UK holidaymakers set for the popular spring and summer escapes to Spain in 2025 have been issued a stern warning as inflation issues on the Balearic island of Majorca become rampant. Local restaurateurs are sounding the alarm, with Juanmi Ferrer, the head of the CAEB Restaurants Association, sharing his concerns with the Majorca Daily Bulletin about the mounting financial pressures.
He highlighted that while eateries absorbed price hikes last year to attract diners, this approach has cut into their competitive edge. Ferrer elaborated: “Unlike other tourism sectors that have been able to adjust rates upwards, the restaurant sector continues to have difficulties in transferring the increase in costs to final prices. This has generated a stagnation in profitability, with businesses working with increasingly tight margins.”
In response, a British critic pointed out: “Señor Ferrer’s long list of grievances contains a number of fair points. Unfortunately, nowhere does he proffer up any solutions. Tourists are spending less. I do hope he has other ideas other than forcing tourists against their will to pay more..”
Highlighting a stark outlook, Mr Ferrer added: “Last year there were many people on the island, but there was less spending per tourist. We are faced with a drop in turnover and, what is more worrying, a reduction in productivity due to the containment of prices.”
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He also noted the intense scrutiny on the hospitality agreement and the anticipated trends in tourist spending, business profitability, and cost developments in the near future, reports Birmingham Live.
Another person commented: “The aim of upmarket tourism. Locals can’t afford housing. The continued theme of articles on this site. So if wages rise locals will have better chance of affording a home. If that deters traditional tourism visitors, dare I say bottom feeders , then that’s the islands government aim. But it will mean reduced gross income . It may provide buildings to be re tasked .”
They added: “But the island’s offer will need to improve dramatically, to justify the extra costs, not just hotels, but the airport chaos and experience. And the resorts, will need a better experience, …less curry wurst , and more Majorca..”
A third individual remarked: “Tricky Business the restaurant game the fact that most place ́s turn the valve down or full off mode in the winter and all the staff have to look for work elsewhere coupled with Covid which really kicked the hell out of the tourist business along with Food prices skyrocketing really , the situation today is difficult and will continue to be hard many people are in the stay home mode avoid the going out for lunch is put on the back burner and will stay like that and now the EU want ́s to build a Super Army to fight the russian ́s ? France is broke and talking about going after the citizens Saving ́s Germany will be going deeper in Debt and England is Struggling to get the GDP moving restaurant ́s and holidays well that might also be on the back burner.”
One person commented: “The simple fact is that people have less disposable income now. Everyone is being squeezed from every angle and a lot of people just about afford to have a holiday. So their spending habits once abroad have changed also.”
They continued: “As for locals, its the same problem. Many people cannot afford to eat out anymore due to high living costs, so many businesses in hospitality will fold. Its been a boiling frog over many years and now its all coming to a head. Get ready for the ‘greatest’ depression!” Another individual chimed in: “To be fair, this is a very real problem and one facing the hospitality in the UK too. Many restaurants etc could just about cope with the increases in food and wage costs but not the greed of local authorities and landlords who continue to increase rates and rents over and above inflation,”
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