by Juan M. Ferrer
Europe has again reconnected an injection of capital to the debt market of magnitudes never seen before, and it will be as they say in Galicia "that if the octopus threatens to float, it threatens temporarily", well, it is clear that the octopus in Europe not only it floats, if not it jumps, because it is the second time that the ECB decides to buy all the necessary debt from the countries as long as they survive the storm.
Most of the reference countries in Europe are taking very serious measures to help companies in general, as they understand that it is the fastest and cheapest way to create sustainable employment without steroids like those of Nissan. I invest in companies to make it easier for them to continue fighting and keeping jobs, this is not how the state should do it.
If we go to the tourism sector, or the tourism industry in our country as they like to call it, the European examples still attract more attention, since in countries where the sector is not even 6% of its GDP, investment is 10 times higher in the Spanish way, and that is that this aid should not be solely and exclusively for liquidity or a direct subsidy to the sector, but it could be in many other forms of stimulation that strengthen consumption, therefore the health of companies, here is a series of those examples close to us:
Portugal has just announced that it exempts hotels and restaurants from corporation tax. Almost nothing.
France does not skimp on aid to the tourism sector with a package of 18,000 million Euros, everything that our executive has not yet provided to stimulate the entire Spanish economy. In France, tourism represents 8%, and that is the most visited country in the world with 89 million tourists a year, in contrast to Spain, which is the second with 86 million and with triple the impact on our GDP, reaching 14, 6%, or a quarter of our total economy, and indirectly more than 30%.
Germany, has bet from the beginning on saving all its large tourism companies, see the immediate loan to TUI of 1,800 million to reach next year. And another 9,000 are on the table, in case your other tourism flagship, the Lufthansa company, needs them, although it is sometimes aware of the interference or clumsiness of politicians in private and effective management, it still prefers to analyze other financing channels, but for our comparative purposes, money is on the table. And the most striking thing in terms of incentives for consumption is the ipso facto drop in VAT, the general from 19% to 16% and the reduction from 7% to 5%.
The Italians, more atomized as a tourism sector, chaotic and undisciplined but always creative and great Phoenixes, have created 500-euro bonds for all families with incomes of less than 40,000 euros, to be spent in hotels and hostels throughout the country . It is clear where they will go. In addition, the region of Sicily has stretched the rope even further, if possible, and pays you for the fourth night of your stay at the hotel.
The United States with aid to the sector, is fireworks, regardless of the problems currently going through the movement "black lives matters" that today does not come up. Aid to the economy in general exceeds two trillion dollars, to give us an idea, double what Europe will give in debt, the United States gives it in CASH. Two different ways of printing money, and with oil so low, no major inflation in sight, at least for now in America. The most amazing thing is the record in job creation in this past month of May, with a total of 2.5 million more jobs compared to April, and with tourism, leisure and hospitality leading the figure with 1.3 Millions of new jobs. Second place is construction and third, of course, is the health sector.
But if there is a country that is taking the plunge, small and effective, dependent on Spain and almost a small copy of its economy, this is Portugal, with the permission of silent Greece and Turkey. In Portugal they think about everything. Do free tests to all tourists, even if it is a temporary photo that is of little use, it is marketed for rent and they use it. Micro loans with almost “0” interest to companies with less than 10 workers, so that they can endure. And they remain faithful to wanting to lead tourism with their ambitious Tourism Strategy 2027 program, where it is a matter of State. In addition, they have been able to stimulate the business fabric in general with a great policy of tax incentives and a more flexible, close and collaborative administration, which is helped by a fast digital ecosystem, to facilitate foreign investment, with great success. I invite all of you to analyze it these next few years.
Meanwhile in our country, they smoke a cigar. After several meetings in I don't know how many phases, with Fernando Simón instead of Steven Spilberg, and between contradictory messages of quarantines and opening dates to the issuing markets, it will not be enough for an example of ineffectiveness and zero empathy, and to top it off about they write or ignore the Minister of Industry and Tourism. And, with this panorama, those of the tourism sector, on this island, 90% is in its right mind, we must constantly demand that they help us, so that they know that we exist, we must constantly raise our voices so that they give us the obvious, without even know what rules of the game we businessmen have for the month of July. Our president goes out in prime time every weekend to talk to the mirror about the bad queen of Snow White and “mirror, mirror” we still don't know anything clearly, neither what help, nor what incentives, nor what future awaits us.
The best businessmen in the country should expose themselves and tell them that 151 million for the entire tourism sector is not even double what Israel has given only to the hotel sector, receiving only 4.5 million tourists. And our great chefs representing Hospitality in Spain, begging the Government to sit down to negotiate with the sector, when normally it is someone from the Government who begs them to give him a table in one of their restaurants. The truth is that these Madrid politicians smoke a cigar with Tourism.
https://www.mallorcadiario.com/me-fumo-un-puro-juan-miguel-ferrer
published by: www.mallorcadiario.com
