by Staff Reporter
THE Chamber of Commerce of Majorca, restaurant owners, hoteliers, car hire firms and various business organisations, all agree that the amount of money spent by tourists in the high season this year, is lower than last year.

Ferran Porto, chairman of the Chamber's tourism division, said that the current economical situation of the island “has to be viewed within the general problems affecting tourism.” He said that while it was true that more tourists were arriving, they were staying for shorter periods, and prices, with the euro, give them the impression that prices are higher.

He said that the general perception is that there is a drop in productivity in all sectors of tourism, and this drop in income in the high season “will have its logical effect on the island's gross domestic product.” Restaurant owners belonging to the business organisations CAEB and PIMEM said that productivity had dropped between ten and 20 percent this summer, putting the blame fairly and squarely on the all inclusive holidays in the areas where these packages are found most, namely Cala Millor, Alcudia and Playa de Palma.

The business associations Pimeco and Afedeco say that the situation is causing concern because of the drop in sales in tourist resorts, saying that tourists have less money to spend.

The Hoteliers Federation of Majorca also claims that tourists are spending little in their hotels, apartments or aparthotels, and this is affecting productivity in the sector.

Ramon Reus, head of the car hire firms' association, said that there has been a 15 to 20 percent drop this summer, although this month, “for obvious reasons” activity is high.

However, he said that the season has been weak and this will have its consequences in the sector.
He added that firms were considering regulating the sector on their own account or reconverting part of their fleets as they were aware that there were too many cars for hire in Majorca, Minorca and Ibiza, “even though the offer has dropped by ten percent over the past year.” He said that there are currently 45'000 hire cars in Majorca and 7'000 each in Minorca and Ibiza, “and this figure must be reduced drastically to achieve a reasonable fleet and improve productivity.” He added that the situation would be analysed this winter with a view to facing up to the next season “in better conditions.” Aviba, the travel agency association, said that there had been a 15 percent drop in excursions this summer, and a drop of up to 20 percent in activity in the complementary section.

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