The Colombian hotel sector at risk from the Covid-19

1024 576
Travel2Latam
Travel2Latam
https://en.travel2latam.com/nota/59857-the-colombian-hotel-sector-at-risk-from-the-covid-19
The Colombian hotel sector at risk from the Covid-19
Fri April 24, 2020

Cotelco has released a report today that reveals the fragile situation of the hospitality market


The recent crisis generated by the expansion of COVID 19 worldwide and, of course, its impact in Colombia has exposed the fragility of the tourism and hotel sector in the face of events of this magnitude, translated into a paralysis of its productive activity and with it the drama of thousands of families who derive their livelihood from the so-called chimneyless industry.
One of the most affected links corresponds to the hotel sector, considering that it is labor intensive and carries high fixed costs. Although the hotel sector in Colombia is heterogeneous, it is made up of 26,438 establishments, mostly (82.5%) small or with less than 20 rooms, being frequent, outside the main capital cities, family businesses or micro-businesses that generate an income opportunity for Colombians and the regions where they are located.

Based on the analyzes carried out by the Colombian Tourism Thought Center - CPTUR, a research and reflection unit made up of COTELCO and UNICAFAM, hospitality as an economic activity, together with food services, contributes 3.9% of the country's GDP and generates an average of 110,000 jobs.
The economic and social emergency and social isolation measures took the hotel sector by surprise, which saw the need to paralyze its productive activity, which is why more than 80% of hotels in Colombia are up to date. Today closed to the public and those who keep their doors open, present an average occupation of 2.89%.

The economic and social emergency and social isolation measures took the hotel sector by surprise, which saw the need to paralyze its productive activity, which is why more than 80% of hotels in Colombia are up to date. Today closed to the public and those who keep their doors open, present an average occupation of 2.89%.

According to the hotel operation studies carried out annually by COTELCO, the country's hotel sector generates annual revenues of 14.4 trillion pesos, which means that each month of closing activities represents a decrease in income of 1.2 trillion pesos and 110,000 jobs at risk given the foreseeable slow recovery of the sector.

The study "Employment in the tourism sector: analysis of labor indicators for Colombia 2007-2017" conducted by the Center for Tourism Thought - CPTUR, indicates that the majority of the population linked to tourism activities and specifically hotel, corresponds to women, aged between 14 and 35 years, belonging to strata 1 and 2, many of them mothers who are heads of household with a maximum level of high school education. Undoubtedly, the difficulty of hospitality to cover the payroll is transferred to a social difficulty of people who derive their livelihood from hospitality.
Based on the study of positions and salaries that COTELCO carries out every two years, 84.5% of workers in the sector have incomes less than or equal to two monthly legal minimum salaries. Similarly, based on this study, it is estimated that the monthly payroll of the hotel sector is 210,000 million pesos, therefore, the sector would require, to cover the lowest-income population, about 180,000 million pesos monthly.

Given the extension of the quarantine until May 11 and hoping to start reactivating operations in mid-May, the scenario, even optimistic, allows us to estimate an occupation of 30.84% ​​by the end of 2020, about half of the average occupation achieved in 2019.

Finally, considering the exposed scenario, the structure of the hotel sector in Colombia and the estimated value of the investment required to build and make a room available to the market, the COVID 19 crisis puts at risk not only 110,000 jobs in the economy, but which additionally puts in a critical situation a gross capital formation estimated at 56 trillion pesos, represented in the hotel infrastructure that the country has today.

visitas

Did you like the news? Share it!

to continue reading ...