Issuing a stark warning, Juanmi Ferrer, president of the CAEB Restaurants Association, says, “hundreds of restaurants will close this year; the summer hasn’t been good”.
He adds: “The situation is very difficult. We are very worried about businesses’ bottom lines. Many won’t be able to survive. We haven’t had such a bad summer since before the pandemic.
“At night, it gets a little livelier than for lunch, but nothing like other summers.
“We’ve gone from being full to having occupancy rates that don’t exceed 60 per cent.”
He believes the downturn in trade is due to May being a washout in terms of bad weather, June was a struggle and so far July is following the bad trend.
Mr Ferrer states that on average the number of customers has dropped between 5% and 6%. However, customers have dropped by an eyewatering in the popular resorts of Port Soller, Sant Elm, and Port Alcudia.
Tourists also seem to be boycotting Palma with the capital recording a slump of 20% with Paseo Marítimo, along the harbour front seeing the most worrying situation.
Mr Ferrer says, “This summer, we have fewer customers than last summer—around 20 per cent. The situation is desperate for some. The month that has always been the best of the year is failing to take off.”
With flights and hotel costs rising and tourists feeling the pinch when they do dine at restaurants ,they are “cutting back on everything – fewer dishes, wine, and so on”. On average, spending per table has dropped between 10% and 12%.
Meanwhile, restaurants “are paying more taxes, rents are higher, food prices are constantly rising”.
It comes after some restaurants no longer accept customers paying separately as restaurants are thinking of ways to create less work for waiters and waitresses on the island.