Humphrey Carter17/05/2003 00:00
TW
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The Majorcan Hotel Federation yesterday called for an end to the institutional squabbling and for businesses and politicians to start working together to pull the region's tourist industry out of its crisis. The lack of overseas promotion, the September 11 attacks, the Iraq War, recession in Germany, Majorca's poor image and that the island has become an expensive destination which has fallen out of fashion were the main causes for the current crisis which has prompted the federation to draw up a contingency plan of action. Federation vice-president Sebastiana Moranta told over 200 members yesterday that the island's tourist industry is crippled by one of its worst crises ever. Last year ended with a seven per cent fall in visitors, a 20 to 30 per cent drop in hotel revenue and a 30 per cent fall in low season bookings which led to nearly 300 hotels closing for the winter. Compared to the first quarter of 1999, hotel room night figures for the first three months of this year are down by over two million (see graphic.)

The hotel federation, to a certain extent, finds the local government guilty of causing the present crisis, for turning its back, for example, on mass youth tourism “when the visitors who spend the most are in their early 30*s and stay in one or two star hotels,” Moranta said. She added that the government has created an image that Majorca is a “damaged island” with its tourist tax and green policies. “There are currently 517 hotels and 2.139 beds less than 12 years ago,” she said.

The hotel sector believes that the Majorcan tourist industry must be opened up to all markets, serious steps be taken to properly develop low season tourism, that island-wide price controls are introduced and that competitive promotional campaigns are launched overseas.

The hotel federation's rapid reaction report also advocates:

• More marinas
• More golf courses
• More roads (second Palma ring road)
• More waste incineration facilities
• A conference centre
• Tougher security
• Tourist tax scrapped

A “wish list” it may be, but in short, the hotel sector was urged to make sure clients are satisfied, that they go home and recommend Majorca to their friends, that they spend more and do not mind paying extra for the quality service provided. Since the year 2000, hotel occupancy has fallen by 10 per cent, while hotel prices have risen by between two and three per cent above the rate of inflation which, in the case of the Balearics, has been and is one of the highest in Spain riding at around 3.2 per cent. President of the hotel federation, Pedro Cañellas, said that despite the crisis being the most severe to have hit the sector “the local government will not admit it.” He said that the report will be sent to the government demanding action be taken to repair the damage done to Majorca's image, more promotion, the withdrawal of the tourist tax and fresh incentives for more private investment in the industry. All members of the federation agreed that Majorca will not be able to compete with other destinations, such as Turkey, Croatia, Morocco, and Egypt if the tourist industry is not in the correct condition and armed with the tools to defend itself.