Majorca's main four and five star hotels have seen a slight reduction in bookings compared to last Christmas. In general, bookings are down by between ten and fifteen per cent on last year. Initial forecasts, based on last year's occupancy levels, suggested that the top end of the market would not be effected by economic down turns or the fall out from September 11, however, bookings have taken a slight fall. However, the Son Vida and the Arabella Sheraton, are as busy as last Christmas with 40 per cent of their clients being regular Christmas guests. The Son Vida was yesterday 70 per cent full and expects to be 92 per cent full for New Year. Occupancy at the Arabella is between 60 and 70 per cent, the same as last Christmas. However, Palma's city hotels have suffered slightly. The Gran Melia Victoria says that bookings are down by between 15 and 20 per cent. Last Christmas the Melia Palas Atenea was 60 per cent full, this year occupancy is 50 per cent. The Hotel Formentor and the Melia del Mar have decided to close this year because of the drop in demand. But while the island's luxury and city hotels are relatively busy, resort hotels are having a very quiet Christmas. Of the few hotels that have remained open for the winter, ten per cent less than last year, the majority have very few guests. The combination of the US attacks and the European recession is having a very negative effect on the mainstream winter tourist industry in Majorca.

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