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Palma.—Since the start of the peak of the summer at the beginning of June, Majorca has been the busiest holiday destination in Spain, outstripping the forecasts issued by the hotel federations during the Spring.

According to the FEHM, Majorcan Federation of Hoteliers, the only market to have let the season down is the domestic one which is around 20 percent weaker than last year.

However, the British, German, Nordic, French and Russian markets have served to compensate for the decline in the Spanish market, much to the delight and surprise of the island's hotel industry.

According to tourist industry sources in the UK and Germany, Majorca continues to be the most popular summer destination in Spain “because it is safe, it is well served with regular flight connections from all over Europe and, for the British, they are getting more money Euros for their Pounds this year.” Majorcan hotel federation sources have been so bold as to claim that it would have been a record summer if the domestic market had held up but nevertheless, with occupancy in August currently at around 80 percent, with the market being such a late booking one, some chains are expecting to be fully booked come the middle of the month and even during the first few weeks of September.

The only down side is that, apart from the Britons, spending is expected to be down slightly, especially once VAT goes up next month.