Gloomy Easter tourism forecast

MADRID
HOTEL occupancy rates in the Balearics over the Easter holiday period are registering 65 percent full but the figures are not encouraging as under two thirds (60 percent) of the hotels in the Islands will be open for this period.

Although a report released yesterday by the Spanish Confederation of Hotels and Tourist Accommodation (Cehat) declared “moderate optimism” over the 75 percent occupancy rate across the country this Easter, the Balearics is a clear 10 points under the average. The downturn is believed to be a direct result of the current financial crisis. Ibiza, however, is bucking the trend as estimates for the coming holiday break show that hotels there will be 85 percent full. “We're not completely happy about the situation,” said Cehat chief, Joan Molas, yesterday “but considering the economic situation, we're fairly hopeful.” The situation had reportedly improved dramatically since the beginning of March when bookings had only reached 30 percent of capacity. He said that hotels need to offer some attractive discounts and adjust their prices because visitors simply can't afford top rates. He recommended that town-based hotels drop their tariffs by between 12 and 15 percent, and those on the coast offering sun, sea and sand holidays by between 5 and 8 percent.

Molas said that in order to escape from financial doom and gloom, people in key client countries such as the United Kingdom and Germany have not given up on their holidays but are cutting the number of days away from home and are opting for Spanish destinations as opposed to going further afield. He nevertheless explained how important clients from elsewhere in Spain were as it is precisely the Spaniards themselves who go to make up 70 percent of hotel reservations at Easter. He added that last minute bookings, of which there are traditionally many at this time, may well boost the figures. Tourist zones in Andalucia and the eastern Mediterranean sea board were topping the popularity ratings, said Cehat.