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TOURISM

‘Covid rollercoaster’: Spain’s tourism industry struggles to see light at the end of the tunnel

The prospects for Spain's tourism sector are getting bleaker, with European reservations slowing over soaring Covid cases, but industry experts hope the summer won't resemble the catastrophe of 2020.

SPAIN-TOURISM-HISTORY-TRANSPORT-TRAIN
Passengers rest as they ride Palma-Soller train in the Spanish Balearic Island of Mallorca on July 14th, 2021. Photo: Jaime Reina/AFP

The Exceltur tourism association said this week that it had seen a sudden slowdown in reservations after the French and German governments urged their citizens to avoid Spain, which has seen a recent surge in infections.

“Bookings were going well but have slowed down, especially from France,” Jorge Marichal, head of the Spanish Confederation of Hotels and Tourist Accommodation (CEHAT), told Spain’s RTVE public broadcaster.

“The situation changes very quickly and within hours. The whole summer will be the same — a roller-coaster ride in which we will have to make decisions as we go along.”

The season started on a positive note: bookings at seaside hotels — which in April and May were 80 percent lower than in 2019 — improved in June, meaning the figure was only 60 percent below the same period two years ago, Exceltur said.

At the start of July, the government restated its aim of drawing 45 million visitors this year, around half the number in 2019.

Before the pandemic hit in spring 2020, Spain was the world’s second-most popular tourist destination after France, and the sector accounted for around 12 percent of the economy.

But the situation has deteriorated rapidly following a mass outbreak among students celebrating in the Balearic Islands that quickly spread across the country.

On July 8, France warned its nationals against travelling to Spain or Portugal on holiday because of a spike in Covid-19 cases caused by the highly-contagious Delta variant.

The move sparked outrage across the Pyrenees although France’s top diplomat later modified the warning, saying only that vaccination was a must before travelling to Spain.

Germany also declared all of Spain to be a risk area last week, including its two popular archipelagos — the Canary Islands in the Atlantic and the Balearic Isles in the Mediterranean.

The Balearic Islands were downgraded by Britain as well this week to its “amber” travel list, removing them from the green list where they had been placed in late June.

The move means that from Monday, any non-vaccinated British travellers will have to quarantine for 10 days after returning from the islands.

READ ALSO: Petition calls on UK government to recognise vaccination certificates of Brits living in Spain

Tourists enjoy a day at Magaluf Beach in Calvia, Mallorca. Photo: JAIME REINA / AFP

‘Last minute’ 

“Any announcement from the authorities in our main visitor markets has an immediate impact,” Maria Frontera, head of the Balearic Islands’ hotel federation, told Cadena Cope radio.

Before the pandemic, the islands’ largest visitor groups were British, French and German nationals.

But even though new bookings have slowed, few travellers had cancelled their bookings outright, she said.

“For now, we’re getting more reservations than cancellations.”

The same scenario is playing out on the Costa Brava in northeastern Spain where the French account for nearly half of all foreign tourists.

While the warnings have slowed reservations, “bookings are still coming in,” said Judit Lloberol, head of the Costa Brava’s hotel association.

“There have been some cancellations but it’s not been too dramatic.”

Visitors were being very cautious, she said, largely booking “at the last minute” with hotel occupancy rates not exceeding 65-70 percent on weekdays, at a time of year when they would normally be “overbooked”.

But on the southern Costa del Sol, a hotspot for British holidaymakers, bookings have surged in recent days after London lifted quarantine requirements for all vaccinated returning travellers, said Javier Hernandez of the region’s hotel association.

He said hotel occupancy rates were expected to average around 60 percent in July and August, barring any last-minute surprises.

Economic devastation caused by the pandemic nonetheless remains visible with nearly one in four hotels on the Costa del Sol not opening at all, and close to one in five in the Balearic Islands, industry figures show.

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TRAVEL NEWS

German train strike wave to end following new labour agreement

Germany's Deutsche Bahn rail operator and the GDL train drivers' union have reached a deal in a wage dispute that has caused months of crippling strikes in the country, the union said.

German train strike wave to end following new labour agreement

“The German Train Drivers’ Union (GDL) and Deutsche Bahn have reached a wage agreement,” GDL said in a statement.

Further details will be announced in a press conference on Tuesday, the union said. A spokesman for Deutsche Bahn also confirmed that an agreement had been reached.

Train drivers have walked out six times since November, causing disruption for huge numbers of passengers.

The strikes have often lasted for several days and have also caused disruption to freight traffic, with the most recent walkout in mid-March.

In late January, rail traffic was paralysed for five days on the national network in one of the longest strikes in Deutsche Bahn’s history.

READ ALSO: Why are German train drivers launching more strike action?

Europe’s largest economy has faced industrial action for months as workers and management across multiple sectors wrestle over terms amid high inflation and weak business activity.

The strikes have exacerbated an already gloomy economic picture, with the German economy shrinking 0.3 percent across the whole of last year.

What we know about the new offer so far

Through the new agreement, there will be optional reduction of a work week to 36 hours at the start of 2027, 35.5 hours from 2028 and then 35 hours from 2029. For the last three stages, employees must notify their employer themselves if they wish to take advantage of the reduction steps.

However, they can also opt to work the same or more hours – up to 40 hours per week are possible in under the new “optional model”.

“One thing is clear: if you work more, you get more money,” said Deutsche Bahn spokesperson Martin Seiler. Accordingly, employees will receive 2.7 percent more pay for each additional or unchanged working hour.

According to Deutsche Bahn, other parts of the agreement included a pay increase of 420 per month in two stages, a tax and duty-free inflation adjustment bonus of 2,850 and a term of 26 months.

Growing pressure

Last year’s walkouts cost Deutsche Bahn some 200 million, according to estimates by the operator, which overall recorded a net loss for 2023 of 2.35 billion.

Germany has historically been among the countries in Europe where workers went on strike the least.

But since the end of 2022, the country has seen growing labour unrest, while real wages have fallen by four percent since the start of the war in Ukraine.

German airline Lufthansa is also locked in wage disputes with ground staff and cabin crew.

Several strikes have severely disrupted the group’s business in recent weeks and will weigh on first-quarter results, according to the group’s management.

Airport security staff have also staged several walkouts since January.

Some politicians have called for Germany to put in place rules to restrict critical infrastructure like rail transport from industrial action.

But Chancellor Olaf Scholz has rejected the calls, arguing that “the right to strike is written in the constitution… and that is a democratic right for which unions and workers have fought”.

The strikes have piled growing pressure on the coalition government between Scholz’s Social Democrats, the Greens and the pro-business FDP, which has scored dismally in recent opinion polls.

The far-right AfD has been enjoying a boost in popularity amid the unrest with elections in three key former East German states due to take place later this year.

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