“UK credit crunch will not hit the Balearics”

PALMA
IGNACIO Vasallo, director of the Turespaña Spanish Tourist Board in London, one of the sponsors of this weekend's Triton Travel Group convention in Palma, told the Bulletin yesterday that, while the Spanish tourist industry is closely monitoring economic developments in the UK, “there is no need for alarm.” Vasallo revealed that summer holidays sales to Spain and the Balearics have performed extremely well during the first three months of this year in the UK.

He admitted that the holiday market is always pretty active during January because of the special deals offered by tour operators, keen to generate some early money, but he stressed that the market forecast is good for the Balearics this summer.

He shrugged off claims of an imminent recession explaining that Britain has enjoyed ten years of steady and sustained economic growth “so there is plenty in reserve to overcome any minor financial problems while the Spanish administration and tourist industry also has the expertise and financial support to respond to any upset in the market. “However, while the credit crunch may persuade British consumers to put off selling the house or buying a new car, it will not deter them from going on holiday this year.” Echoing what Triton chairman Colin Heal said on Thursday that the only alteration in people´s travel plans may be to reduce any long haul plans and opt for short haul destinations like the Balearics. “I am in regular contact with all the big tour operators and travel sector chiefs and there is no concern for the Spanish market. “Our relationship with the British market is solid and any fluctuation in sales is minimal. But, I expect sales and tourism figures to match last year or even perhaps show a slight increase of between one and two percent,” Vasallo said. And that is also despite the surge in strength of the Euro against the Pound which might have a negative impact on the market in 2009, but Vasallo does not believe it will take its toll on destinations like the Balearics this summer. “Spain is still one of the cheapest Euro-zone destinations so the slight increase in a bottle of beer, for example, will be offset by the cheap air fares to the Balearics and it is not going to turn people away,” he said.

He praised Majorca for having moved with the times and changing travel habits. “Palma has traditionally been the capital of a tourist island, but now the city is emerging as a tourist destination in its own right and that is thanks to improved infrastructure, the five star hotels, the growth in boutique hotels, the Sol Melia convention centre, Es Baluard art museum, Palma has changed a great deal over the past few years and has established its own market. “Outside of Palma, the traditional resorts have been renovated and rejuvenated and the remodeling of the Playa de Palma is going to be immensely positive for the island,” he said.

But, Vasallo did agree that Palma's retail sector should also try and adapt to the city's new role as a flourishing tourist destination and reconsider their opening times. “I can understand the British who are now used to 24/7 shopping feeling frustrated with the shops closing so long for lunch and at midday on Saturday,” he admitted.

The only problem the tour operators are reporting with the Balearics is in Minorca where the family holiday market appears to have stagnated but with regards to Majorca - Thomas Cook and First Choice, for example, are extremely optimistic.

Vasallo also claimed that holiday sales to the United States are not as buoyant as claimed. “The New York boom continues because Britons are going shopping with their Pounds but families need a 15-day package, at least, to go to the States and some consumers believe their money and time may be much better invested in short haul destinations like Majorca and the Balearics.”