By Jason Moore WHEN an administration starts talking about price capping and setting maximum prices you know that things are in danger of getting out of control. The local authorities announced this week that they were looking at setting maximum bar and restaurant prices, in a move which has led to an outcry from the Bar and Restaurant Association. Why? The local authorities have been forced to act after being inundated with complaints from residents and tourists alike who say that prices are just spiralling out of control. The association should welcome the move rather than try and stop it and if they acted in the first place we wouldn't be in this position. And it is not only price. The quality of service has fallen while prices have soared. Cost is one of the biggest challenges facing the Balearics at the moment.

While you can come on holiday for 150 pounds sterling for a week a meal for four in a restaurant can cost the same. One of the reasons why so many hotels are going all inclusive is because of prices. I have stayed in a number of hotels on all inclusive packages and you do get value for money. The local authorities are right to act because they may just stop what most bar and restaurant owners fear...more hotels going all inclusive. It is rather ironic but the authorities are probably doing them a favour. Tour operators always say that people come on holiday with a limited budget. In otherwords they are watching their pennies and they cannot afford some of the prices which are being actively charged in Majorca. One British tabloid has already labelled Majorca as a Rip-Off island. It is just a shame that bar and restaurant associations are not in favour of price capping. In the end it could save them and reverse the trend of more all inclusive hotels.