The president of the company, Palma tourism councillor Joana Maria Adrover, points out that this amount will be greater from the second year of the contract. For the first year, Meliá can choose between paying the 2.1 million euros annual rental or 5.59% of total revenue from all activities, which include the hotel. In either case, the daily revenue is at least 5,000 euros.
The Palacio ended up costing the public purse 107.5 million euros; this figure doesn't include any possible remaining compensation payments. Adrover is therefore pleased that it should now finally be generating some income.
There remains a question as to how much of this income will find its way to the town hall, which had to borrow 40 million euros in order to complete the building. There is an agreement with the regional government for the town hall to be paid. Last year two million euros were handed over out of the eight million which had been expected. The town hall is hopeful of receiving ten million this year.
The Palacio company is owned 50:50 by the town hall and government. But the two have yet to finally agree how much they each actually contributed to the cost of the complex.
The official opening of the Palacio will be on 1 April, and the first conference/exhibition of great note will be Volkswagen's in October. Some 3,000 people are expected to attend.
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