Tourism protest in Palma in July. | Pilar Pellicer

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The latest report from the Exceltur alliance for tourism excellence points to a hotel sector in the Balearics that is currently in very good business health.

Based on the profitability indicator that Exceltur uses (RevPAR), six municipalities - three in Ibiza, three in Mallorca - are in Spain's top-ten most profitable tourist municipalities. Muro (Playa de Muro), Santanyi (Cala d'Or, Cala Figuera, Portopetro) and Calvia (Magaluf, Palmanova, Santa Ponsa and others) make the top ten; Alcudia, Palma and Sant Llorenç are in the top 20.

Hotel occupancy over the summer was good - around 90% - and the hotels were able to maintain this occupancy or even slightly increase it while at the same time charging higher prices.

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In Exceltur's view, a transition to a "higher-category accommodation offer" has been the key to current performance. "A significant investment in product renewal" has had a direct impact on prices (and their upward trend) and also on jobs; a higher quality hotel offer means a greater demand for employees.

The report also considers the tourism protests. In this regard, it emphasises the "limited role" that the hotel sector has played in the increase in the supply of tourist accommodation and so therefore to the perception of saturation and overtourism. Instead, it places the focus on holiday rentals.

Exceltur blames the rentals sector for the saturation and the protests. "The overwhelming increase in supply and demand" of this tourist accommodation segment "has been the real trigger factor for episodes of citizen protest against tourism". This is due to the difficulties created in accessing affordable housing.

* The Exceltur alliance does include hotel groups. Its president is the CEO of Meliá Hotels International, Gabriel Escarrer. The membership is predominantly from the hotel sector, but certainly not exclusively. Here's a link: Nuestros Socios – Exceltur