There are conditions for the recovery of a crucial sector of our economy, which in any case is called upon to rethink its offerings to remain competitive in the face of rapidly changing demand. It is not a question of cost, since both capital and financial solutions are not lacking, but of changing perspective.
Behind them an annus horribilis
The year 2020 has gone down in history as a very bad year for the hospitality industry. After a positive start, the Covid-19 pandemic broke out, which zeroed in on restarts until late spring. There was a recovery in the summer, but the second wave of contagion hit in the fall and winter. The scenario did not change much in the first quarter of this year, with foreign arrivals plummeting 92 percent (according to a Federalberghi study) compared to the same period in 2019.
A situation that has had dramatic effects on industry players, who lost a total of 16 billion in sales between 2021 and the first three months of 2021. Wealth lost that means companies in crisis, people losing their jobs, and difficulty in moving forward.
There is a desire for recreation
On the positive side, the worst seems to be behind us and, thanks in part to government grants to businesses and families in distress, there are conditions to look to the future with a hint of optimism.
It relies on so-called "revenge travel" the phenomenon whereby, as restrictions due to the pandemic loosen, people are urged to plan a vacation as soon as possible to compensate for long periods of forced home isolation. Possibly to a dream destination -- and a safe one at that.
There are conditions for the recovery of a crucial sector of our economy, which in any case is called upon to rethink its offerings to remain competitive in the face of rapidly changing demand. It is not a question of cost, since both capital and financial solutions are not lacking, but of changing perspective.
Behind them an annus horribilis
The year 2020 has gone down in history as a very bad year for the hospitality industry. After a positive start, the Covid-19 pandemic broke out, which zeroed in on restarts until late spring. There was a recovery in the summer, but the second wave of contagion hit in the fall and winter. The scenario did not change much in the first quarter of this year, with foreign arrivals plummeting 92 percent (according to a Federalberghi study) compared to the same period in 2019.
A situation that has had dramatic effects on industry players, who lost a total of 16 billion in sales between 2021 and the first three months of 2021. Wealth lost that means companies in crisis, people losing their jobs, and difficulty in moving forward.
There is a desire for recreation
On the positive side, the worst seems to be behind us and, thanks in part to government grants to businesses and families in distress, there are conditions to look to the future with a hint of optimism.
It relies on so-called "revenge travel" the phenomenon whereby, as restrictions due to the pandemic loosen, people are urged to plan a vacation as soon as possible to compensate for long periods of forced home isolation. Possibly to a dream destination -- and a safe one at that.
New strategies needed
It will also be important to invest in security, perhaps taking a cue from some countries that have implemented security protocols that have proven particularly effective. Of course, nothing will be the same as before: the attendance levels recorded up to the eve of the crisis will be seen again not before 2023 or 2024, and the supply side is being called upon to rethink raising the quality of service. The leverage of digitization can be supportive in this regard, especially in helping SMEs (which are the vast majority of companies in the sector) catch up with the gap accumulated over the past decade, and the PNRR (National Recovery and Resilience Plan) provides 8 billion euros in funds for the sector.
It is not just a matter of money, as the tourism sector in our country had structural problems even before the pandemic. In the words of the dossier edited by Agi and Censis, there is a need for "high-level redesign thinking," with the PNRR itself acting as a driver of change.
We need to improve the quality of extra-hotel offerings, overcome the seasonality of some destinations, act to make our destinations attractive to all peoples and cultures, and try to bring out even the lesser-known locations today. What is needed, in short, is a shared effort between institutions and businesses that looks at things to be done from a global perspective, starting with overcoming the bottlenecks that affect logistics, by land, sea and sky.
The role of land banks
In this scenario, the commitment of the cooperative credit banks that are members of the Iccrea Cooperative Banking Group should be noted, which leverage their historical proximity to the territories in which they operate to offer a series of targeted solutions to companies in the sector, in particular advisory services and financing to foster recovery and support this global rethinking operation of supply. Highlights include the plafond dedicated to the hospitality segment with CDP funding signed by Iccrea, solutions for enhancing the value of real estate, improving the organizational structure of companies, evaluating the entry of new generations into the company through the gradual generational transition, evaluating alternative financial instruments to bank financing, such as minibonds, and advising on extraordinary operations such as acquisitions and sales of companies or business units. The list could go on with ad hoc financing for the adoption of digital payment and reservation systems, as well as leasing and rental offerings and energy efficiency upgrades.
Initiatives, encapsulated under the brand In Tour - innovative tourism, which aim to enhance the value of accommodation facilities, improve business management with digitalization, and introduce innovative payment solutions. By turning to BCCs, operators and hoteliers can evaluate the most suitable forms of financing, including for extraordinary operations, as well as receive advice on assessing the ecological impact of facilities and proceed with energy efficiency works to reduce consumption.
The Iccrea Cooperative Banking Group brings together more than 130 Cooperative Credit Banks (BCC) present with more than 2,600 branches throughout the country. It has always stood by the side of businesses and households.
Advertising message with promotional purposes of Iccrea Cooperative Banking Group. The catalog of products and services falling within the offer on the "tourism" segment are offered by Iccrea Banca S.p.A., Parent Company of the Iccrea Cooperative Banking Group, and proposed/marketed by the Cooperative Credit Banks of the Group members. For the economic conditions and main contractual clauses of the advertised banking and financing products and services and for anything not expressly indicated, it is necessary to refer to the information sheets available on the website www.iccreabanca.it, as well as at the Branches and the website of the Cooperative Credit Banks.
