The Spanish Federation of Housing Associations and Tourist Apartments (Fevitur) estimates that this business will lose 2.9 billion by the end of 2020 due to the health and economic crisis caused by covid-19. Some owners of these homes have landed in temporary rentals as a "survival" to cover the costs of mortgages and expenses derived from the apartment. They offer contracts from six months to one year that are totally legal, in very good locations and with very competitive prices to seduce foreign workers who have moved to Spain or students - the profile of this type of client. A change of model, of objectives and of platforms where to advertise to survive the tourist stop.
For Spain, tourism is a fundamental sector. According to INE data, in 2019 83.7 million foreign tourists visited Spain, leaving behind a spending of 92,278 million euros. This figure represents 12.5% of national GDP, a percentage that shows the importance of this business. It is the great engine of the Spanish economy, but the crisis resulting from the coronavirus has ended up by flu. Within this segment there are several businesses: air transport, hotels, restaurants and tourist accommodation.
The paralysis of the country has hit hard the foundations of many companies related to these businesses, although not all of them have been affected equally. For example, with regard to accommodation, experts have pointed out that the large hotel chains will be able to endure a total hibernation of their activity during 2020 because they have entered the recession with a low level of debt and a large cash flow. On the other hand, the medium and small operators will have a worse luck because they do not have the financial muscle to support reopenings with occupation levels not higher than 20%, which is what the experts of the sector predict.
But what about tourist housing? In this business, several scenarios are opening up: pessimism in the near future, but great optimism in the long term. For the owners (individuals and companies) of tourist apartments this 2020 is a year almost lost. In fact, Fevitur sets new goals for the next year. The association hopes that at the end of June - the date set by the government to enter into what they have called "new normality" - the sector can return to operate with an inflow of reserves for the last quarter of the year, and that this will be a beginning of recovery for 2021.