Slovenia: The tourism sector suffers the consequences of the Covid-19 pandemic

Slovenia: The tourism sector suffers the consequences of the Covid-19 pandemic

Slovenia authorities reported 12 new coronavirus infections for Sunday and no Covid-19 deaths. The latest government figures show the 7-day average of new cases fell from 37 to 32 and the 14-day incidence per 100,000 population dropped by one to 35.

But, the consequences of the pandemic up to now greatly influence life in almost all areas of the economy. The impact on the hospitality and tourism sectors was devastating. Fresh statistics show turnover falling by a third in the hospitality industry last year as travel agencies and tour operators saw their revenue slashed by 77%.

Data released by the Statistic Office show a total of 150,324 predominately market-oriented enterprises were active in Slovenia in 2020. They generated a combined EUR 98.3 billion in turnover, down 6.3% compared with the year before.

Sales revenue decreased the most in the hospitality sector where 12,588 active businesses generated EUR 1.5 billion in turnover, 34.4% less than the year before, as the number of employees shrunk by 6.1%.

The bulk of sales revenue was generated by companies in manufacturing and trading, which also have the highest share of employees.

Last year, there were 0.9% more active enterprises in manufacturing, which posted 4.7% less in turnover but generated 1.9% more in value-added.

The number of active businesses involved in trade dropped by 1.5% last year and their sales dropped by 8.2% to EUR 34.1 billion as the value-added declined by 3.5% to EUR 4.6 billion.

Meanwhile, sales grew last year in construction, real estate and professional, scientific and technical activities.

There were 664 new active companies in construction last year. Just over 20,000 companies generated 0.6% more in revenue and 7% more in value-added than the year before.

Sales in the real estate business were up by 3.6% and the value-added rose by 4%. A total of 6,285 people worked in the 4,118 companies in the sector, 2.3% more than the year before.

In the sector termed by the statisticians as professional, scientific and technical activities, 36,749 companies were active last year, which accounts for a quarter of all active companies. Turnover of those companies increased by 0.6% and they generated 2% more value-added. Employees in those companies represented 9.7% of all employees as their number increased by almost 2%.

Enterprises supplying electricity, gas, steam and air conditioning, and those supplying water, sewerage, waste management and remediation activities saw their turnover drop but they generated 12.7% and 10.7% more in value-added, respectively.

The pandemic affected the business of travel agencies and tour operators, where 1,004 companies were active last year. Their turnover decreased by 76.9% compared with 2019, and the value-added was down by 75.2%.