Majorca is set for a good holiday season next year and probably the next four successive years. A bold statement - do I have a crystal ball? Well the simple answer is no. But I do know something: local hoteliers have decided to give staff a 17 per cent pay rise over the next four years, so obviously they must believe that things are going to be good and there is no need for concern.
They can complain that the rise in the tourist tax could affect bookings to the island but they know that tourists will continue to come to the island and there is no need for concern. This was quite a bold move by local hoteliers; it is a significent increase which averages at more than four per cent per year over the next four years. A very generous package.
Local hotel chains are making big money at the moment. They have increased their prices and still tourists are coming. The Balearic government also urged them to spread the wealth and this has certainly been the case. But I would say that this is cause for concern. The island is facing competition from cheaper holiday destinations in the eastern Mediterranean. I know for a fact that some tour companies are planning to increase their programmes next year to destinations in Turkey. British tourists have been hit by the fall in the value of sterling and of course Majorca is not a cheap holiday destination. I would be slightly worried, but it appears local hoteliers believe everything is ok.
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