The Portuguese hotel industry estimates losses of 800 million euros by June due to the coronavirus

At the beginning of March, 346,497 nights in hotels were cancelled due to the epidemic in Portugal

Photo by Márcio Sousa on Unsplash
Photo by Márcio Sousa on Unsplash
26 March 2020, Redaction

The coronavirus outbreak could cost Portuguese hotels between 500 and 800 million euros by June. This is according to forecasts by the Hotel Association of Portugal (AHP), after conducting a survey among national hoteliers to understand the impact that Covid-19 is having on the sector.

At the start of this month between 3rd and 9th March, which was the designated survey period, 346,497 nights in hotels were cancelled due to the epidemic. The AHP predicts that by the end of June, in a 30% drop scenario, the loss of overnight stays in national hotels could reach 4.4 million. In a much worse scenario, such as a 50% drop, the losses could reach 7.3 million. In terms of revenue, and over the 4-month period, the projected losses will be between 500 and 800 million euros.

"In an analysis of the results, we can see that the scenario is not at all positive and that it is getting worse every day", reveals the association, in a statement. The first data show that 70% of respondents at national level indicate that cancellation rates are higher than in previous years. By region, the most affected are Lisbon and the North Region, followed by Alentejo and the Azores. For hotels in the Algarve and Madeira the Covid-19 effect is also already being felt, but with fewer cancellations.

About 40% of the hoteliers indicate that the cancellations due to the Covid-19 are already over 10%, which translates into more than 306,000 cancelled nights. At national level, Italy is also highly affected by cancellations, followed by China, Spain, Portugal and the United Kingdom. The situation is however very fast moving and is expected to deteriorate before getting better.

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