There are two employers associations on the islands. The president of one of them, Baleval, is Othman Ktiri of the OK Group. He says that orders were being put in over the final quarter of 2022 and suggests that, unlike some times in the past, the purchase of vehicles will be easier for 2023.
He anticipates fewer problems than in previous years, especially in 2022 when there were issues with manufacturing. He expects that there will be at least as many cars on the islands as last year, and he has words for proposals to limit the numbers: "Limiting hire cars on the islands makes no sense. All it does is push up prices and affect people's mobility."
Ramón Reus, the president of the other association, Aevab, agrees with Ktiri that business forecasts for this year are good, but he adds that there are still "many uncertainties and that we must be aware of how tourist markets may evolve".
Reus is of the view that last year's price increases are here to stay. It's supply and demand, as he anticipates there being up to 75,000 vehicles in all and that there will never be a return to the 120,000 or so that represented the pre-pandemic maximum. A total of 75,000, he believes, is in line with sustainability policies.
2 comments
To be able to write a comment, you have to be registered and logged in
Stan The ManI doubt the tourist cars blocks up the roads around Palma, it's more the locals going to and from work who are the "culprits". How about taxing the locals having more than one car, that might be an other idea, to limit the cars on the roads, how come it's only the tourist who should be blamed, no matter what?
I would like to see less cars on the roads during the Summer. But the argument that it puts Hire Car prices up is perhaps a good reason to limit the number in use on the Summer roads. They contribute to many traffic jams,particularly around and in Palma. It will be interesting to see what happens to prices and Electricity supplies etc. when it is only Electric Hire Cars. Also when Hydrogen Cars are brought into use eventually.