British businesses operating on Spain’s Costa del Sol are fearing Spain will be closed for the winter season
Nerves are now wrangling amongst British ex-pats on Spain’s Costa del Sol as they fear the worst after a financial disaster so far for the 2020 period.
Amongst the thousands of British ex-pats who apply their trades on the normally vibrant Costa del Sol after leaving the shores of Britain, the reality is setting in hard as the streets are empty of tourists, hotels are closed or closing up and businesses each day fail and close.
On Spain’s Costa del Sol each day, it’s reported that at least 3 ex-pats British owned businesses collapse as the shutters come down for good with many returning back to the UK attracted by unemployment benefits.
The remaining business owners who have survived so far are now though really feeling the nerves wrangle as the future looks very bleak indeed, a walk along the Costa del Sol at night clearly demonstrates that as the remaining open businesses – simply have no customers.
Some restaurants, large ones too, are serving just one table a day as tough regulations dry up custom.
The majority of businesses and workers are dependent on the British tourist, without them there looks no future apart from closing and covering rents until the new year as Spain battles a second wave of the Coronavirus.
The heart-rendering situation for much British business owners now without cash reserves, who aren’t in the position of seeing out the winter period by simply locking up, is placing their businesses on the market for resale at vastly reduced prices, although even then buyers are not coming forward fast enough.
If as many predict, Spain closes basically for winter, the situation will get even worse and see the largest recession ever seen on the Spanish coast according to business analyst Stephen Williams.
” It’s very possibly going to be a very nasty cycle, looking at the current situation, it’s going to be very tough, very very tough, unless something breaks soon, you don’t need to be an expert to realise, no customers, no trade”
The only survival tactic in that scenario is to close, hang on until customers return to which they will eventually, but to hang on you need those cash reserves and unfortunately many haven’t after a tough summer”
“Opening a business here, when there are no customers to serve is a financial recipe for disaster, especially for those who have brought back staff off the ERTE system, overheads and staffing costs will far outweigh takings and only make matters far worse for those trying to stick it out, my advice to my clients here, is if you have reserves, close, rather than make a bigger hole in your finances,” Williams said.
It’s been a double whammy for many British traders, who have received blow after blow in 2020, firstly they were forced to close down for over 8 weeks as Spain entered the State Of Emergency and when they finally re-opened were hit by UK Prime Minister Boris Johnson advising British nationals not to travel to Spain and setting quarantine regulations on return.
Restaurant and bar owner Neil Phelps who operates in Spain’s Marbella tells of his dilemma and thoughts to Global247news as he prepares to close for winter:
“It’s the end of August and there is no point in staying open through the winter unless something drastically changes, it’s cheaper to close for winter than stay open, it’s as simple as that really, thankfully I do have enough cash reserves built up to see us through to next spring at least after trading well the last several years”
“We need to face the facts – there aren’t going to be many customers at all, especially whilst Spain’s government battle a second wave that many predict like the flu, will get worse in the winter colder months, I can’t see Boris Johnson lifting the restrictions either until at least Christmas at the earliest, the Costa del Sol is going to be a very different place this year, basically closed as many are going to do the same as I – lock up and ride it out”
Although further down the coast towards Malaga, Timmy Collins tells of his fears and plight: ” I can’t afford to stay open and I can’t afford to close, If Spain closes for winter then It will just put off others prepared to put up with the restrictions and they will go elsewhere or just remain at home, there’s not enough business to go round at the moment from local residents, Boris Johnson is killing his fellow countrymen living here in Spain, he needs to have a change of heart”
“If Spain basically closes for winter hundreds of us are doomed” he finished.
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