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Spanish Strikes Put a Damper on Summer Kick-off

June 20, 2002

Thursday’s general strike in Spain has shut down services across the country, but its effects are being felt beyond the Iberian peninsula. The strike is also hitting an already hurting German travel industry hard.

Could Spain's strikes keep the Germans off its beaches?Image: AP

In the Teutonic mind, Spain evokes images of cloudless skies and kilometers of sun-drenched beaches, two rarities in Germany. That’s why Germans flock to the peninsula and its islands every year in droves. 10.4 million went last year, more than to any other country.

Image: AP

That number is why Thursday’s one-day strike in Spain (photo), which are targeting labor reforms by the government, has travel operators and tour agents thousands of kilometers away in Germany seeing red.

The work stoppage is costing them millions of euro, coinciding as it does with the beginning of the German summer holiday season and affecting the vacations of some 20,000 Germans. The strike has scared off some vacationers from Spain, and it has forced others to change their flight dates, at the tour operators’ expense.

Spain’s strike, which is expected to involve one-third of the work force, is aimed at the Spanish government. The unions are angry at new measures put into effect that would cut off benefits to the unemployed if they refuse a job offer that the government deems acceptible. The government says the reform will spur people to find jobs. Unions say those jobs will be mostly low paid and could be up to 50 kilometers (31 miles) away from their homes.

Since German travel and tour operators have known about Spain’s strike plans for weeks, they have taken appropriate measures. Since many of Thursday’s flights in and out of Spain have been affected – Germany’s Frankfurt airport cancelled 59 flights – tour operators either pushed vacationers’ flights up or back a day. Those who lost a day under the Spanish sun were reimbursed in most cases.

All in all, according to the Association of German Travel Agents and Tour Operators, the strike is costing the German travel industry millions of euros.

Already Hurting

The loss adds salt to the open wound of an already smarting industry, whose revenues have been dampened by the terrorist attacks in the U.S. on September 11 and by the world-wide economic slowdown. Revenues have fallen 15% this year alone.

"This year we have several things working against us," said Christian Boergen, Communications Director fo the Association of German Travel Agents and Tour Operators (DRV). "Easter was early this year, the Soccer World Cup has people glued to televisions, and the lead-up to elections in September mean a lot of people have to stay close to home."

Now Spain isn’t exactly helping the situation, he said.

The head of the Germany’s travel industry association, Klaus Laepple, even wrote to Spain’s Prime Minister, José Aznar, requesting the government do all it can to limit the impact of the strikes.

"Nothing would be more fatal than to see these strikes damage Spain’s reputation as the world’s most popular vacation destination," wrote Laepple in the letter.

Nor would it be very healthy for Spain. While some Spaniards might look with disdain at the German hoards invading their beaches and islands, they enjoy the economic advantages the pale-skinned tourists bring with them. It is estimated that Germany contributes more than 3.5 billion euros to the Spanish economy a year.

"It would be in Spain’s best interests to limit the impact this strike has on travel, seeing how the country benefits from Germans’ love of the sun," said the DRV’s Boergen.

Nor would it be very healthy for Germany’s many smaller travel agencies, according to the DRV. The overall drop in travel has put many of them on the edge of bankruptcy already. If the situation doesn’t improve soon, hundreds could find themselves closing up shop.

Changing Destinations

The strikes in Spain might well speed up a trend already noted in the industry towards booking cheaper holidays. Even before the strikes were announced, bookings to Spain were already down from the year before.

"People are looking for cheaper alternatives like Romania, Bulgaria or Croatia. " said DRV Communications Director Boergen. "When you’re worried about your jobs and the poor economy overall, you’re not going to book an expensive package trips to Spain or the Canaries."

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