Report 26/05/2020
First clues of recovery but only in the short term. More for the business sector rather than the leisure one.
Milan: first clues of recovery but only in the short term.
The reopening of 18/05 and the latest comforting data on contagion spread in Lombardy (the region where Milan is located) are producing positive effects. The confidence in the very short term is slightly but steady recovering, and the number of hotels already open is marginally increasing (AB1_day), even if they represent just 35% of the total number of hotels. The number of hotels offering rooms from mid-June (AB14_days) increases at a higher rate, reaching 60%. The tourism performance in June will sow the seeds for medium and medium-long term decisions. The number of hotels posting offers for the end of June (AB28_days) and mid-July (AB56_days) ranges between 70% and 80%, hinting possible rapid returns to full production. Much will depend on the government's decisions on reopening Lombardy’s border from the 3rd of June (date established for the next easing of mobility limitations) and on the performances of leisure tourism in early June.
Venice: awaiting the reopening of regional borders.
A greater clarity on the protocols to be adopted and on the plans for easing mobility restrictions has infused confidence in the hotel sector of Venice. In general, the number of hotels offering rooms from June is increasing, also because it is likely that the mobility between Italian regions will be allowed from June the 3rd. The continuous decline of hotels offering rooms for the end of May (AB1_day), about 20% of the total number of hotels, confirms that Hotels do not expect the return of Italian and, perhaps, foreign tourists before the beginning of June. When other advance booking windows are considered, the Hotel Activity index increases from 5 (in mid-June, AB14_days, AB28_days) to 10 percentage points (AB56_days, AB140_days). The uncertainty about evolution of tourism demand and the time and investment required to apply the guidelines for reopening the hotels are delaying the start of the summer season which, nevertheless, will start again.