The current situation facing the hospitality sector in Spain’s holiday island of Majorca has been likened to the financial crisis of 2007. Miguel Carrió, president of the restaurants association for Palma’s Paseo Mallorca, said: “That was a real estate crisis. This will be a hospitality crisis”.
Since June last year, statements from the Balearic Island’s restaurant sector have consistently highlighted a downturn as tourists continue to visit the island but choose to spend their money elsewhere. Last month, the president of the CAEB Restaurants Association, Juanmi Ferrer, admitted that “We haven’t had such a bad summer since the pandemic.” While he did add that there was an upturn in business over the second half of July, revenue was still down on last year.
With Majorca’s airport continuing to register record passenger numbers – over 33 million in 2024, a 7% increase compared to 2023 – and cruise ships bringing thousands of people, Mr Carrió accepted that “Palma is full”.
“You see tourists staying in four-star hotels for €300 a night,” he said, but these visitors have begun to choose different options for sourcing their food and drinks.
“They don’t go to bars or restaurants,” he said, reported the Majorca Daily Bulletin. “They go to a supermarket, to the prepared food section, and take a loaf of bread and a slice of pizza to eat in their rooms.
“Families don’t have €3,000 to come on vacation. Plane tickets cost €1,000; there’s another €200 for a night in a hotel. How much does a week’s vacation in Majorca cost? €5,000?
“If the bill for a table of four is 200 euros, many people prefer to pack their Tupperware to go to the beach.”
Mr Carrió admitted that while those who have the necessary resources can endure the struggles, he warned that those with small businesses will lose out.
“A small coffee shop run by a married couple with one employee, or someone who buys a food truck and pays 5,000 euros as a self-employed person, takes on a lot of risks.”
He added that he is anticipating a tough winter for the island.