by Jason Moore

W E are already getting a good indication of the summer season in Majorca this year. Tour giants TUI and Thomas Cook have reported a major rise in sales of all inclusive holidays to the island. The good news is that a record number of tourists looking to be coming to our shores, the bad news is that their spending power will be limited and the service trade faces another major struggle with all inclusives holidays. Now, I know that all inclusive holidays are ruining the livelihood of some bar and restaurant owners in resorts. But times are hard and British holidaymakers want to know exactly what they are going to spend before they depart. Sterling, unfortunately, has taken a dive against the single currency over recent weeks and if this trend continues then British tourists are going to find the island very expensive this summer. In some ways it is thanks to all inclusive holidays that Majorca continues to attract British tourists in large numbers. This island remains an exceptionally popular holiday spot with British tourists but many still complain that it is expensive and this has led to the growth in all inclusive holidays. I think really the local tourist industry should be happy with the forecasts for the season ahead. Everyone wants value for money. But if the service sector wants to compete then they are going to have to look at their prices very carefully especially if sterling remains weak against the euro.