Dire Straits

The media continue to be preoccupied by the question of whether Spain will ultimately need a full bail out. It certainly needs something. We are at the beginning of August which is the busiest of the holiday months, the time when local businesses must do well. And this year? In April the large hotel in the centre of the village reopened under new management following an extended period of closure. The new team had a properly worked out business plan and sufficient confidence in it to enter a 5 year lease agreement with the building's owners. Over the next four months they rapidly built up an enviable reputation for quality in both the hotel and its restaurant; accommodation was booked out for August and there were good bookings for later in the year. On 31st July, they closed down. The building's owners are on the verge of bankruptcy at which point the hotel will be repossessed by the bank, leaving the lessees nowhere to trade from. On the same day we met a friend of ours on the way to formally close his shop, and he also told us that the bar/refreshment kiosk in the Parque de Andalucía has closed. The holidaymakers are now swarming into the village but at least three valuable local businesses will not feel the benefit.