Since 2011 and the start of the Meliá project in Magalluf, the group’s hotels, now all of four-star category, have realised growth in revenue of over 60% and have given a RevPar rating of 48% (RevPar being the ratio of average revenue per available room). On top of this improved hotel performance, there has also been a 40% increase in recruitment which has raised contributions to the social security system by just under 50%. In August specifically, the RevPar of Meliá hotels was up by 17% compared with August last year, while revenues rose by 14% and average occupancy was at 88%, with two hotels fully occupied. The transformation of Magalluf represents a real change in its tourism model.
The figures show how the youth segment - that part attracted by excess and drunkenness - is declining and being replaced by a traditional, family tourism. In addition, the overseas markets providing the tourism are more diverse. Hence, there has been growth in the Swedish, German and Italian markets, which are reducing a dependency upon the British market.
The non-hotel complementary offer has an important role to play in this changing model. As Mark Hoddinott, Meliá’s director-general of real estate, points out: “the more affluent client who is interested in Magalluf needs to have a complementary offer whose quality is at the level of that of the hotels, because if not, this client base will go somewhere else.”
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The uncontrolled expansion of all inclusive hotels continues to devastate the bars and restaurants in Calvia's resorts. When accommodation, food, drink and entertainment are paid for in advance to the hotels, there is nothing the 'non hotel complementary offer' can do but close up. That's exactly what is happening on an alarming scale. Any increase in employment by the hotels will be more than offset by job losses in the bars and restaurants. The once thriving Calle Galeon in Magalluf is just one example. It is now almost completely closed up and derelict