The Swedish hotel industry has lost 17 billion kronor since the outbreak of the pandemic a little over a year ago. If tax credits and restructuring support are not put in place, there are fears of a wave of bankruptcies.
In a recent compilation, the industry organization Visita states that hotel revenue has decreased by SEK 17 billion since March last year. This corresponds to a decline of just over 60 percent.
After a dismal spring last year, hope was revived during the summer months, when some parts of the hotel industry saw sales pick up. But when the second wave took off in the fall, the situation quickly became acute again.
”"It has been a very difficult period and many have been hit hard. Several hotels have had to lay off all staff and have since been empty," says Thomas Jakobsson, chief economist at Visita.
The industry is now waiting for the enhanced transition support to be put in place and interpreted in a way that hotels can also benefit from it.
”"There is a lot of money at stake and it will be devastating if the companies are not granted support."”
According to Visita, there have been no dramatic increases in bankruptcies or restructurings.
”An important factor behind this is the possibility of deferring tax payments,” says Thomas Jakobsson.
There are now 6,000 companies in the hotel and restaurant sector that owe the state approximately SEK 4.5 billion.
”It’s due next year, after 14 months of bloodshed. You have less than a year to earn this money, while the regular taxes are due. It’s a ticking time bomb. Many people won’t make it.”
What do you think about summer?
”"The situation is extremely uncertain, it will be far from a normal summer. The booking situation on May 1 this year was 67 percent worse than at the same time in 2019."”
According to Visita, announced easing of restrictions and an increased number of vaccinated people should result in a situation that will be better than last year. Although demand for hotel rooms is picking up, the crisis is far from over, according to the chief economist.
”"But hopefully more people can cope with the crisis if only the restructuring support that the hotels are entitled to is paid out."”
Both politicians and economists are now pointing out that the Swedish people's pent-up consumption needs after just over a year of quiet could get the economic wheels spinning. But Thomas Jakobsson does not expect the tourism industry to benefit from a possible shopping spree.
”"The hospitality industry is a lot about regular consumption, such as lunches and vacations. The lost consumption will hardly be compensated for more than on the margin when we finally reach a normal situation."”
Source: di.se
