canary Islands it fell by 7.5%. The smallest decrease was also for Murcia, with an average drop in occupancy of 1.6%.

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