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By H. Carter BALEARIC Tourism Minister Joan Flaquer was full of optimism yesterday after having been informed by some of Britain's top tour operators that they are cutting back hotel and flight capacity in the region by as much as 40 percent next summer.

Flaquer proclaimed at the World Travel Market in London yesterday that the gap caused by tour operator cut backs to the Balearics will be plugged by independent travellers.

Flaquer did, however, admit that he was sorry that some, “not all,” tour operators have down-sized their summer 2005 operations because of the fall in demand for package holidays in the Balearics. But, he believes that the region will experience a sharp rise in the number of independent travellers. “What we should be worrying about is making sure that our resorts are in the best condition possible, that we are as friendly and welcoming as always and that we provide the very bests service,” the minister said. “I'm convinced that, if we can do all this, the Balearics will always be a very attractive and popular destination for the British,” he added in London yesterday.

What is more, the Balearics, and Spanish tourist industry in general, is losing its share of the market as competing destinations report records increase in visitors from the Balearics' major feeder markets.

A report published yesterday by Palma's Centre for Economic Investigation set up by Sa Nostra bank and the University, makes it clear that the Balearics is losing its share of the Mediterranean sun and beach market.

While 6.7 million tourists came here during the second quarter of this year, 0.8 percent more than the same period last year, Tunisia and Turkey posted record increases in tourism of 17.1 and 23 percent respectively while Croatia and Malta enjoyed mini-booms of 4.7 and four percent. Between May and August, Croatia received 6.8 million tourist and Turkey 11.9 million, double the figures four years ago. Economists at the centre said that the Balearics is “evidently” losing its market quota and that, “year by year” more and more people looking for sun and beach holidays in the Mediterranean are heading for competing destinations. The report's conclusion also warns that the repercussions of further fuel price hikes could be much tougher next year.