There is rising prices as well as panic in the Balearic Islands as industry bosses worry that the much-loved holiday spot has become too expensive.
As 2024 closed in the Balearic Islands with record tourist numbers – around 18.8 million and 2.2 million more compared to pre-pandemic levels – eyes now turn to the state of the tourism industry for 2025.
The Mallorca Hoteliers Federation – one of the archipelago’s most staunch opponents of the current tourism model – believes this year will be much the same as 2024.
However, there are major concerns about ever-increasing prices on the islands including Majorca, and what impact this will have on tourist numbers.
In a recent interview, the CEO of Riu Hotels & Resorts, Luis Riu, warned that “Either we all lower prices or people will not come next year,” the Majorca Daily Bulletin reported.
The president of the Aviba association of travel agencies, Pedro Fiol, also believes that, while the season will be “very good”, he is concerned about prices – particularly the use of sustainable air fuel in Spain.
Airlines estimate this will cost them 234 million euros (£196.5 million), and as a result, the airline association is seeking a government subsidy.
If this is not accepted, the use of the fuel will be reflected in the price of tickets.
“It is clear that the price of tickets will become more expensive,” says Fiol.
However, he does not think this will shrink demand. If anything, he anticipates an increase, noting that a record number of airline seats to Spain have been programmed for the low season up to the start of April.
Fiol has shared concerns about how long there will be capacity to continue offering the type of prices now being charged for travel and accommodation.
He believes that 2025 will be “the last year with this approach (of ever higher prices) to tourism supply”.
Further complications may also arise from the new traveller registration systems for British tourists, including the ETA and ETIAS, or equally from higher tourist taxes, though the latter is yet to be confirmed.
Tourists staying on the island overnight pay the tax, typically a few euros a night, when staying at accommodation on the island.
The government of the Balearic Islands, which also include Menorca and party hub, Ibiza, has announced the tourist tax per visitor will be increased during peak summer months – potentially bringing in millions more euros in revenue.
Currently, the rates stand at four euros (£3.36) for those staying in luxury hotels, three euros (£2.52) for mid-ramnge accommodation, two euros (£1.68) for cruise passengers and cheaper hotels and one euro (84p) for campers and hostel guests. Those under the age of 16 are exempt.
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