Industry president in Chile says between 25% and 30% of all hotels will go out of business

RIO DE JANEIRO, BRAZIL – The tourism sector, and specifically hotels, have been one of the most damaged during the pandemic. Even today, when there is already talk of a strong economic recovery.

Although hotels are operating as sanitary residences, the damage to this sector persists, mainly due to the long extension of the border closure for the entry of foreigners, among others.

Read also: Check out our coverage on Chile

Alberto Pirola, the owner of Noi hotels and president of Hoteleros de Chile, a guild that brings together 370 hotels, hostels, and apart-hotels in the country, said in Pauta de Negocios, of Radio PAUTA, that although he appreciates the greater movement of Chileans, occupancy today fluctuates between 20% and 30% at the most. “With that, the hotel industry is not even enough to cover expenses”, he said.

On September 16, the union will meet with the Minister of Health, Enrique Paris, to show him the serious complexities they face due to the extended border closure that does not allow the entry of foreigners.

They will tell him that they have experienced a lean period also due to the social unrest and the subsequent cancellation of international events such as COP25 and APEC.

If this situation persists, the guild has stated that “between 25% and 30% of the hotels will bankrupt”. This month the first installment of the Fogape is due, and then a hard step in the sector’s complexities will come, they assure.

According to Pirola, 40% of the members are in arrears with one or more installments of contributions, and several others have not been able to pay taxes. “When you can no longer pay, it is giving you a parameter,” he said.

The president of Hoteleros de Chile also warned that they are facing a “second pandemic” due to direct transfers to individuals: “Employees do not want to go back to work because they prefer to stay at home because of the state subsidies.”

This complicates service delivery, he said, because workers do not arrive. Hotels in the country employ around 600,000 people.

LACK OF SUPPORT FROM THE AUTHORITIES

Alberto Pirola emphasized that the authorities have not come forward to provide support, but rather it has been the association itself that has sought such interactions. Although they have met about six times with the Minister of Economy, Lucas Palacios, this will be the first time they have met with the Minister of Health, Enrique Paris.

He pointed out that they have also requested meetings with the Medical Association, where “we have not even had a response.”

The president of the guild warned that “the authorities and medical associations must learn to listen to the experience” and added that Chile today is far ahead in the subject of vaccines, and even advancing in the third dose, so the country must take advantage of this, especially considering that Chile’s main tourist attraction is outdoors.

For all these reasons, Pirola is hopeful that tourism from Chile will recover strongly once the borders are opened.

However, he asked to modify the parameters of how the pandemic is measured because “the coronavirus is not going to disappear. If we expect to reach zero contagion, we might as well disappear,” he said. “There are many families on our backs, we need to return to normality”, said the owner of Hoteles Noi.