Six out of ten hoteliers say season has been better than expected

SIX out of every 10 hoteliers in the Balearic (65 percent) ackowledge that the peak of the tourist season this year was better than they had expected at its outset, according to a business survey carried out by the Gadeso Foundation yesterday.

The upturn in sales, said the study, had been due not just to last minute bookings, but also a combination of factors generated by special offers and discounts and overbooking in other holiday destinations such as Turkey.

Gadeso's business survey revealed that just 3 percent of hoteliers and proprietors of other establishments offering tourist accommodation said that the holiday season had been worse than they expected, whilst 32 percent said that it had been neither better nor worse than their forecasts.

There were however major differences with soundings from accommodation businesses and those which go to make up the so-called complementary offer of bars, cafés and restaurants. Just 3 percent of businesses in the complementary sector claimed that takings had been better than expected, 15 percent said they had been worse, and 82 percent said they hadn't changed.

With reference to the hotel occupancy levels, 9 out of 10 hoteliers said that it had been higher than forecast, while just 1 percent said it had been lower.

The Gadeso report unambiguously shows that the hotel occupancy rates in the Balearics have been better this year than last. Average levels were registered at 89.6 percent this year seen against 81.8 percent in 2009. The report acknowledges that the higher occupancy rates this year have not yielded higher profits or created extra jobs.

Gadeso concluded that the complementary offer, inextricably linked to hotel occupancy rates and the spending power of tourists, appears “mortally wounded”. The Foundation furthered that it urgently needs a common sense approach involving all players: the hoteliers, tourist businesses, the government and local residents.

It was clear, researchers showed, that visitors are now on tighter budgets and less inclined to spend when on holiday. As a result, the season was hallmarked by last-minute offers and reservations.