The loss of the hospitality industry in revenues is estimated at PLN 750 million in May

Losses in the hotel industry in revenues resulting from restrictions in the operation of the facilities could have amounted to approx. PLN 750 million in May, estimates the Chamber of Commerce of the Polish Hotel Industry (IGHP). For June, the loss is estimated at approx. PLN 0.5 billion.

In the April performance survey, in view of the continued closure of the hotels for the long May weekend, opening them only from May 8, limited to 50 percent of places and without the possibility of providing open gastronomy and accompanying services, IGHP asked hotels for respect losses in May, resulting from the maintenance of the abovementioned restrictions and limitations. In the May results survey, the Association repeated this question with a request to verify the actual losses.According to the data obtained, the average loss was estimated at PLN 426 thousand per facility, and per hotel room, PLN 5.1 thousand. that in May the industry recorded even higher losses than it had forecasted! With approx. 2,600 hotels, 145,000 hotel rooms, it lost at least PLN 750 million, which is a quarter of a billion more than estimated, according to IGHP

Due to the limitations in the form of 50 percent of available rooms and places in the restaurant, also in June, IGHP asked a similar question about the estimated loss in revenues resulting from the above restrictions. Based on the data obtained, the average loss was estimated at PLN 280,000. PLN per facility, and per hotel room: 3.8 thousand. PLN. This means that in June the industry estimates the loss in revenues at around PLN 0.5 billion.

The vast majority of hotels, i.e. over 87 percent, do not expect to achieve a profit on operating activities earlier than at the end of 2022 (an improvement by 5 percentage points), and the clearly unfavourable percentage of hotels pointing to a period later than 2022 is more than half (53%) . As a result, the assessment of the return of revenues to the level from 2018-19 was also slightly better. However, the year 2023 was still indicated as the most probable: 46%, and 2024 and the following years still constitute a significant part of the respondents, i.e. 31%.

Although the results of the industry in May indicate an improvement compared to April, the constraints are maintained, i.e. the release of hotel operations after a long weekend with a limit of 50 percent of available rooms and without the possibility of providing open gastronomy and accompanying services practically throughout the month (until May 28) , still had a clearly negative impact on the results of the facilities in the past month. 76% of hotels recorded an average occupancy rate of no more than 30 percent, of which 47 percent below 20 percent and 20 percent below 10 percent occupancy. On the positive note, only 2 percent of hotels were closed, it was also reported.

The data on the average price index remained at significantly low levels. 67 percent of hotels recorded prices lower than in May 2019, while for 35 percent the drops were greater than 10 percent, and for 21 percent more than 20 percent. At the same time, 15 percent of hotels maintained the average prices from 2019, and 26 percent recorded an increase of no more than 10 percent, lists the IGHP.

Data on accepted bookings for the following months, including those for the holiday July and August, are still at a low level. This is partly due to the fact that, on the one hand, the limit of 75 percent of available rooms is maintained during the holidays, and on the other hand, the so-called a vaccination certificate against COVID-19, which greatly facilitates the organisation of a foreign holiday stay.

Forecasts still indicate a very cautious expectation of the recovery of both business and tourist traffic. In June, 74% of hotels declare occupancy not higher than 40 percent, more than half below 30 percent. occupancy not higher than 40%, and 2/3 below 30%. From the positive information, we can note a minimal (below 1 percent) percentage of hotels that plan to remain closed, according to IGHP.

196 hotels located in all provinces took part in the survey conducted on June 10-14.

Source: IGHP and ISBnews