Employment

Nautical Sector losing €1million a day

Insiders say Nautical Sector losing €1 million a day | Jaume Morey

Majorca Daily Bulletin reporterBalearic Islands14/04/2020 10:16

The repair and maintenance of luxury yachts and ships has ground to a halt over the last 15 days because of the coronavirus State of Emergency and Astilleros Mallorca CEO, Diego Colón de Carvajal says the future looks bleak.

"The work forecast for the dry dock has been distorted and will cause a 70% fall in production,” he said. “Many specialists and personnel from Germany, the UK and the Peninsula went back home when the restrictions were introduced and now they can’t return until the State of Emergency ends. That affects production and turnover, but luckily our customers understand that this is caused by force majeure and we only hope that normality will return as soon as possible.”

The CEO of Port Technical Services, or STP, José María Campuzano says “it’s a disaster, because it also affects every Sector that’s related to ship repairs.”

Insiders estimate that the State of Emergency has cost companies in the Nautical Sector “more than €1 million a day in turnover.”

Both Colón de Carvajal and Campuzano agree that the Nautical Sector throughout Europe will be impacted.

“The yacht repair season is going to last a few months, but the seasonally-adjusted effect that this industry has on the economy as a whole will be lost,” they said.