On June 18, 2021, just over a year ago the Andalusian government rejected restructuring the accounts at the Granada Conference Center to allow the company that runs it to compensate for the losses resulting from the pandemic. The City Council stated that the remaining 40 congresses for 2023 and 2021 depend on the operation to cover an amount of approximately 10 million euros. If the Board refuses to compensate the Palace, it could put the Palace at serious risk. The same formula that was denied last year is what the regional administration accepted to provide stability to Isla Magica, Seville, as well as to the Palacio De Congresos Del Cordoba.
Jacobo Calvo, the spokesman of the government team, condemned Monday's "aggravation" of the government with the city, after it granted Isla Magica, the Palacio de Congresos de Cordoba a similar restructuring as the one that was denied Grenada a year ago. Municipal sources claim that an audit was done to justify the need to adjust the Palace's economy using one of the regulations established by law at national level. This was due to the loss of profits caused by the global health pandemic.
Board and City Council share the facility management of a company with 15 years of administrative concession. There are many options to make up the difference between what the company is losing and what it can earn. The City Council has considered extending the concession to the company in the future. A mixed option was chosen in the Seville and Malaga cases, which included an economic compensation and the time of exploitation.
Calvo appealed to Marifran Carazo, Granada's acting Minister of Public Works to defend his city interests. Calvo says that the events scheduled for the next two-years are "in grave risk, in danger" if Calvo's Board doesn't agree to rebalance Palace's accounts. This would impact the hospitality industry and thousands of jobs related to congresses.
The spokesperson for the municipal government lamented, "Why so much ease in Seville and Cordoba but so many sticks inside the wheels of Palacio De Congresos de Grannada?" "The Board should act as a facilitator and favor balance formulas."
Calvo assured that Calvo's government team is trying to negotiate a readjustment agreement. This is "far from avoiding conflict." He said, "We need to seek an economic boost for the company," and urged the Board to "show its face, that we are going to negotiate a solution." Calvo also recalled that it is necessary to examine the company's pending investments.
The spokesperson for the municipal government has criticized "disloyalty" and the "incomprehensible war opened by the regional government at the Palacio de Congresos". He has also shown his "perplexity" through "the offense to the Junta de Andalucia submits to Granada through the Palacio de Congresos knowing the benefits that congress and events entity have in the city, which saw a new record for hotel occupancy and attendance at congresses in 2022, and a world-wide for hotel occupancy of congresses was set for the city's"
The City Council data shows that there are 20% more people attending than before the pandemic. "We're talking about approximately 12,000 visitors this year with a substantial number of foreigners."
The Junta de Andalucia announced in January that it would inject eight million euros from European funds. This money will be used to improve accessibility, put green roofs, and adapt the seats for the new fire regulations. The City Council states that the money has not been received and no date has been set.