The president of the Palma and Cala Major hoteliers association, Javier Vich, concedes that there is little scope for increasing hotel supply. "We can't grow more because we will have reached a limit with the current number of establishments and the new ones that will open in the next two years." In 2010 there were 46 hotels. By the end of next year there will be 72.
There has been, explains Vich, a substantial change in Palma's hotel stock since boutique hotels started to "enter the fray" in 2004. There has been progressive growth over the years, but it is now leading to a fall in occupancy. This has gone down by five per cent. Between 2010 and 2013 there was 55% average occupancy. By 2017 this had risen to 70%, but it has fallen in 2018 to 65%.
The association's forecasts suggest that foreign and mainland demand will stagnate in 2019. Consequently, it is a time to consolidate and not grow further. General levels of profit could be affected otherwise, and Vich doesn't want to see a price war in order to bump up occupancy as this would have an impact on quality.
Next year, six hotels will open, the first of these being the Protur Naisa on 2 January with 100 rooms. In all, there are currently 10,255 beds. In 2019, this number will increase by 756.
