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Lockdown in tourism costs 14 billion euros in sales

by alex

Wifo is assuming a fall in overnight stays of 85 percent this winter

Whether you can go on holiday at Easter this year and if so, which hotels will be open is still in the stars. The responsible experts and politicians will re-evaluate the timetable for the reopening of the hotel and restaurant business every two weeks. Due to the high number of infections, an opening in March at the earliest is realistic from today's perspective. “Anything else would be a crazy signal”, thinks Oliver Fritz, tourism expert from the Economic Research Institute (Wifo).

Image question

Especially now, when the Corona measures are also being tightened in neighboring countries, Austria “after Ischgl” cannot afford to make any mistakes. “The pictures of full ski lifts didn’t exactly improve the image recently. Just as little as headlines from infected ski instructors from Great Britain in Tyrol or from landlords who rent guest rooms to tourists despite lockdowns and entry bans, ”says Fritz. “This can give the impression that the tourism professionals only take care of themselves and do not take the Corona rules into account.”

In the short term, Corona is throwing the hoteliers through the bill. According to current estimates by Wifo, the number of overnight stays this winter will drop by 85 percent compared to the previous year. “Assuming that in March at least the locals can go to the slopes and to the thermal baths,” explains Fritz. With open borders and an end to travel warnings, nobody can seriously count on this season anyway.

holding pattern

According to Wifo, tourism revenues will collapse by 14 billion euros this season, with a total of eight billion euros affecting the hotel and catering industry in particular. But also all those who are attached to tourism – from ski rentals to taxi companies to the entire event sector. In December, Fritz had assumed a decline in sales of 12.7 billion euros. Even when the season is more or less over, many hoteliers stay on standby, says the expert. They want to unlock the door, if only to send a signal to their regular guests (and to prevent them from checking in elsewhere in the future).

Catch-up effects

The hope for a reasonably passable season has long been moved to summer. “The optimism is certainly not unfounded,” says Fritz. After all, many whose planned vacations were thwarted in autumn, winter or spring would want to leave for a few days at the latest in summer. Nonetheless: the bottom line is that a minus in the number of overnight stays has already been identified. Because, especially in the cities, guests from overseas will continue to be absent, especially in Vienna. Experts do not expect full hotel beds again until 2022 at the earliest.

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