The Unión de Profesionales y Trabajadores Autónomos (Union of Professionals and Self-Employed (UPTA)) has warned that after the summer season, more than 5.000 bars and restaurants in Spain could be closed down permanently.

This harsh warning comes after the fall in domestic demand and household consumption, the rearrangement of the beach restaurants and smoke-free law which some people believe are further stifling the industry.

The laws governing the sale of cigarettes has also changed, which some bar owners have reported to have harmed their revenues.

According UPTA, the hotel industry has had a more positive development compared with the bar trade, but fear the situation is complicated by the smoking ban and the threat of closure of the beach bars, which represent a direct recruitment of more than 40.000 people and thousands more indirectly.