Page 109 - economic report 2021

and the Borrufa Trophy. At Vallnord-Pal Arinsal, the most notable sports event was the ISMF
Comapedrosa Andorra World Cup.

Among the developments in business, note the process of integrating the Vallnord-Pal Arinsal
resort into Grandvalira Resorts. To achieve this goal, the new company SETAP365 was officially
incorporated on 30 December 2021, combining EMAP and ENSISA. This transaction is the first
step towards marketing a single national ski pass for the 2022-2023 season. This alliance unifies
Andorra’s offering as a country of snow and mountain activities for 365 days a year and gives
access to a total of 303 km of ski pistes, placing the country among the top European destinations
for ski area.

The spa, Caldea, after a successful five-year trend of constant growth in the main business
indicators and celebrating its 25 years in 2019, has experienced its most complex moments over
the last two years. In the first half of 2021, the
In 2021, Caldea saw negat ve results for strict rules to contain the spread of the virus
the second consecut ve year, but expects stopped all movement of tourists into Andorra
a total recovery in 2022. and forced it to close a many of the areas; but by
the second half and as restrictions were eased,
business already revived fast and to the point
that the company exceeded pre-pandemic revenue in this period. Nevertheless, the impact of the
pandemic on 2021 results was very significant. In 2021, there were 233,794 visitors, 13% more
than in 2020, but still far from the 400,808 visitors in 2019. This steep decline in tickets affected
turnover, which went from €15.8 million in 2019 to little more than €9 million in 2020 and €11.4
million in 2021. Faced with the loss of turnover due to the pandemic, the company implemented
cost containment, suspended its investment plan and implemented the ERTO furlough scheme, 107
allowing it to slightly reduce the negative impact on net profits (losses of €2.3 million in 2020 and
also in 2021, contrasting with the profits of nearly €650,000 in 2019).

2022 could be the year that the COVID-19 crisis is finally overcome as, since the summer of 2021,
activity at Caldea has been very similar to before the pandemic. In fact, the company ended the
2021-2022 winter season with an increase in sales of nearly 8% compared with the 2018-2019
season, and expects to surpass the 2019 figures with a positive result of more than one million
euros by the end of 2022. For the next few years, Caldea will assume a new dynamic, with an
ambitious roadmap to renovate the most outdated installations and to build a hotel in the tower,
designed to offer long-stay retreats.

The Ice Palace also presented a recovery in volumes of turnover in 2021, with better figures
than in 2020. Operating income increased 43% against 2020, to reach turnover of €751,109, and
operating expenditure increased 22%. All activities saw a significant rise in turnover, but the ice
rink is what generated most income (€424,576, 23% more than in 2020). However, the notable
increase in operating expenditure due to rising energy costs and taking on the management of
the restaurant and its costs caused it to end 2021 with a deficit of €725,913. On the positive
side, note that self-financing grew to 52% (of every €100 spent by the Ice Palace, 52 could be
paid from the revenue generated), when this percentage was only 44% in 2019. To attract new The Andorran economy: developments in the main sectors | XII. Services
visitors and make the installation viable, the Ice Palace is working on a proposal to convert the
swimming pool into an aquatic park, and also to build a padel tennis court, an indoor climbing wall
and a climbable tree outside.

Naturland, the ecological theme park at Camp de la Rabassa, obtained record income in both the
summer and winter seasons. For the summer season, the best figures recorded until now were
those in 2019, and turnover in 2021 exceeded these by 1.5%. In relation to the same figures for
2020, the difference is even greater, as they rose 27%. Average spending per client rose 45%