The Spanish hotel industry has predicted that this summer will be a tough one for the hotel industry. This is bad news, as the summertime is when the Spanish hotel industry makes a lot of their money. The prediction right now is that profitability will be down almost 15 percent compared to what it was at the same time last year. This prediction comes after the economic downturn continued to make hotels cut their rates for the first six months of 2009.

Joan Molas, the CEHAT president, said that these are very complicated times for all hotel industries. This was what he had to say during a conference, during which the confederation released a survey for its forecasts for the May through August vacation period. In the survey, almost 84 percent of the people questioned said that they expected profits to be 15 percent lower than last summer. This has to do mostly with the fact that hotels are going to have to adapt to the fact that foreigners are less likely to be traveling this year.

On top of all of this, 82 percent of all the people who took part in the poll said that they predicted numbers for overnight stays by foreign guests would decline. Another 70 percent said that all overnight stays, not just the ones from foreign guests, would be down compared to 2008. Another 60 percent believe that long term bookings, which are stays between one and two weeks, would also drop.

Molas went on to say that Spain is going to be looking at a very short high-season and a very long low-season. This is because the Spanish hotel industry is up against very stiff competition from such alternatives like Turkey, Croatia, and Egypt.

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