After speaking to a few of them, the main answer I got was “optimism”. One of the main problems the Government need to address is the sustainability of the Islands and how they are going to do that yet still reap the economic benefits. President Marga Prohens announced that 1.12 billion euros is to be spent on tourism sustainability and modernisation in the Balearics.
The slogan for the campaign is ‘the reason is you’ and the strategy is to make the Balearics a benchmark in tourism sustainability. The money will come from the EU next generation funds and the tourist tax - respectively 260 million euros and 860 million euros of tourist tax revenue raised since 2016. Being an island, we rely on people arriving by air and sea, so is it any wonder the amount of investment in our airport and ports?
Many airlines are increasing their seat capacities. One of them United Airlines from the United States, will increase its direct flights from Palma to New York by more than 50%. A route between the two cities that will also remain in operation until the 24th of October, an extra month on last year.
Anybody travelling through Palma Airport this winter will have seen the massive investment in the infrastructure. Now, I imagine this is being put in place to improve the customer journey, but without doubt it is also preparing for an increase in passenger numbers.
Back in 2021 there was a 5-year agreement signed to limit the size and number of cruise ships visiting Palma. Whilst there are fewer ships and passengers compared to 2019, the numbers are still high. In 2025, 541 cruise ships are scheduled for Palma. The total number of passengers is put at 1.8 million. By comparison with 2024 there will be 47 more ships and 41,000 more passengers.
According to Ibestat the passengers that disembark “only spend €35 on the island”. Only? That’s not a bad per head for a person spending less than a day here. That 63 million euros I am sure is welcome. What isn’t taken into account is the employment this all creates and the other revenue such as coaches, taxis and the companies restocking those ships. I would also wager a bet that a certain percentage of those 1.8 million visitors will return to the island for another holiday.
You may wonder why the Club de Mar and the Paseo Maritimo in Palma are being revamped? Like the airport, I imagine this has been to not only improve the area for residents but preparing for greater numbers arriving at the port.
1 in 5 people in the Balearics work in Tourism, we all know someone who is involved in that Industry. Tourism both directly and indirectly contributes between 40% and 50% of the Balearic Island’s total GDP. Mallorca continues to face major challenges in terms of making tourism more sustainable while at the same time safeguarding their economic interests.
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