Playa de Palma, Mallorca

August is still marked by uncertainty for hotels.

15-08-2021Archive

Although the Mallorca Hoteliers Federation has been estimating occupancy levels of 60 to 65 per cent in August, there are concerns that some hotels will be struggling to make 50% over the second fortnight of the month. These concerns are shared in Ibiza and Minorca.

Apart from this reduced level of activity, hotels are being hit by energy costs. The federation says that the escalation in the price of electricity compounds the additional costs incurred because of Covid measures. Meanwhile, there is ongoing instability because of the pandemic and lingering worries about changes to foreign governments' travel policies. Some hotel companies are in a "critical condition".

Of all the hotels affiliated to the federation, 88% are open. However, occupancy is not as had been hoped and of a level to be able to recoup losses caused by the pandemic. The federation notes that "promised direct aid" has yet to arrive.

Hotels have very high operating costs and the increase in electricity prices will have a negative impact on business results.

Prospects for the two main foreign tourist markets - Germany and the UK - have improved slightly for the second half of August, but it still remains to be seen what the level of business will actually be.

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