Hotel industry collapse drags down tourism service providers in La Guaira

Economy

The Daily Journal. — The destruction and shutdown of hotel infrastructure along Venezuela’s Central Coast following the twin earthquakes measuring 7.2 and 7.5 have begun to trigger a chain reaction across the region’s economy. Twenty days after the disaster, the loss of lodging capacity now threatens the survival of thousands of self-employed workers and small businesses that rely entirely on visitor flow.

Alberto Vieira, president of the National Federation of Hotels of Venezuela (Fenahoven), explained that the association has five affiliated hotels in La Guaira, offering nearly 320 rooms.

During a radio interview, Vieira reported that “one of our affiliated hotels collapsed completely.”

Although the collapse did not trap anyone inside at the time, the business leader lamented that “we did lose talented professionals who worked there.”

Structural damage and widespread job losses

The economic crisis in La Guaira extends far beyond the collapsed hotel. The federation’s remaining four hotels along the coast suffered damage that does not compromise their long-term viability, but the buildings are unable to operate. Reports indicate that walls have fallen, and hotel lobbies lie in ruins.

This technical shutdown has abruptly broken the regional tourism value chain. Vieira warned that authorities and the private sector must also focus on more than 1,150 tourism service providers—including transportation operators, tour guides, restaurants, and beach businesses—that work along the coast. Together, they employ about 7,650 people who have lost their primary source of income because guests have disappeared.

Tourism vanishes in the short term

Historically, the Central Coast served as Venezuela’s leading hotel destination, maintaining strong occupancy rates year-round.

“For us, La Guaira consistently led the country in hotel occupancy. Hotels always stayed above 50 percent occupancy, and during peak season they could reach 90 percent,” Fenahoven’s president noted.

Now, however, the collapse of key infrastructure and the damage to public utility networks have dramatically altered the region’s economic outlook for the second half of the year.

“In the short term, we know tourism will not return to La Guaira,” Vieira said. He added that one of the industry’s greatest challenges will involve securing working capital to restore hotel facilities while operators generate no revenue.

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