Hoteliers warn of a 30% drop in sales in Andalusia due to the suspension of the AVE

Andalusian hoteliers are raising their voices due to a new delay in the reopening of rail traffic with Madrid. The Andalusian Federation of Hotels and Tourist Accommodations (FAHAT) warns of "an increasing deterioration of demand, with an estimated 30% drop in annual sales," to which they add "serious reputational damage if reliable and competitive rail connectivity is not urgently restored."

In an extensive statement, they express their concern about the situation in the Andalusian community following the closure of the AVE railway line since the tragic accident in Adamuz. Since then, the government stated that the network would be restored on February 2nd, later it was said to be this upcoming weekend, and now without a specific timeframe, leaving everything up in the air and worsened by a landslide in Álora. The hotel industry association, representing the entire sector in Andalusia, states that "although initially the impact resulted in a relatively contained level of cancellations, around 15%, the absence of a clear, stable, and guaranteed solution has caused a progressive and increasingly deep deterioration of demand." They specify that this effect is notably felt in the national market and in strategic segments such as corporate tourism and the meetings, incentives, conferences, and exhibitions segment.

They report that in recent weeks, in addition to the sustained increase in cancellations, there has been "a practical halt in short and medium-term bookings," to which they add the impact of successive storms that hinder the use of alternatives to rail transport, such as private or shared vehicles, further reducing accessibility to Andalusian destinations.

The Andalusian Federation of Hotels and Tourist Accommodations foresees "clearly negative" expectations and warns that "the combination of reduced connectivity, operational uncertainty, reduced frequency, and non-competitive travel times is directly affecting traveler confidence and the destination’s reputation." In this scenario, they estimate an annual sales reduction close to 30% "with occupancy declines already visible in the first quarter and a high dependence on the national market."

Regarding the impact on the events sector, they ensure that capacities do not even reach half of what was initially anticipated, as well as on key dates of the tourism calendar. "The prolongation of uncertainty is leading numerous potential visitors to opt for other destinations in the medium term," they emphasize.

FAHAT focuses on the fact that under these circumstances, "there are no effective levers to reverse this negative dynamic without a solid, reliable, and fully operational recovery of the high-speed rail service." They consider it "essential to restore confidence, ensure sufficient frequencies and competitive travel times, as well as to launch a communication campaign that reinforces the image of high-speed rail as a central axis of tourism." They insist that failing to correct the reputational damage "could translate into even more serious consequences for the sustainability of the Andalusian tourism sector."