1 00:00:01,920 --> 00:00:07,320 Speaker 1: Welcome to Prognosis. I'm Laura Carlson. It's day one hundred 2 00:00:07,360 --> 00:00:11,440 Speaker 1: and sixty three since coronavirus was declared a global pandemic. 3 00:00:12,360 --> 00:00:17,480 Speaker 1: Today's main story a coastal tourist town in Spain one 4 00:00:17,600 --> 00:00:22,720 Speaker 1: specialized in packing beaches and nightclubs, appealing to young people 5 00:00:22,760 --> 00:00:26,480 Speaker 1: on a budget who piled themselves into cramped hotel rooms. 6 00:00:27,720 --> 00:00:31,000 Speaker 1: How does a place like that reinvent itself in the 7 00:00:31,160 --> 00:00:36,640 Speaker 1: age of social distancing? But first, here's what happened in 8 00:00:36,760 --> 00:00:47,440 Speaker 1: virus news today. Europe is facing a resurgence of coronavirus infections, 9 00:00:48,400 --> 00:00:52,240 Speaker 1: but the region's leaders don't have much appetite to return 10 00:00:52,280 --> 00:00:55,920 Speaker 1: to the stringent restrictions on movement that helped control the 11 00:00:55,960 --> 00:01:01,600 Speaker 1: pandemic in March and April. On Thursday, German Chancellor Angela 12 00:01:01,640 --> 00:01:06,280 Speaker 1: Merkel urged European leader's stork together to avoid reviving lockdowns, 13 00:01:07,120 --> 00:01:12,360 Speaker 1: calling instead for unified action. The uptick in cases in 14 00:01:12,400 --> 00:01:16,360 Speaker 1: recent weeks has been blamed on social gatherings and travelers. 15 00:01:17,200 --> 00:01:21,920 Speaker 1: Targeted containment measures like clamping down on nightclubs and mandating 16 00:01:21,959 --> 00:01:26,440 Speaker 1: masks have yet to show much of an effect. Hong 17 00:01:26,560 --> 00:01:29,920 Speaker 1: Kong will kick off a campaign to test its entire 18 00:01:30,040 --> 00:01:35,160 Speaker 1: population for the novel coronavirus on September one. It's the 19 00:01:35,319 --> 00:01:40,959 Speaker 1: first such effort attempted outside of mainland China. Hong Kong's 20 00:01:41,000 --> 00:01:44,360 Speaker 1: chief executive Carrie Lamb said the mass testing blitz will 21 00:01:44,440 --> 00:01:47,400 Speaker 1: last as long as two weeks and will be aided 22 00:01:47,480 --> 00:01:51,560 Speaker 1: by China. Unlike similar drives in the Chinese cities of 23 00:01:51,560 --> 00:01:58,960 Speaker 1: Wuhan and Dalian, this will be voluntary. Finally, economist Nuriel 24 00:01:59,040 --> 00:02:03,120 Speaker 1: Roubini said today that the global economy faces a risk 25 00:02:03,360 --> 00:02:07,320 Speaker 1: of a slow recovery or even another slump unless a 26 00:02:07,360 --> 00:02:12,359 Speaker 1: vaccine is found. Speaking on Bloomberg Television, Rubini predicted that 27 00:02:12,400 --> 00:02:15,600 Speaker 1: the shape of the recovery, which some predicted to be 28 00:02:15,680 --> 00:02:19,320 Speaker 1: a V a sharp uptick after a sharp drop, could 29 00:02:19,360 --> 00:02:22,240 Speaker 1: take the shape of a U or even a W. 30 00:02:23,600 --> 00:02:27,519 Speaker 1: He's stressed that finding a vaccine and more government stimulus 31 00:02:27,919 --> 00:02:32,640 Speaker 1: is necessary for a strong recovery. Rubini is famous for 32 00:02:32,760 --> 00:02:36,320 Speaker 1: having predicted in two thousand six the collapse of the 33 00:02:36,360 --> 00:02:45,120 Speaker 1: housing market in the US and now for today's main story. 34 00:02:46,320 --> 00:02:49,800 Speaker 1: One thing the pandemic seems to have rendered obsolete, at 35 00:02:49,880 --> 00:02:54,520 Speaker 1: least for now, is mass tourism. Beach towns lined with 36 00:02:54,560 --> 00:02:58,680 Speaker 1: hotels that boast hundreds of rooms are struggling in a 37 00:02:58,800 --> 00:03:04,000 Speaker 1: socially distanced age. One tourist hotspot in Spain that once 38 00:03:04,120 --> 00:03:08,320 Speaker 1: drew throngs of young people is trying to reinvent itself 39 00:03:08,480 --> 00:03:14,200 Speaker 1: for a future of tightly controlled and intimate trips. Jeanette 40 00:03:14,240 --> 00:03:32,560 Speaker 1: Newman reports the sound of summer. Those waves are rolling 41 00:03:32,560 --> 00:03:35,200 Speaker 1: onto a beach in Benny Dorm, a town on Spain's 42 00:03:35,200 --> 00:03:39,640 Speaker 1: Mediterranean coast, from June to August. Year after year, there's 43 00:03:39,680 --> 00:03:42,200 Speaker 1: barely a free inship sand to be found on this beach. 44 00:03:42,800 --> 00:03:47,080 Speaker 1: Sunbathers lineup towel to towel for miles. Crowds swell up 45 00:03:47,080 --> 00:03:51,000 Speaker 1: and down the beach front promenade. Skyscraper hotels crammed with 46 00:03:51,080 --> 00:03:55,680 Speaker 1: hundreds of thousands of visitors tower overhead. The cityscape is 47 00:03:55,680 --> 00:03:58,440 Speaker 1: the iconic image of the summer high season in Europe. 48 00:03:59,040 --> 00:04:02,240 Speaker 1: Even though many people, particularly in the US, I've never 49 00:04:02,280 --> 00:04:05,560 Speaker 1: heard of Benny Dorm, It's among the most popular destinations 50 00:04:05,560 --> 00:04:08,800 Speaker 1: in Spain. That's no small feet. Spain is one of 51 00:04:08,800 --> 00:04:12,280 Speaker 1: the most visited countries in the world. Benny Dorm started 52 00:04:12,280 --> 00:04:14,880 Speaker 1: to become a hot spot decades ago. It was among 53 00:04:14,920 --> 00:04:19,000 Speaker 1: the initial destinations in Europe for package holidays affordable trips 54 00:04:19,000 --> 00:04:23,160 Speaker 1: abroad organized by a travel agent. Since then, Benny Dorm 55 00:04:23,160 --> 00:04:26,520 Speaker 1: has become a mecca of mass tourism. More than four 56 00:04:26,600 --> 00:04:29,599 Speaker 1: million people visit the town's beaches and bars every year. 57 00:04:30,040 --> 00:04:35,159 Speaker 1: Most of them are from Spain and Britain and stuff. 58 00:04:35,160 --> 00:04:40,800 Speaker 1: So it's just st play cricket, got lack an end 59 00:04:40,839 --> 00:04:43,359 Speaker 1: of seasons ship, you come, just lots and stuff so. 60 00:04:43,480 --> 00:04:46,120 Speaker 1: Chris Ward is a twenty five year old from Leeds, England. 61 00:04:46,680 --> 00:04:49,200 Speaker 1: On a recent summer afternoon in Benny Dorm, he and 62 00:04:49,240 --> 00:04:51,120 Speaker 1: his friends shown O were sipping a pint at the 63 00:04:51,120 --> 00:04:53,920 Speaker 1: Crown Pub. Chris has been to Benny Dorm more than 64 00:04:53,960 --> 00:04:56,960 Speaker 1: a dozen times for bachelor parties and end of season 65 00:04:57,000 --> 00:04:59,960 Speaker 1: trips with his cricket and rugby teams. He says it's 66 00:05:00,000 --> 00:05:02,560 Speaker 1: a unique and crazy place. I don't I don't know, 67 00:05:02,640 --> 00:05:06,960 Speaker 1: you can't describe it. I always say there's there's there's 68 00:05:07,000 --> 00:05:09,640 Speaker 1: loads of places it well that's look better than Benny Dorm. 69 00:05:09,920 --> 00:05:12,320 Speaker 1: But there's no where I've been that's like Benny Dom, 70 00:05:12,520 --> 00:05:14,479 Speaker 1: you know what I mean. It's I don't know, it's 71 00:05:14,520 --> 00:05:18,800 Speaker 1: just it's just not there's just you say things that 72 00:05:18,839 --> 00:05:22,120 Speaker 1: you'll never say anywhere at else, Chris laughed. He declined 73 00:05:22,160 --> 00:05:25,520 Speaker 1: to elaborate. What happens in Benny Dorm. Apparently stays in 74 00:05:25,560 --> 00:05:29,599 Speaker 1: Benny Dorm. It was shown his first time here during 75 00:05:29,600 --> 00:05:32,839 Speaker 1: a pandemic. I knew it's a little bit same, but 76 00:05:33,640 --> 00:05:36,160 Speaker 1: I think I quiet like there's like it's been quite 77 00:05:36,279 --> 00:05:40,480 Speaker 1: chilled out where less. There's not as many peoples this 78 00:05:40,520 --> 00:05:43,120 Speaker 1: summer in Benny Dorm, As in so many places around 79 00:05:43,160 --> 00:05:47,120 Speaker 1: the world, there's space where there used to be crowds, silence, 80 00:05:47,200 --> 00:05:50,400 Speaker 1: when there used to be sounds and caution and angst 81 00:05:50,600 --> 00:05:57,400 Speaker 1: instead of freewheeling abandoned. To ensure social distancing on Benny Dorms, 82 00:05:57,440 --> 00:06:01,000 Speaker 1: Levantevitch officials have marked off large squares in the sand 83 00:06:01,040 --> 00:06:03,920 Speaker 1: with blue rope. Each space can hold a maximum of 84 00:06:03,960 --> 00:06:07,520 Speaker 1: four people. Sunbathers have to reserve in advance. Many of 85 00:06:07,520 --> 00:06:13,520 Speaker 1: the spaces remain vacant because a crowded bats and everybody 86 00:06:13,560 --> 00:06:16,599 Speaker 1: has in their mind these simities. But now as you 87 00:06:16,640 --> 00:06:19,800 Speaker 1: can't see, it is a very organized feet. Everybody needs 88 00:06:19,800 --> 00:06:23,920 Speaker 1: to know where they must go. That's Larry Bilbao. She's 89 00:06:23,960 --> 00:06:27,320 Speaker 1: the director of the city's tourism board looking out over 90 00:06:27,360 --> 00:06:30,440 Speaker 1: Levante Beach. Larry tells me that many other cities haven't 91 00:06:30,480 --> 00:06:34,479 Speaker 1: put in place similar safety measures during a pandemic. She says, 92 00:06:34,839 --> 00:06:38,400 Speaker 1: Benny Dorm had to defy a stereotype, otherwise it would 93 00:06:38,480 --> 00:06:40,960 Speaker 1: risk an outbreak and even more people would steer clear 94 00:06:41,080 --> 00:06:44,640 Speaker 1: with this. With this situation, you can see that everybody 95 00:06:44,680 --> 00:06:47,640 Speaker 1: is happy and everybody is in the area. Since it 96 00:06:47,680 --> 00:06:51,159 Speaker 1: reopened in Midsummer, there's been on average seven thousand people 97 00:06:51,200 --> 00:06:54,719 Speaker 1: on the beach each day. That compares to twenty people 98 00:06:54,880 --> 00:06:58,880 Speaker 1: in normal times. Some people in Benny Dorm's tourism industry 99 00:06:59,040 --> 00:07:01,760 Speaker 1: told me that those norm more times will eventually return 100 00:07:01,880 --> 00:07:05,040 Speaker 1: once there's a vaccine. Levante Beach will once again have 101 00:07:05,080 --> 00:07:08,200 Speaker 1: twenty five thou sun bathers, bars will go back to 102 00:07:08,240 --> 00:07:11,280 Speaker 1: being jam packed, and tourism in the city will once 103 00:07:11,320 --> 00:07:15,160 Speaker 1: again be in mass. Others, though, I think the crisis 104 00:07:15,200 --> 00:07:19,080 Speaker 1: has changed us. Ramon Martinez and his family owned four 105 00:07:19,120 --> 00:07:22,560 Speaker 1: hotels in Benny Dorm. Even when we have a vaccine, 106 00:07:22,920 --> 00:07:26,080 Speaker 1: he thinks many people will still crave more space than before. 107 00:07:26,800 --> 00:07:30,520 Speaker 1: We know that is coming. A lot of change, for example, 108 00:07:30,680 --> 00:07:35,560 Speaker 1: in in our hotels. Like I told you before, the 109 00:07:36,800 --> 00:07:40,080 Speaker 1: maximum people in one room is too passion. Ramon is 110 00:07:40,120 --> 00:07:43,280 Speaker 1: renovating two of his hotels. He plans to build only 111 00:07:43,320 --> 00:07:47,360 Speaker 1: double rooms. That's a shift for many Benny Dorm hotels. 112 00:07:47,680 --> 00:07:51,440 Speaker 1: Their business models about volume, attracting a lot of lodgers. 113 00:07:51,560 --> 00:07:55,840 Speaker 1: By offering affordable rooms, clients get a discount, for example, 114 00:07:56,040 --> 00:07:58,160 Speaker 1: when they had an extra bed in the room, so 115 00:07:58,280 --> 00:08:00,720 Speaker 1: three people stay in a double room and four in 116 00:08:00,720 --> 00:08:03,480 Speaker 1: a triple. That appeals to friends keen to cut down 117 00:08:03,480 --> 00:08:05,760 Speaker 1: on the cost of a weekend away, or to families 118 00:08:05,760 --> 00:08:09,960 Speaker 1: with children. Ramon's renovation to right size his rooms is 119 00:08:10,000 --> 00:08:12,520 Speaker 1: going to take a couple of years. Right now, he 120 00:08:12,600 --> 00:08:15,440 Speaker 1: has his hands full managing his hotels during a pandemic. 121 00:08:15,960 --> 00:08:19,320 Speaker 1: Ramon has outfitted the entrance to his Hotel Presidente with 122 00:08:19,440 --> 00:08:23,920 Speaker 1: mats that are coded and disinfectant. Thermographic cameras discreetly scan 123 00:08:24,080 --> 00:08:27,200 Speaker 1: the reception area. They're looking for anyone with a temperature. 124 00:08:28,040 --> 00:08:31,640 Speaker 1: Using artificial intelligence, the cameras can also detect if someone 125 00:08:31,680 --> 00:08:35,640 Speaker 1: isn't wearing a face mask. So far, Ramon says that 126 00:08:35,679 --> 00:08:42,840 Speaker 1: hasn't been a problem. Everyone is wearing the mass so 127 00:08:43,840 --> 00:08:46,200 Speaker 1: I mean the movery important thing is that you wear 128 00:08:46,280 --> 00:08:49,320 Speaker 1: your marks. We can do everything you want. We can 129 00:08:49,440 --> 00:08:54,360 Speaker 1: put everything but your mass and you if you are crazy, 130 00:08:55,160 --> 00:08:58,960 Speaker 1: we can we can knock it to at least. If 131 00:08:59,080 --> 00:09:01,920 Speaker 1: Ramon sounds a little muffled, it's because he himself was 132 00:09:01,960 --> 00:09:05,319 Speaker 1: wearing a mask while we were speaking. Visitors to Benny 133 00:09:05,320 --> 00:09:09,000 Speaker 1: Dorm say they welcome all the safety measures. In some ways, though, 134 00:09:09,400 --> 00:09:11,960 Speaker 1: the measures to control the masses in hotels and on 135 00:09:12,000 --> 00:09:15,480 Speaker 1: the beaches are responding to a problem that doesn't exist. 136 00:09:16,080 --> 00:09:25,360 Speaker 1: There are no crowds. Benny Dorm feels empty occupancy, and 137 00:09:25,480 --> 00:09:32,600 Speaker 1: Ramon's hotel Bresidente is around. Normally it would be around full. 138 00:09:33,760 --> 00:09:36,520 Speaker 1: Ramon and others had been expecting this summer to be bad, 139 00:09:37,040 --> 00:09:41,840 Speaker 1: but then it got worse. In mid July, coronavirus cases 140 00:09:41,840 --> 00:09:45,160 Speaker 1: started to rise again in Spain. The UK ordered British 141 00:09:45,240 --> 00:09:48,640 Speaker 1: travelers who returned from Spain to self quarantine for two weeks. 142 00:09:49,240 --> 00:09:53,520 Speaker 1: The news hit Benny Dorm particularly hard. Around of visitors 143 00:09:53,520 --> 00:09:57,400 Speaker 1: to the city are from the UK. Cancelations overwhelmed the 144 00:09:57,440 --> 00:10:01,720 Speaker 1: city's hotels. The surprise announcement also caught some British residents 145 00:10:01,760 --> 00:10:05,920 Speaker 1: mid vacation, including Bernie Schroka and her brother John Kelly. 146 00:10:06,360 --> 00:10:08,079 Speaker 1: They were having one of their final pints in a 147 00:10:08,120 --> 00:10:11,280 Speaker 1: Benny Dorm bar earlier this summer, preparing to head back 148 00:10:11,280 --> 00:10:15,640 Speaker 1: to England to self quarantine. Well, it's off because we 149 00:10:16,080 --> 00:10:20,160 Speaker 1: wouldn't come out. Does a quarantine got it back? You know? 150 00:10:21,000 --> 00:10:24,959 Speaker 1: Yeah about it? Yeah. Bernie is a teacher and doesn't 151 00:10:24,960 --> 00:10:28,040 Speaker 1: start working until the fall. The quarantine won't disrupt her 152 00:10:28,040 --> 00:10:31,440 Speaker 1: plans too much, but John works in maintenance at a hospital. 153 00:10:31,840 --> 00:10:33,960 Speaker 1: His two week absence will leave the place a bit 154 00:10:34,040 --> 00:10:37,680 Speaker 1: short staffed. They both say they're frustrated the quarantine order 155 00:10:37,760 --> 00:10:40,920 Speaker 1: was a surprise, but they understand that the pandemic makes 156 00:10:40,960 --> 00:10:46,920 Speaker 1: everything less certain. Now I've been coming to bant down 157 00:10:43,880 --> 00:10:50,400 Speaker 1: Snow I've never seen as I've never seen a discore. 158 00:10:51,040 --> 00:10:55,640 Speaker 1: Does it make you, does it make the vacation less enjoyable? 159 00:10:55,679 --> 00:10:59,120 Speaker 1: Or how does it change for us? I'll just go 160 00:10:59,280 --> 00:11:02,160 Speaker 1: sorry for them that are working, you know, they happen 161 00:11:02,200 --> 00:11:06,560 Speaker 1: to opay and it's to us here and the expense 162 00:11:06,600 --> 00:11:09,640 Speaker 1: they must be going. It's a sign of the times 163 00:11:09,800 --> 00:11:13,680 Speaker 1: for the world's battered tourism industry. Music blaring at two 164 00:11:13,679 --> 00:11:17,200 Speaker 1: people sitting in a near empty bar. Benny Dorm is 165 00:11:17,200 --> 00:11:20,040 Speaker 1: trying to adapt while the city awaits for the masses 166 00:11:20,120 --> 00:11:24,440 Speaker 1: to return. There might confordulate it probably would help you, 167 00:11:24,520 --> 00:11:34,480 Speaker 1: but that it might mean it s Risto. That was 168 00:11:34,600 --> 00:11:38,000 Speaker 1: Jeanette Newman, and that's it for our show today. For 169 00:11:38,080 --> 00:11:41,440 Speaker 1: coverage of the outbreak from one bureaus around the world, 170 00:11:41,880 --> 00:11:46,440 Speaker 1: visit bloomberg dot com slash Coronavirus and if you like 171 00:11:46,559 --> 00:11:49,280 Speaker 1: the show, please leave us a review and a rating 172 00:11:49,559 --> 00:11:53,080 Speaker 1: on Apple Podcasts or Spotify. It's the best way to 173 00:11:53,120 --> 00:11:58,000 Speaker 1: help more listeners find our global reporting. The Prognosis Daily 174 00:11:58,120 --> 00:12:01,720 Speaker 1: edition is produced by to for four or Hez, Jordan Gospoure, 175 00:12:02,200 --> 00:12:07,440 Speaker 1: Magnus Hendrickson and me Laura Carlson. Today's main story was 176 00:12:07,480 --> 00:12:12,560 Speaker 1: reported by Jeanette Newman. Original music by Leo Sidran. Our 177 00:12:12,720 --> 00:12:17,160 Speaker 1: editors are Francesco Levi and Rick Shine. Francesco Levi is 178 00:12:17,200 --> 00:12:20,520 Speaker 1: Bloomberg's head of podcasts. Thanks for listening.