The Palmanova-Magalluf Hoteliers Association yesterday presented its report for the 2019 season. In terms of occupancy, especially in high summer, this increased two per cent.
At the same time, prices fell four per cent, influenced by competition from other destinations, uncertainty over Brexit, and a slowdown in the German economy.
Hotel profits were therefore down, an additional factor having been the five per cent increase in salaries under the collective bargaining agreement for the hotel sector.
Mauricio Carballeda, the president of the association, said that the season had “resisted better than had been expected”.
He attributed this to hotelier good management and investments in improving hotels.
Carballeda was, however, critical of the lack of investment in the complementary sector, e.g. bars and restaurants.
“While the hotel sector has done its homework, it is essential that there is modernisation of much of the complementary sector, which suffers from obsolescence and a lack of quality.”
The president had strong words to say about Magalluf and the attempts to change its image.
“Regrettably, the change of image has not progressed as everyone had hoped. Tourism of excesses eclipses positive news about developments, and the disorder on Punta Ballena continues to hold the resort back. Despite the positive measures adopted by the authorities and the great work performed by the security forces, the available resources are insufficient to control compliance with and application of bylaws.”
There was a 170% increase in expulsions from hotels for bad behaviour, and Carballeda suggested there was a direct relationship between a fall in prices and a reduction in the average length of stay and an increase in the number of youthful tourists.
This led to more drunkenness and drug-taking and to a consequential negative impact on the image.
Calvia’s mayor, Alfonso Rodríguez, attended the presentation of the report and reiterated the town hall’s support for improving quality and security in both Magalluf and Palmanova.
He highlighted ongoing public-private cooperation in addressing challenges and actions undertaken with the hoteliers association to improve the Magalluf brand.
The report revealed that British holidaymakers continued to constitute the largest market.
A 44% market share this year was much the same as in 2018.
Other markets showed slight increases - Portuguese and Russian, for instance - while there were decreases among the French (down three per cent), Spanish (minus two per cent) and Scandinavians (-0.74%).