Restaurant owners in Majorca have sounded an urgent warning about money-conscious tourists after suffering a major drop in income. They say that despite record numbers of holidaymakers heading for the popular Balearic island, revenues for the first quarter of the year have plummeted by as much as 20%.
The sector set off alarm bells after comparing takings to a year ago. Tourist areas like Playa de Palma and Puerto de Pollenca are being hit especially hard though some specific areas, such as Portixol and Plaza de España in the capital of Palma, have managed to maintain and even increase their turnover. President of the CAEB Restoration employers’ association, Juan Miguel Ferrer, described the situation as an “indicator of economic alarm”, stressing that the restaurant industry acts as a key thermometer of the local economy. “If spending decreases in our sector, it will inevitably affect the entire local economic chain,” he warned.
This trend is occuring at a time of record tourism, as, despite the increase in the arrival of visitors, both national and foreign, the average expenditure per customer has decreased.
“We have more people who spend less, it seems,” Mr. Ferrer told island newspaper Ultima Hora es.
But the employers’ association highlights the resistance of areas such as Portixol and Plaza de España.
In the latter case, they attribute the growth to the improvements promoted by the city council, which since last year has been carrying out renovation works in the urban environment.
However, the general outlook is still negative in the rest of Palma and in most parts of the island. “Even in areas that historically had very positive figures, this year we saw declines of 10% or more,” Mr Ferrer added.
The CAEB is calling for urgent awareness and the adoption of measures to reverse this trend. “Majorca cannot afford that one of its most visible economic engines begins to decrease its turnover,” concluded the president of the employers’ association.
Local residents and tourists say the rising prices of beers and food in the restaurants is to blame and blame restaurants for being too greedy. They have criticised the cost of wine and beer as well as menu choices.
“This is looking like Monaco every time,” was one comment posted on the social networks.