Leading UK tourist industry sources informed the Bulletin this week that local hoteliers may have acted a bit hastily with regards to hiking holiday prices with reports of the island being "sold out".

Despite the reports this week that the weak pound is, at the moment, making holidays in Majorca more expensive than last year - 15 per cent in some cases - the Bulletin has learned that some local hoteliers and suppliers have got a bit too greedy too soon.

"It is certain that even without the drop in the pound holidays are going to cost more, as so many suppliers have now put their prices very high. And one thing that has also become evident of late is that some ‘chinks’ are starting to show. Whereas before hoteliers were super confident, they are now saying that they have space in the high season, which before was totally unspeakable."

So, contrary to initial industry reports, Majorca is not sold out. But people have paid top dollar in the mad panic, and that is now the general view; hence why the UK is pushing hard for people to take cheaper vacations in UK this summer.

We have already read complaints from consumers about the high price of flights between the UK and the Balearics this season, again fuelled by the anticipated high demand, while a few months ago, there were rumours of overbooking. However, while bookings to destinations like Turkey are down, they are not as bas as expected and Greece is also faring quite well - both being cheaper destinations than Spain, especially the Balearics. As the Bulletin has been told time and time again by the UK industry, "price is king".

There are worries now that last-minute bookers, if faced with expensive options to Majorca plus the tourist tax, will opt for cheaper alternatives in the likes of Turkey, Greece or even Bulgaria.