Despite a wave of anti-tourism protests last year Majorca has seen an uptick in bookings and is on track for a record-breaking year – but one issue is still threatening to cause major issues. A tourism boss is warning that “out of control” inflation may seriously impact the island in the upcoming tourism season.
Majorca is becoming less budget friendly thanks to its increasing popularity as a holiday destination, causing accommodation, dining and tourist attractions prices to all rapidly increase. And now Juanmi Ferrer, president of the CAEB Restaurants Association, is expressing his concern about the eye-watering costs restaurants are facing. He told the Majorca Daily Bulletin that last year eateries had to absorb price increases to keep customers, but that led to a loss of competitiveness.
Mr Ferrer warned that businesses do not want a repeat of the 2024 scenario as forecasts had suggested last summer would be an exceptional one – but in reality turnover was lower than anticipated and there was a drop in productivity.
He said: “Unlike other tourism sectors that have been able to adjust rates upwards, the restaurant sector continues to have difficulties in transferring the increase in costs to final prices. This has generated a stagnation in profitability, with businesses working with increasingly tight margins.”
Visitor numbers are up, but tourists are spending less, he warned.
Mr Ferrer said: “Last year there were many people on the island, but there was less spending per tourist. We are faced with a drop in turnover and, what is more worrying, a reduction in productivity due to the containment of prices.
“The sector has its eyes set on the hospitality agreement and on how tourist spending, business profitability and the evolution of costs will evolve over the coming months.”
Earlier this year Tui issued a warning that although it doesn’t yet have sufficient information to be able to make certain forecasts for the coming summer season, it has noted that Brits “are finding it increasingly difficult” to pay for their holidays in the Balearics.
CEO Sebastian Ebel has suggested that Brits could opt for cheaper destinations such as Bulgaria, which is often listed as one of the most affordable options in Europe.
A typical pint in Bulgaria costs just £1.67 while a mid-range hotel is around £30-50 per night working out at £200-350 per week. If you like the finer things in life then a luxuary hotel is £100 per night.
In comparison the average cost of a pint in Majorca is £3.50 whilst a mid-range hotel is around £80 per night or a whopping £580 per night for an upscale hotel.
