The Spanish hotel chain reported profits on Tuesday, unveiling a collapse of 97.5% of profits compared to the first quarter 2008, amid a worsening economic crisis which is leading to a harsh evaporation of demand in the travel industry.

Sol Melia SpainAccording to the hotel chain, for the Spanish tourism market, this first quarter can be “considered the worst in the last 20 year”.

Sol Melia reported revenues of 266.7 million euros, a 9.6% decline compared to the first quarter in 2008, while EBITDA decreased 37.4%, falling from 62.9 million to 39.4 million. The final net profit was a meagre 500,000 euros, a collapse of 97.5% over the same period the previous year.

The collapse in Sol Melia’s performance signals the collapsing travel and tourism market, which if we take into account any estimates and forecasts from the European Commission and the IMF, we can expect the sector will unlikey recover in the short term.

The Spanish hotel chain revealed earlier this week a travel discount campaign, titled “All in One”, offering clients rooms at a mere 22 euros per night for leisure and business travellers.

Hotel Melia 22 euros per night