Page 114 - Economic report 2020

LEVEL OF OCCUPANCY IN COMPARISON WITH THE SAME PERIOD
OF THE PREVIOUS YEAR - HOTEL SECTOR Chart 12.8

Balance: Difference between opposing responses (positive and negative), as a percentage.
Source: Chamber of Commerce, Industry and Services of Andorra.

In this context, businesses’ opinions about business activity show the most optimistic scenario
since the start of the pandemic, with 68% of businesses defining the business situation as good
on average for the whole of 2022.

Geographically speaking, the improvement in business activity was noted in the central hubs of
the country - with a higher concentration of commerce - but also more strongly in the parishes
that are most oriented towards nature and mountain tourism, among which the good results of
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Canillo, Ordino and La Massana stand out.

The level of hotel occupancy rebounded The average level of occupancy saw an increase
in the second half of the year. in the second half of 2022, compared with the
same period in the previous year, thanks to a
more brilliant summer season than expected
(between 1 June and 30 September, there were 39% more tourists than in the previous summer)
and also very good behaviour in autumn escapes, long weekends and the Christmas holidays,
especially visitors from nearby.

Andorran economy: developments in the main sectors | XII. Services
In the opinion of businesses, sales prices have continued to increase overall – 54% of hotels
state that they raised prices - and in the labour market, the process of job creation was very
notable, even passing pre-pandemic levels. As for factors limiting business activity, the rising cost
of products and supplies remains the main obstacle, and is, moreover, an aspect that increasingly
concerns businesses (89% of hotels indicated it in the second half, contrasting with 79% in the
first half). This is followed by rising operating costs, up by 21 points in the second half, to 81%,
a record percentage that had never been reached before. After these factors come the lack of
qualified staff, which is also gaining importance as an obstacle to activity, with 72%, the highest
proportion since 2017.

As for the distribution of clients per country of Catalonia is still the main source
origin, Catalans are still the main clients, with of visitors, with 42% of travellers
the percentage rising to 42% of the total in the
second half of 2022, followed by clients from in the second half of 2022.
the rest of Spain, representing 26%. For their
part, French travellers are third in the ranks, with 20% of total clients, ahead of clients from other
more distant destinations, with 11% of the total.