Villas are being ordered to close as workers are being laid off due to the shortage of the Spanish resort town of Siena.

The city is now the largest single employer of Spanish workers in the EU, employing 1.6 million people, the government said on Wednesday. 

More than half the workers are employed in the hotel and spa sectors, and a fifth are in construction and manufacturing.

The mayor of Siento said that a new plan was being put in place to increase the supply of labour in order to meet demand.

“It’s a big challenge for us to provide the workforce, and in the meantime, we need to consider the economic situation,” Mayor Rodrigo Pires said.

“If we cannot recruit enough workers, we will close the resort.” 

The government says the crisis is affecting the tourism industry, which has already been hit by a series of natural disasters. 

“There is a shortage in workers and we are not prepared to allow this to continue,” Mayor Pires told the Associated Press news agency. 

The number of people working at the resort is estimated at around 4 million, he said.