Major Spain vacation hotspot in ‘disaster’ over vacationers shunning rising beer prices

The restaurant sector in Majorca has warned that the island is experiencing a ‘tourist crisis’ as visitors are spending less money on eating out while on holiday

Majorca’s hospitality sector is ringing the alarm bells after penny-pinching tourists have left them with a major drop in income.

Despite experiencing a record number of visitors flocking to the sunny Balearic hotspot, restaurant bosses admitted to plummeting revenues – making for a 20% nosedive in money for the year’s first quarter.

The hospitality experts have noted that even the usual hotspots, including tourist havens like Playa de Palma and Puerto de Pollenca, are experiencing hard times.

Locals and tourists alike are pointing fingers at the skyrocketing prices of grub and grog in eateries, accusing restaurants of being too pricey. They’ve taken issue with the cost of wine and beer, as well as menu options – comparing it to Monaco’s steep prices.

One social media user summed it up: “This is looking like Monaco every time.”

But it’s not all doom and gloom, some savvy spots like Portixol and Plaza de España in Palma are bucking the trend, managing to increase their turnover, reports The Express.

Juan Miguel Ferrer, President of the CAEB Restoration employers’ association, is calling it an “indicator of economic alarm”. He reckons the restaurant industry is a key thermometer of the local economy, warning that when diners tighten their belts, the whole local community feels the pinch.

“We have more people who spend less, it seems,” Mr. Ferrer told island newspaper Ultima Hora es.

However, have noted the resistance of areas such as Portixol and Plaza de España. The surge in the latter case is credited to the city council’s efforts, which has been sprucing up the urban landscape since last year.

Yet, the overall picture remains bleak for the rest of Palma and most parts of the island. “Even in areas that historically had very positive figures, this year we saw declines of 10% or more,” Mr Ferrer noted.

The CAEB is sounding the alarm, urging immediate action to halt this downward spiral. “Majorca cannot afford that one of its most visible economic engines begins to decrease its turnover,” warned the president of the employers’ association.

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