Hotels see loss of revenue to end-June of up to €800M from coronavirus

Portugal’s Hotels Association (AHP) foresees the loss of between €500 million and €800 million in tourism revenue between March 1st and June 30th this year, according to a survey of its members whose results were released on Thursday.

The forecasts, presented by the AHP at a news conference in a hotel in Lisbon, are contained in a survey of associates carried out between March 3rd and 9th, with data updated daily, on the impact the Covid-19 outbreak is having on Portugal’s hotel sector.

In a more positive scenario, with losses of 30% of revenues from foreign guests in the hotel business, the estimated losses between  March 1st and June 30th would be €500 million. In a scenario of a 50% drop in such revenues, the losses in the period could be as much as €800 million.

The AHP notes that the outlook could yet worsen, as the calculations were based on responses obtained from members between March 3rd and 9th  – before, for example, the announcement by the US president, Donald Trump, that all flights to and from Europe were to be suspended.