Playa de Palma beaches packed but not the hotels

CAN Pastilla, Playa de Palma and Arenal ended May with an occupancy average of 70 per cent, down five per cent compared to May 2002, according to information made public by the local Hotel Association. These occupancy figures have only been achieved because of the increase in offers, often between 15 and 25 per cent off brochure price although there have been some even higher discounts. The main tourist zone of the Balearic Islands has begun the month of June with some 15 hotels and 4500 beds closed, all of them having been operative the previous year; these figures are seen in the context of a total of 150 hostelry establishments and 40'000 beds that go to make up the tourist accommodation of the area. This situation, apart from reducing the turnover of restaurants and complementary offer, has also meant 1'000 hotel employees have been left without work. These jobless from closed hotels are now on unemployment benefit and a separate contingent have had holidays forced upon them due to low occupancy of other hotels that have remained open. The situation facing hotels and their level of occupancy varies according to the category and location. The proprietor of a three star establishment in Arenal explained that average occupancy for May reached 57.5 per cent, when for the same period in 2002 it had been 72.02 per cent. On 31 May, bookings showed 48 per cent occupancy for the month of June (59.37 per cent in 2002), 46 per cent for July (47 percent in 2002), and 38.7 per cent for August (59.12 percent in 2002). Another Arenal hotel run by a Catalan chain and with a guarantee of 100 per cent occupancy by a wholesale operator, two days ago had bookings from only 52 clients in an hotel with 220 beds.