Rampant energy costs have quintupled due to the stringent control effect on gas sale by the Russian Federation and has brought the Italian economy to its knees.
Massimo Arcangeli, General Manager of ANEC Lazio , the national association that brings together the exhibitors of cinemas and theaters launched this alarm. “Small halls, but also big names in Roman theatrical halls, have to deal with out-of-control figures, and this makes it difficult to plan the winter of art and entertainment. The overall economic-generating sectors are experiencing a dramatic situation: We were emerging from the difficulties of the pandemic, but the increase in the cost of living risks bringing Italy to its knees again.”
According to Federturismo (the National Federation of Travel and Tourism), if the incidence of electricity and gas costs that hotels will have to bear on the turnover of 2022 will be 25%, compared to the previous 5%, the increase will be uneconomical and will force many hoteliers and restaurateurs to stop their businesses.
Realistic forecasts show that by September, many hotels, restaurants, and companies of all kinds will close their doors because of surge in energy costs. This is especially true in southern Italy with consequent national unemployment.
Tourism is already at risk in September, as noted by the Abbac Observatory (Association of B&Bs, landlords, and holiday homes) which, alongside the unsustainable increases in bills, raises the issue of inflation now at 8%, also linked to reduction of low-cost air connections, the increase in air fares, and the reduction of high-speed rail services.
The forecasts on incoming in the last month of the summer season (September) foresee the decrease and in some cases the zeroing due to the concrete possibility of having a halved accommodation demand due to the closure of tourism businesses.
The national president of ABBAC-FENAILP (Association of Bed & Breakfast Affittacamere [Landlord] Holiday Homes National non-hotel network and National Federation of Entrepreneurs and Freelancers), Agostino Ingenito, indicated that the energy price increases weigh on the economic management of the accommodation facilities. This forecast is confirmed by the growing demand from operators to bring forward the closure of some hospitality businesses with a seasonal license.
Energy costs in August in some cases exceeded 300% compared to the same consumption last year. There are already numerous structures that indicate non-sustainability to proceed in the coming months.
There is also a growing need for hotel operators to add certain percentages of energy consumption to the cost of accommodation for the use of air conditioners and natural gas for those who enjoy holidays in houses and apartments with kitchen service.
In conclusion, the month of September heralds the early end of the 2022 tourist season: another crisis for the entire tourism supply chain that adds to the 2022 incoming flow reduced to 6-7 weeks compared to 10 weeks in 2019 despite the pick-period, which sold out in hotels and high rates of holiday bookings, as communicated most recently by Confcommercio.
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