In a desperate bid to stay open and attract customers, hotels in Spain’s Palma Mallorca are dropping prices to levels never seen before.
The Hotels in Palma are slashing prices because average occupancy has now plummeted to around 15%, according to Palma Hotel Association President, Javier Vich. 38 hotels of Palma’s 72 hotels are still open, but it has been revealed that some of them will close by the end of September because demand has dropped to virtually zero.
The short-term prospects are not looking good 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 the Association President.
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- the tourists just aren’t there.
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.
Best known among the Mediterranean island group’s islands are the three largest, Majorca, Minorca and Ibiza. In a normal year, they would be buzzing with activity now, restaurants, bars and street vendors would be working around the clock to secure the revenue to carry them through the winter. But nothing is normal this year. Coronavirus restrictions and the decline in global tourism have left streets and beaches half-empty, and one look at the prices for package holidays reveals just how deep the crisis is cutting.
For Ibiza, which is famed for its lively clubbing scene, travel agents are now offering airfare and seven-night stays in a hotel for less than €400!. Some four-star hotels have slashed room rates to a level comparable to that offered by hostels on the island last summer. In 2019, the Balearic Islands, which have a combined population of just under 1.9 million people, were visited by a total of 13.6 million tourists who spent just under €15 billion there.
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