A “transition” year. This is how Javier García, Vice President of Magic Costa Blanca, describes fiscal year 2021, when the hotel chain managed to regain about half of the turnover it lost the previous year due to the pandemic and cut numbers by 80 percent. Percent reds causing businesses to close. A “V” recovery that continues into 2022 and is expected to end with even higher volumes than 2019.
By the end of the year, accounts deposited in the Commercial Register by Industrias Hoteleras del Mediterráneo SL, the company responsible for the management of the chain’s hotels, show that the company achieved a turnover of 39.9 million euros last year; this is 164% more than the previous year. 2020 is when tourism businesses have to settle for a meager €15m due to the closures and restrictions they have been subjected to.
The gradual lifting of restrictions and the massive arrival of domestic tourists allowed the situation to begin to improve in 2021, although the situation was far from normal and halfway to recovering the 71.7 million turnover it registered in 2019. Among other reasons, because the chain chose to keep some of its hotels it used to reform, such as Fenicia or Magic Villa in Benidorm, closed, and the rest did not operate normally all year.
In any case, the improvement in revenue last year served to mitigate the substantial losses incurred in the previous year. In this way, the hotel chain went from the red figures of seven million euros to a negative result of 1.3 million, which the large volumes of reserves the company had accumulated allowed to absorb without problems.
Rising costs
According to García, here are some red numbers that the Benidorm company plans to completely outrun this year, in any case. The businessman especially points out that the chain’s turnover in 2022 will be even higher than the volume it reached in the last year before Covid, due to the increase in prices applied to offset the increase in recorded costs. , due to the increase in energy and all kinds of procurement costs. A price increase that customers accept in the current context.
According to Javier García, this evolution will also allow profits to return to levels similar to those in 2019. In this way, the hotel chain follows the path reflected by the balance sheets of the majority of firms in the tourism sector. It quickly recovered as the borders reopened and visitors showed their loyalty to the Costa Blanca.
Magic currently operates 11 complexes with approximately 2,800 rooms in Benidorm, l’Alfàs del Pi, Finestrat and Gandia. In addition to Fenicia, which is still under construction, the group plans to reform Villa de Benidorm from next fall. Looking to 2023, Javier García assures that expectations remain high as the reserve level is improving at a good pace.
Source: Informacion
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