Concern and uncertainty in the Valencian hotel industry in the face of negative forecasts

The Valencian hoteliers have shown their discomfort and uncertainty, which has been widely generated in the sector in the face of negative forecasts of the next quarter of the year. According to published data the rising energy costsraw materials and inflation at 10.8% makes the viability of more than 48% of the premises very difficult, which already predict decline in the coming months.

From Hostelería Valencia (Business Federation of Hospitality of Valencia) they point out that the price increase on cards, a measure that was taken as a strategy to contain inflation, has not been enough to alleviate this constant increase in costs. They regret that margins are shrinking and for companies in the catering sector, expenses have meant an increase of 50% compared to the general level, as shown by the latest CPI data.

Many premises have been forced to rethink the closure of establishments due to the high figures of the bills they have had to face at the end of the month. From the federation, based on some studies by economists specialized in the sector, they indicate a high percentage of closuressome of the theses reaching up to 75% of premises that would lower the blind.

In the previous months, the Easter and summer campaigns allowed many companies to survive, where consumption was motivated by the holiday periods, but the context is worsening and they point out, “we are entering a situation that is even more detrimental to the continuity of hospitality business”.

The hoteliers indicate that to all this situation it is necessary to add that the family capital available is less and less and therefore months are expected with a noticeable drop in customerssince the economy in the families when being resentful, what it will do without in the first place will be the consumption of restaurants and leisure.

That is why they request that the central and regional government take the situation into account and apply measures such as reductions in the energy rates of the catering establishments to face this unstoppable rise in costs. The Valencia Hospitality Business Federation has requested a meeting with the Finance Minister Arcadi Spain to present and analyze the delicate situation and address solutions in accordance with the context facing the sector.

Valencian hoteliers claim to safeguard our gastronomic heritage. “Since the pandemic began, we have been in the government’s sights and we have to say enough is enough, we are a tractor sector of the economy that cannot be diluted like sugar in coffee. It has been many years of effort by many families to maintain this business fabric that is so important for tourism” they have transferred.

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