Hotel in Mallorca

Forecasts for high summer are very good. | Jesús Jusué

Andrew EdePalma09/07/2022 07:40
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The high demand for holidays in Mallorca is resulting in hotel revenues equivalent to or even above those of 2019. Hotel financial performance is in part due to higher prices, but the level of demand, say hotelier associations, has caught everyone by surprise - the rapid reactivation of tourism this summer had not been expected.

How the bottom line will look come the end of the season will be determined by the impact of higher costs - energy and supplies, most obviously - the CEHAT confederation of hotels in Spain having said this week that profit levels will be eroded by these increased costs.

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After a May and June that were well above expectations, the forecasts for July, August and September are very good. There is strong demand from all the main source markets, with the Scandinavian market being highlighted in particular. Pre-pandemic, Scandinavian tourism slumped, largely because of disadvantageous exchange rates.

Apart from the costs, the main concerns for hotelier groups relate to travel - strikes and delays. In overall terms, though, financial performance in Mallorca and the Balearics is above the national average.