A 10 percent fall in one of your principal markets should get the alarm bells ringing but not in the Balearics. A 13 percent drop in another key market should be cause for some concern. But not in the Balearics. In the Balearics a big rise in German tourism has meant that visitor numbers to the islands remained in positive territory in July.
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I don't visit Magaluf often, so I'll take your word for it that it's quiet. But c'mon... Mallorca tourism has always been German-dominant. That hasn't changed, except for maybe a few more coming lately. Makes up for those that have decided to go elsewhere. But there's nothing bad or alarming about that. Germans may be culturally (often irritatingly) rules oriented, often obsessively clean and orderly, but it makes them bloody good tourists. Everybody in hospitality likes the Germans. Generally speaking, they follow the rules (excepting the drunken party animals of course, which is sort of a universal segment of any nationality), they seek quality, they have (and spend) money, they leave the place clean and orderly, they don't break stuff or steal things, and don't complain much (especially about petty stuff). And they don't wear spray on tanning products that ruin the towels, sheets and pillowcases. Scandinavians are similar in that respect. What's not to like?
Who cares what nationality tourists are. This paper seems to think it's some sort of competition. Tourists in Mallorca come from dozens of countries and if they're are less British than before and more people from Germany and other countries, so what.