BCM, where there are some events scheduled for October. | Archive

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Mallorca's complementary sector has been lamenting a less than positive season ever since the restaurants suggested a 20% fall in turnover in June. The bars and restaurants are the chief attention-grabbers, but other parts of the complementary sector have been indicating their own downturns. Nightlife has been one of them, the ABONE association now estimating a 15% drop in turnover compared with 2023.

According to association president Miguel Pérez-Marsá, July and August were reasonable months. The rest of the season has been fairly flat. "September was quite difficult. Some have only been opening at the weekend. There isn't much activity."

This being the case, some establishments in Mallorca's resorts are already closing for the season. Pérez-Marsá is the CEO of the Cursach Group. BCM in Magalluf is the group's most famous establishment. There was a closing party at BCM on September 28, even though there are events scheduled for October.

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He says: "The truth is that the season has not met expectations. The post-pandemic champagne effect, with many people travelling and with a desire to spend, has ended. We have not had the activity that we had in 2022 and 2023."

The restaurants have said it and so do the clubs. The lack of spending is at least partly attributable to the increase in the costs of travel and accommodation. "Tourists are continuing to travel, but with less money to spend because an increasingly greater part of the expenditure is concentrated on flights and hotels. Everything has gone up and travellers are simply trying to adjust their budgets." (It might be noted that no association has ever suggested that protests have had any influence on their business.)

Statistics indicate that the number of tourists increased by 4.7% over the first eight months of 2024 and that spending rose by 12%. However, the spending statistics can give a false impression because the cost of package holidays or of independent travel plus accommodation is such a major element. These statistics have never been entirely satisfactory as they don't clearly indicate what is being spent on what when people are in their destinations.

When they speak about falls in turnover, one has to take the associations at their word, always taking into account that there will have been establishments that have enjoyed a good season. A general snapshot doesn't necessarily reveal the complete picture. And it is just perhaps worth bearing in mind that the restaurants and nightlife are covered by the same collective bargaining agreement as the hotels. Negotiations for 2025 (and on) are due, the unions agitating for a plus five per cent pay rise next year.