Palma.—Exceltur confirmed yesterday that the Alliance has been forced to revise its estimates for the tourist industry in Spain this year, as originally in July the contraction had been forecast as 0.6%.

The Balearics however, did better than elsewhere in the country increasing its profit per room (RevPar) result by 10.5%.
Exceltur justified its figures, saying that the contraction is greater than expected even though there has been an upturn in the number of foreign tourists.

The problem, they said, has been due to a number of factors: a significant downturn in national tourism (approximately a decline of 2.9%), the increase in airport landing fees, the increase in VAT of between 8 and 10% applied to tourist businesses, and a lower number of places made available on Central Government subsidised holidays for pensioners.

Exceltur said: “The higher number of visitors coming from overseas this year hasn't compensated for the extent to which national tourism has declined.” Reportedly, 63.6% of Spanish tourist businesses are expecting a fresh downturn in activity during the the final quarter of the year, above all travel agents, city-based hotels and leisure companies. In the third quarter of the year, there had been a downturn in tourist business of 1.8 percent even though there had been a record number of overnight stays by foreign visitors during this period.