Balearics has death wish.

He said that the two hikes could seriously damage the tourist industry on which the country's economy depends.
At a time when the Balearics' main competitors are fighting hard to expand and, in the case of those countries hit by the Arab Spring, recuperate their markets, Gual de Torrella told the President of the Balearics Jose Ramon Bauza, yesterday that faced with more expensive holidays and in resort prices and disruption by industrial action, potential visitors will simply go elsewhere. “We are facing serious market threats and the government should be doing all it can to protect and help the tourist industry.
And, the British tourist industry and leading tour operators share similar concerns.
Hugh Morgan, managing director of Monarch Travel Group, told the Bulletin yesterday that the Balearics appears to have a “death wish.” “Hiking VAT rates on hotels and other service ‘could cripple' tourism in the UK's largest outbound market.
Morgan, said: “I understand the government will be looking at ways out of this crisis, but it would kill the goose that lays the golden egg. I just hope that common sense will prevail. “As we saw last week, the market is starting to move with Britons sick and tired of the dreadful weather, attracted by the strong pound and not that excited about the Olympics. “But, with places like Greece as cheap as chips, Egypt making a big push and Morocco and Tunisia seriously dominating the market, any further price hikes on holidays to Spain will just put people off. “Its still a price sensitive market and I say it every year, when it comes to price, people book with their feet. “Why are tourists such an easy option, why does Spain always penalise holiday makers? They are what the country's crumbling economy is based on - so don't turn them away. “We're doing all we can to promote the Balearics and mainland Spain but we can't force people to go where they don't want to, especially if it's more expensive than elsewhere. “On average, British families spend between 400 and 700 euros when they are on holiday. “Just do the maths, if we are paying 50 euros per hotel room and we're now having to add an extra ten percent to that, the customer is going to have to pay as some point and that, coupled with the rise in airport taxes, adds up,” he added.

Bill Allen, managing director of On Holiday Group, said it could push some Spanish hoteliers “over the edge” and hit operators reliant on the Spanish market. “If it increased by 10 percent, hotels would be forced to adjust prices and some would not be able to bear that,” Allen told Travel Weekly.