Hotels in Palma are slashing prices because average occupancy has plummeted to around 15%, according to Palma Hotel Association President, Javier Vich.
38 hotels of Palma’s 72 hotels are still open, but some of them will close by the end of September because demand has dropped to almost zero.
The compulsory quarantine that tourists face when they return home from the Balearic Islands has paralysed tourism.
Short-term prospects are negative and insiders are forecasting that only around 30 hotels in Palma will open between November and February.
"It is difficult to know if these hotels will be able to hold out, but the truth is that the evolution of the closures is higher than initially expected," said Vich.
In Playa de Palma, hoteliers have already written off the season and are setting their sights on 2021.
September is usually one of the best months for tourism in Playa de Palma with hotels staying open until mid-October. At the moment, 106 hotels in Playa de Palma are still open, but many are expected to close soon.
Imserso brings around 160,000 pensioners to the Balearic Islands every year, but because of the coronavirus pandemic there will be no tourism program for the elderly this year.