Magalluf Beach, Mallorca. | Emilio Queirolo

Several Hoteliers in Magaluf are planning to close down at the end of this month and Calvia City Council fears the neighbourhood will become a ghost town.

Chains that have several hotels in the area will group tourists into a few of them and close the others, but hoteliers in Peguera say they’ll try to hold out until December.

The Palmanova-Magaluf Hotel Association has decided to give up its 180,000 European Winter programme subsidy and has asked the City Council to distribute the money amongst other Hotel Associations in the Municipality.

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The Government insists that it wants to stretch the season to the maximum, through European Winter activities such as the literature festival in Magaluf from 1 to 3 October and the Santa Ponsa golf tournament from October 21- 24 which it estimates will generate up to 4,000 overnight stays. Challenge Mallorca is working on a joint promotional campaign with the Consell de Mallorca for the last quarter of this year.

Calvia Mayor, Alfonso Rodríguez Badal, has urged hoteliers not to set full occupancy as their main objective.

"Many hotels have better search engine ratings when they are at 70%, and enjoy generous benefits with that level of occupancy.” he said and demanded that hotels stay open for the sake of employment and the economic recovery of the Municipality.