The hotel market is one of the most affected by the situation. The outbreak of the coronavirus across Spain caused massive cancellations, which steadily reduced occupancy levels, until several of the major market chains opted to temporarily close their establishments. The situation worsened with the closure of borders, followed by the order to close all touristic establishments. This prevents a new market peak from being achieved, in terms of the number of travelers in 2020, as has been increasing steadily since 2012.
The temporary nature of the crisis will allow tourism to regain its momentum when the impact of COVID-19 is reduced to a minimum.
The temporary nature of the crisis will allow tourism to regain its momentum when the impact of COVID-19 is reduced to a minimum. The indicators coming from Asia are favourable, but in the short term the total resumption of the activity seems rather complicated given the global nature of the business. The reestablishment of trade fairs and conferences will be one of the driving forces behind the recovery of the urban sector. The recovery of the holiday sector is more uncertain, as it will depend not only on the end of the crisis in Spain, but also on other countries that frequently travel there.
The current situation has pushed back plans to develop hotel chains until at least the infection curve has been controlled. Although the recovery period is still uncertain, from the experience of previous disruptive crises, it is safe to say that the market will regain the fundamentals from before the COVID-19 outbreak.