J´Hotel and catering sector has broken the 100.000 million Euros turnover barrier

According to the last report by FEHR, the Spanish Hotel and Restaurant Federation, FEHR, the sector represents 7% of national wealth As regards employment evolution, it is predicted that over the next few years about 45,000 jobs will be created every year The sector is scattered, and this makes it necessary to take a series of measures to guarantee its development. FEHR is making a huge effort to technologize and innovate, in improving quality of supply, and creating continuous training policies.

Hotel and catering is still a strategic sector in the Spanish economic structure, with a participation in the national GDP of 7%, according to a recent report produced by the Spanish Hotel and Catering Federation, FEHR. The study also recognizes the need to apply different strategies, such as efforts at technologizing and innovation, as well as efforts to boost improvement in quality. This is the framework in which HOREQ 2005, the Hotel and Restaurant Equipment show, will be held. The Show is organized by IFEMA, and will take place, between19th and 22nd October at Feria de Madrid. It will allow professionals to find out about the latest equipment and technology to achieve this aim.

According to FEHR data, turnover in the sector in 2004 reached 101,000 million euros. For the first time it passed the 100,000 million euros barrier, of which 13,136 (13%) corresponds to hotels and accommodation; 18,777 (18.58%) to restaurants; 62,043 (61.41%) to coffee shops, cafeterias and bars. The remaining 7,086 million (7.01%) was generated by catering services and group concerns.

As regards generation of employment, the number of employees in the Spanish hotel and catering sector was 1.2 million in 2004, according to the EPA survey (Active Population Survey), which represents an increase of 28% growth compared with the year 2000. Apart from hotel personnel, the rest of the hotel and catering sector provided in 2004 with more than 930,000 jobs.

The FEHR foresees a rising progression in this sector. It is estimated that over the next few years the hotel and catering sector will employ 45,000 people a year.
. Analysis by business segments

1. The Hotel Sector

The hotel sector represents 1% of total Spanish Production, but it is a strategic sector due to its transcendence in the development of the tourist sector. According to the study, the number of establishments in 2004 reached 15,663 and the hotel capacity reached 1,445,743 rooms.

It is estimated that almost 50% of Spanish hotels are less than 20 years old. The Spanish Regions that have a greater hotel capacity are Andalusia, followed by Catalonia, Galicia, Castile-León and the Balearic Islands. At the other and of the scale are Ceuta, Melilla and Murcia Region.

2. The Restaurant Sector

Restaurants have maintained a strong growth, and at the same time, more and more people are eating out.

In 2004 the number of restaurants reached 66,259, which represents 0.7 per cent compared with 2003. According to regions, Catalonia, Andalusia, Valencia, the Canary Islands, Madrid and the Balearic islands have the most restaurants. Those regions with the fewest are Ceuta and Melilla, La Rioja, Navarra and Extremadura.

3. The Cafeteria Sector

There was a 2.7% increase in the number of cafeterias from 2003 to 2004, to present a figure of 14,044. Valencia, the Balearic Islands, Andalusia and The Canary Islands stand out as having many of these establishments. At the opposite are Navarra, Murcia, Extremadura and the Basque Country.

4. The Bars Sector

In total, in 2004 the number of establishments in the sector reached 240,493, which represents a slight reduction when compared with 241,196 in 2003. As regards premises, this figure fell by 1.1%, where as the number of companies fell by 0.3%.

As regards geographic location, it must be pointed out that the largest cities (Madrid, Bilbao, Seville, Valencia and Saragossa) account for 12.5% of this type of establishments, but this quota is decreasing in favour of coastal or mainland towns. In large cities, there has been more rapid growth in number of cafeterias and restaurants.

5. The Sector of Group Concerns

In this sub sector it may be seen that the increase in the number of canteen and provision of ready meals establishments has reached 4.6% and that of businesses has reached 5.8%. In total, in 2004 the survey recorded 11,362 premises, whereas the number of companies dedicated to this activity amounted to 9,813.


. A Sector with Problems to Overcome

The report also indicates that the hotel and catering sector is very scattered, given that there are some 300,000 companies and 330,000 establishments dedicated to this activity in Spain.

Prices are on a rising trend, especially in the restaurant, cafe and bar sector with a serious tendency towards inflation.

While it recognizes that it is a vital sector for the Spanish economy, FEHR affirms that it is imperative to apply different strategies of economic policy. Amongst these efforts we must mention technologizing and innovation, as well as improvement of training processes and boosting employment through continuous training. The sector also needs to apply cost management systems to control the excessive price rise above the CPI, and finally measures related to the quality offered.


. HOREQ

HOREQ, the Hotel and Restaurant Equipment Show, organized by IFEMA, which will take place between 19th and 22nd October 2005 at Feria de Madrid, will bring together professionals from the industry in order to present the latest trends in Hotel Equipment; Laundry and Cleaning Services; Vending; Commercial Equipment; Foodstuffs outside the home; Technologies; Furniture and Decorating; Linen and Textiles; Tableware and Home Furnishings; Bathroom items, leisure, relaxation and sports items, and other facilities and infrastructures. To complete this large and varied offer, HOREQ will host an extensive programme of conferences and activities.