“Hotel companies in the Algarve with no prospects for the future” – AHETA

“Hotel companies in the Algarve with no prospects for the future” - AHETA


AHETA says that measures to support the economy to mitigate the effects of the Covid-19 pandemic “know little”

The Association of Hotels and Tourist Enterprises of the Algarve (AHETA) considers that measures to support the economy to mitigate the effects of the pandemic “know little”, leaving companies in the sector “with no prospects for the future”.

"In general terms, the measures now announced are little known, having been taken in the perspective of a progressive recovery of the economy that, in the case of tourism, has not yet happened", points out the business association, in statements.

The extension of the moratoriums until next September, guarantees AHETA, “not only does it not solve the problems of hotel and tourist companies in the Algarve, but it leaves them immersed in a sea of ​​uncertainties and, therefore, without prospects for the future”.

The Algarve hotel companies, he adds, are facing “a deficient management since the end of October 2019”, which has led to its decapitalization.

Next summer's revenue does not cover low season losses

The forecasts for next summer, says the association, "do not allow to collect enough revenue to support the high fixed costs of regional tourism enterprises during the next low season".

AHETA also regrets that the reopening of golf courses “has not been considered at the outset”, since these important tourist entertainment structures, by their nature, “comply with all safety rules”.

As, with this scenario, the resumption to previous years' levels “is only predictable from the tourist season of 2022”, AHETA argues that the fiscal and financial moratoriums should be extended until September of next year, “since the companies do not they will generate enough cash flow to support the high fixed costs and, much less, the repayments of the outstanding capital and the respective interest ”.

“Given the size and duration of the crisis, the government persists in taking very short-term, inconsistent measures and, therefore, without a strategic and forward-looking vision for the future, which will prevent companies from responding effectively to competitive challenges. in the recovery phase. Short-term measures do not solve the structural crisis that affects tourism business activity in the country in general and in the Algarve in particular ”, stress businesspeople in the tourism sector.

According to the association, "many companies face a very dramatic scenario, leaving them no other solution than foreclosure or insolvency, which will further accentuate the levels of unemployment in the region".

To conclude, AHETA calls on the government “once again” to implement “the promised Specific Emergency Plan to Recover Tourism in the Algarve, an instrument without which hotel and tourist companies and the region will not be able to face the situation enormous difficulties in which they find themselves ”.

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