Dynamic Advertising banned in San An

Dynamic Advertising banned in San An

In recent weeks a host of changes have been announced in San Antonio, one of which has been to suspend dynamic advertising within the resort for the 2016 season.

This covers legal PR’s (public relations outside bars, clubs and restaurants) street ticket sellers and the colourful club parades which take place around the Sunset Strip and the West End.

There has been much celebration in some quarters in response to this decision and much resentment in others but today we are going to look at purely the potential financial impact of the decision for San Antonio, its businesses, the Council and the Government.

We did ask the Council for clarification on the number of licences issued in 2015 but so far have not received a reply, so instead (or until they respond) we are using a figure of 100 for two reasons:

  • Firstly in speaking to various businesses this number is one everyone seems comfortable with.
  • Secondly it makes the maths a lot easier to understand.

Now, each licence / jacket issued costs 2000 euros per year  which is paid to the local council.

That’s 200’000 euros in lost revenue to the Council in 2016.

[adinserter block=”10″]

Workers

Your average summer worker arrives fresh faced and bushy tailed into San Antonio usually late April to mid May and, on average, brings with them 1750 euros to help get them started.  To cover their first month’s rent, first few week’s food, travelling expenses etc.

They then find a job, not necessarily a great job, but a job nevertheless that pays around 40 euros per day.  This is enough to keep them going and to have an amazing summer. Per month they will earn 1120 euros.

They work for 4.5 months, again on average, but with the season the way it is this is a comfortable average.

On average, each person coming for a summer season earns 5040 euros. This is then spent on rent, food, travel as well as those all important days and nights out.

Add this to what they initially brought with them to the island of 1750 euros and you have a total of 6790 euros per person.

Although they have had an amazing summer, I would imagine very few take much if anything home with them but for arguments sake we shall say they take home 15% or 1018 euros.

This leaves 5772 euros which is spent across the summer in San Antonio.  And after speaking to many workers it appears that workers rarely travel out of the town.

For the 100 workers this is over 577’000 euros now not spent in San Antonio, that’s 577’000 euros not being poured back into the local economy.

100 less jobs = 100 less rents + 100 less people eating 7 days a week.  That’s 100 less people paying taxi fares or moped hire and 100 less people drinking and partying all summer long.

Employers

Now, onto the employers who each pay around 550 euros per month in social security to the Government per employee.  Across the 4.5 month’s season that is 2475 euros.

Now each employee does have the right to claim Paro/Ayuda or the Dole to you and I during the winter season but being seasonal workers most do not claim it.  However, again for arguments sake we shall say 20% do.

Out of the 2475 euros paid into the social security system 495 euros is paid out in Dole money over the winter leaving 1980 euros in the Government system.

From our 100 seasonal workers that’s also 198’000 euros less in the Government coffers.

577’200 euros in income has just been effectively wiped out from the local economy and and will be lost from San Antonio’s income during 2016.

The Council and Government through the licences / jackets and social security have also just lost 398’000 euros in revenue income.

[adinserter block=”10″]

Conclusion

That’s close on 1’000’000 (1 million)  euros that has effectively been lost from the economy of San Antonio for 2016  and this doesn’t even take into account any second tier taxes paid by those who earn an income from rents or other businesses that serve the seasonal workers and their spending within the town.

It does beg the question will this loss of income actually help San Antonio in the long term?

Less money in means less money being spent on security, policing, cleaning, promotion etc basically all the things San Antonio needs to address to make it more appealing to a wider and more diverse tourist model.

So has the move to ban legal PR’s in San Antonio been a costly mistake?

My thanks go to Nathan, Amanda and a host others for the information included to make this article as accurate and as fair as possible.

[adinserter block=”5″]