Spain launches emergency £3.8bn rescue plan for tourism industry

Sector lost billions after three month of restrictions and closures due to coronavirus pandemic

The Spanish government has unveiled a €4.2bn (£3.8bn) aid package that will help the country’s tourism sector recover from the economic fallout of the coronavirus pandemic.

Spain aims to reopen its borders next week to visitors from the EU, including the UK, after three months of restrictions and closures that have paralysed the industry, leading to an estimated €80bn (£72bn) in losses.

The package comes at a crucial time for a sector that accounts for 12 per cent of Spain’s gross domestic product (GDP).

The initiative, dubbed the Tourism Sector Promotion Plan, will provide airlines with incentives to travel to Spain in an effort to attract the greatest number of international visitors.

Announcing the plan, Spanish prime minister Pedro Sanchez said: “This is an imperative aid plan for tourism.

“It is of great importance to the image and reputation of our country.

“We are a world leader and each step we take will be safe.”

Most of the package, about £2.25 billion, is made up of credit guarantees offered by the government for tourism operators.

The plan will be focus on five key areas: consolidating Spain as a safe destination; supporting companies in the sector; improving the competitiveness of the tourism industry; using marketing tools to promote international and domestic tourism; and building tourism intelligence.

The aid package will also include cash transfers to state-controlled airport operator Aena to cut landing fees and other charges. “We hope this is going to help bring about the fastest possible recovery of air traffic to our country,” Mr Sanchez said.

Spain’s tourism industry is heavily reliant on air arrivals, with more than 80 per cent of travellers to the country arriving by plane.

The government will help companies by suspending mortgage payments for up to 12 months and grant aid for health and safety measures and training for workers.

The World Tourism Organisation has welcomed Spain’s readiness to lead the way in restarting tourism.

Zurab Pololikashvili, the head of the United Nations specialised agency, said: “By restarting tourism, and doing so in a responsible manner that protects the most vulnerable while safeguarding jobs and economic growth, Spain can send a strong signal to the rest of the world.

“The country has long been a global tourism leader, and I thank President Sánchez for again stepping up and setting an example for other countries to follow.”