Escarrer (Meliá): “If tourists fall for prohibiting drunkenness, it is a fall that interests”

Gabriel Escarrer, CEO of Meliá Hotels International, is clear that the future of the Spanish tourism sector is facing the challenge of sustainability, digitalization and the increase in profitability and quality of the offer. “I have been saying for many years that instead of looking at the number of tourists arriving in this country, we look at the expense they generate, the profile they have or how sustainable it is,” said the senior executive in an interview with this newspaper during the Fair of Fitur. In order to achieve the objective of entering more with the same or less tourists, the different destinations have redoubled their fight against the “lack of control of illegal tourist flats” (in Mallorca and Barcelona there is a decrease in saturation and turismophobia) and they are putting on the table measures such as prohibiting drunken tourism in the Balearic Islands.

What do you think of the law that prohibits drunken tourism?

For me it has been a great success. It has been an initiative of the Minister of Tourism of the Balearic Islands and different businessmen, among which we include ourselves, since there is a certain tourism that it is better not to have it. Drunk tourism, of excess, which in some way is degrading to women, does not take us anywhere, it does not interest this country. The Excess Law will be extremely positive and we will be able to change the profile, which will allow us to go to the segment of congresses, conventions, managers, families …

Could the law hamper the arrival of tourists to the islands and the economy?

Having fallen is a fall that interests us. In the medium and long term everything is good. In fact, there is also a lot of complementary offer that is going to suffer since it is focused on this type of tourism of riot, mamading and all those lively that make you wonder how people can do so much the ridiculous … to me it is a tourism that It brings nothing to me.

The mayor of Palma commented during the Exceltur Forum that they had banned more hotels and tourist flats. What are the consequences of these measures?

The regulations approved to limit tourist floors have been noted. The problem is that it has had to put patches before an overflowing growth. It has been necessary to put a stop, also to the hotels, because there are places that have come to overcome and with a lot its load limit and it is necessary to say here we have arrived. In the short term I think it is adequate but in the medium and long term hotels have to be opened.

And on the subject of floors?

It has been noticed and much. Especially in the fight against this overcrowding.

Also during Exceltur's day you warned of the dangers of touching labor reform and the SMI … What risks do you mean?

Entrepreneurs are in favor of redistributing wealth and we have somehow demonstrated it in the latest negotiations of the sector agreements. I give as an example the Balearic Islands, where wages have risen by 17%. For eight consecutive years we have been the engine of Spanish growth but we have been two years and, unfortunately, it seems that it will be the case in 2020, in which tourism will grow but inferior to the growth of the economy. We estimate a 1.5% rise in tourism GDP when the forecast for Spain is 2 or 1.9%. I am worried about ceasing to be a locomotive of the country's growth and in the last two years we have seen how tourism productivity has been reduced because social costs have increased more than income and these measures can undermine the competitiveness of Spanish companies. I am concerned that in the face of already significant salaries, these increases that speak of up to 1,200 euros of the SMI for certain low-qualified positions can further undermine the competitiveness of the sector. The increases have to be sustainable and be accompanied by an improvement in productivity because if not, they will not be sustainable.

And the labor reform?

Yes, because there are certain limitations that are wanted and the reality in Spain is that many hotel plants have a seasonality problem. I would like to have a much more stable job, but if this forces me to turn many of my workers into permanent jobs when I have opened the hotel for eight or nine months, it is completely unfeasible. Those are the aspects in which I ask that we not go crazy and I believe that the Government begins to make certain nuances.

“The tourism sector has two important challenges: sustainability and climate change and digitalization”

How can it affect the Chinese virus?

I understand that after the climate change, what can affect the sector the most are the pandemics, although now we are far from suffering one. It is too premature. I saw the devastating effect that Ebola had when there was an infection in Spain and people lost a little north. I hope it doesn't happen.

What is your expansion plan?

At the expansion level, this year 2020 we will open 23 establishments of which 11 in Europe and the Middle East, nine in Asia, two in America (Cuba and Mexico) and one in Barcelona. We follow the average of a hotel every two weeks.

What challenges does the sector face?

The tourism sector has two important challenges: sustainability and climate change and digitalization. There are many tourist groups that will not be able to undertake these ambitious digitization plans, which will lead to a sector as atomized as the Spanish will consolidate. But, more than shopping for hotels or mergers, there will be many opportunities for these independent hotels to join groups like ours, who have worked on their brands and distribution. There will be many opportunities for management or franchise contracts.

Meliá will continue to bounce in the stock market according to Berenberg analysts: they recommend buying