The Hotel Association of Rosario in Argentina (Aehgar) warned that we must be alert for the low profitability that the sector is going through.
"The picture is truly worrying. If this situation persists, many colleagues will change their category," admitted Alfredo Angiulli, vice president of the entity.
As confirmed by the union in 2012 , hotel occupancy in the city does not exceed 42%, and in order to reach the break-even point it should be 50%, this covers the costs of personnel, energy and taxes.
In a statement the Aehgar announced that the boom in the construction of enterprises will end up affecting the overall profitability, "there is an overinvestment in the sector. We are experiencing a scenario of increasing labor costs, high tax pressure and inflation of 25% per year that eats away at the low profit obtained."
The statement strongly criticized the false advertising that is being made to the destination, generating an erroneous perception of the situation of the same: "One of the mainstays of the tourist Rosario, which are the lodgings, see that their business does not prosper as indicated by the opportune phrases of a reality that is not such."
In Rosario there are 1,800 establishments and it is believed that many do not comply with current legal regulations.
For entrepreneurs in this economic area, the crisis is explained by a sum of factors: from the cooling of the economy, high costs, tariffs that have not been updated, to the unfair competition that has been generated.
They also assured that "the rates are the same as ten years ago in constant currency, while the salaries, in the same period, doubled."
