The Balearic government are constantly saying that Majorca will have a record holiday season. Bookings to the island are said to be sky high. But this week hoteliers, who have been even more upbeat than the Balearic government, said that we are heading for an average season and there were big concerns about the spending power of tourists. They are even concerned about their own profitability with many hoteliers saying that they have been forced to cut their prices to fill their rooms. So what is going on? I would say that the hoteliers obviously know the state of their own market. With a European wide recession tourists will have less money to spend so this is going to have hit the Balearics. The local government need to be upbeat; tourism is the only bright light among the doom and gloom of recession. If the hoteliers are right then I can´t see the Balearic economy getting the boost which is really needed. A record holiday season during the worst recession on record? I doubt it.
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