There will be some hotel redevelopment work over the next couple of winters. But then what?

07-05-2018Archive

Builders in the Balearics and the Majorca Hoteliers Federation are concerned by the restrictiveness of legislation that will in effect bring to an end hotel modernisation work by 2020.

Under the 2012 tourism law, legislation brought in by the Partido Popular government of the time, a modernisation plan was facilitated. The aims of this were to upgrade hotel categories and to improve the overall quality of hotel stock. This plan allowed for an increase in height. A maximum of two floors could be added so long as these didn't mean exceeding seven floors in total.

The plan had a finite period but was extended to July last year. When that deadline passed, there was no further extension, and the tourism ministry does not envisage any new provision. This hasn't meant an end to building work, as there were numerous projects pending - around 170. As well as work carried out last winter, there will be more redevelopment this coming winter and in 2019. But from that point, nothing more is on the cards.

For the Balearic Builders' Association, this will have obvious consequences, while for hotels that haven't submitted projects or haven't undertaken them, the possibilities for them to redevelop are uncertain.

By adding floors, the number of places increased. The current Balearic government, through its tourism legislation reform, has determined a limit to the number of places for all forms of accommodation. There is, nevertheless, a principle of one-for-one, i.e. any new place requires the elimination of an existing place.

By not having legislated to permit further redevelopment and by having created a limit to the number of places, the government will in fact see a source of revenue dry up. New places come at a cost. This is around 4,000 euros per place, so some 8,000 euros for a double room. The revenue goes into the fund for accommodation places. Unlike tourist tax revenue, the spending of which has little to do with infrastructure in resorts, the fund is used for precisely this purpose.

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James / Hace about 1 year

We knew this government would be a disaster. This is history repeating itself - they came in on the economic boom and deliver sanctions against business and tourism.

The same thing happened to the island in 2005/6.

The PP will eventually be voted back in and Mallorca will be sensible again.

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