• Mon. Oct 18th, 2021

Volume Of Loans Granted To Hotel Industry In Spain Grew By 30% In 2020

ByRoger Fisher

Jul 21, 2021

The amount of loans granted to Spanish companies dedicated to the hotel industry increased by 30% in 2020 compared to the figure registered in 2019, reaching 31,937 million euros , according to the data collected in the Central Risk Information Report 2020 that has been prepared by the Bank of Spain.

In addition to hospitality, the increases in credits granted to the Public Administration stand out, with almost 28% more than in 2019 , and to artistic, recreational and entertainment activities, with almost 24%.

In total, Spanish companies had a credit volume of 523,987 million euros at the end of 2020, 7.06% more than in December 2019, according to the report published this week by the Bank of Spain.

The hospitality industry is the sector that recorded the greatest increase in the amount granted, with 31,937 million euros (compared to 24,487 million at the end of 2019), followed by the Public Administration, which went from 2,082 million euros in 2019 to 2,662 million in 2020.

In the case of artistic and entertainment activities, it went from having a credit granted amounting to 3,860 million euros in 2019, to 4,781 million at the end of 2020 .

The Bank of Spain explains that this behavior is conditioned by “the Covid-19 crisis and by the support measures put in place by the Government to mitigate its impact.”

On the other hand, wholesale and retail trade was the one that retained the largest amount of credit granted, 83,815 million euros, 10.93% more than in 2019 ; It is followed by the manufacturing industry, which had an increase of 7.95% to reach 83,723 million euros, and construction, which added 81,116 million euros in loans, 2.65% less than in 2019.

The TSJA lifts the precautionary measures on hours and capacity in the hospitality industry
The TSJA lifts the precautionary measures on hours and capacity in the hospitality industry

By company size, large companies represent 45% of the amount of risks, while micro companies were debtors for 22% of the declared credit .

Two trillion in loans
The volume of credit contracted by credit institutions with debtors in Spain in December 2020 stood at two trillion euros , 13.2% more than at the end of 2019.

Banco de EspaƱa points out that the distribution of this evolution was “very uneven” , according to the institutional sector. Thus, while financial institutions registered an increase of 56.1%, growth for Public Administrations and companies was lower, of 10.1% and 7.1%, respectively). For their part, households reduced their credit by 0.9%.

In addition, households represented 34.8% (689,452 million euros) of the volume of credit granted, followed by companies, which accounted for 26.5% (523,987 million euros).

Three autonomous communities, Andalusia, Catalonia and Madrid, accounted for 56.4% of the volume of loans . In a second group are Valencia and the Basque Country, with 15%. In the remaining autonomous communities and in the autonomous cities of Ceuta and Melilla, 28% of the remaining credit was accounted for.

In addition, the highest growth in risk volume in 2020 occurred in the Balearic Islands, with 8.2% more, and the Canary Islands, with an increase of 3.2%, reflecting the strong impact that the Covid crisis had there. 19.

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