Reports over the past few days of the holiday price war in the United Kingdom and the cut-price holidays on offer to the Balearics have caused concern in political and business circles. Sources for the Balearic Ministry for Tourism said yesterday that last minute discounts are usual and can be expected, however at such low prices, unless the market picks up, tourism revenue will show a decline this year. The Confederation of Balearic Business Associations shares similar fears that if holidays are going to be sold at such low prices for most of the summer, revenue is going to fall. Many local businesses are still reporting that trade is slow and revenue below par for this time of year and hoteliers are being reminded not to start panicking and dropping their prices, buckling under pressure from the leading tour operators. The United Kingdom price war is doing little to help the Balearic government's “quality not quantity” tourism drive.


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