Hotels in Romania record all-time low figures as COVID-19 and consequent government restrictions sweep travel demand away

The COVID-19 had a very rapid and drastic impact on the Romanian hotel sector. According to an industry survey, 64% of hotels were already impacted within the last week of February, when the virus was confirmed to have reached Romania. With the state of emergency having been declared on the 14th of March, the number of hoteliers impacted increased to 98% in the 3rd week of March, ultimately reaching 100% in April.

As international demand disappeared, the occupancy of Romanian hotels rapidly decreased to single digit numbers, causing a significant loss of income. The loss in demand resulted in average losses of EUR 25.9 per room per day in April 2020, indicating a 178% decline compared to the same period in the previous year. Recent STR reports reveal a turbulent H1 for the hospitality sector with YTD June 2020 figures recording occupancies of 26% across Romania and RevPAR levels of EUR 17, representing a 66.1% decrease compared to 2019.

Following governmental orders to temporarily close borders and ban public gatherings, the vast majority of hotels across Romania closed. According to the survey, 75% of hotels were closed by the end of March. With restrictions being eased many hotels are re-opening again but there is still 2% of hotels that are only planning to open next year.

In order to deal with this unprecedented crisis, hoteliers took drastic measures to reduce their costs, including staff lay-offs. According to the survey some 29% of labour was made redundant already. Given the situation has not improved meaningfully, urgent help is needed to avoid further impact on employment in hotel sector.