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Squatters or not in Cala d'Or?

The squatters having left the Sol y Mar Aparthotel in Cala Bona, there has been a reminder of another case of squatting in tourist accommodation, this one in Cala d'Or. The Cala Bona occupation was described as unprecedented. Which was true in respect of an aparthotel or indeed a regular hotel. But the Cala d'Or affair involves tourist apartments and it has been ongoing for some five years.

It first really came to public attention in the autumn of 2023. The owner is Jordi Chalé. He had inherited the apartments in 2019. By September of 2020, he was reporting usurpation and trespass to the Guardia Civil. As he now says: "Here we are in 2025 trying to defend private property." To this day he doesn't know exactly how many apartments were occupied in all - seventy or so, around a half of the total. There have been high costs because the water and electricity weren't cut off; his lawyers advised him that maintaining the services would help his case.

The squatters' legal representatives apparently demanded 10,000 euros for each apartment for the squatters to leave. Many of them did leave. It's reckoned there are only nine people remaining - "They are part of the same gypsy family who claim to have been living here for sixteen years."

This is indeed what they claim, their version being that they have been there for 16 years and that there was a rental contract with the previous owner. They worked for him at the adjoining hotel and say they even looked after him when he was unwell. They therefore insist that they are not squatters and maintain they have sought to negotiate payment of rent to Jordi Chalé but that he has declined this.

Different versions. Do the alleged squatters have a case? Jordi Chalé would say no, while there do appear to have been squatters in the past who didn't have any claim. The matter is now pending a court decision, whenever this may be.

Occupying old bank branches

One of the more notorious squatting episodes involved a closed bank branch in Palma that was right opposite the local police headquarters. This squat attracted gangs of youths. There were drugs, there were fights, there were regular police interventions before the bank was finally secured after all the squatters had left.

In the Camp d'en Serralta district on Monday night, residents were concerned that another former bank branch was the target for potential squatters. Two suspicious individuals were seen and they were looking for a way in. The police turned up, but the two had gone, only to return later. However, they were unable to gain access and on Tuesday the alarm company sent a team to check on and enhance security. Nothing happened on this occasion, but it was a tale of both the constant threat of squatting and of greater awareness among residents. If suspicions are aroused, they act.

Living in a car

We seem to never be far away from a story about problems with housing, and one has arisen in Magalluf, where a couple have been living in their car in a private car park since December. They had lost a mortgage lawsuit, had to sell their property and were left with nowhere to live and with no money. Lorraine, 58, receives a monthly pension of 480 euros; José, 61, is waiting to receive a disability pension. They can't afford local prices for rented accommodation. José is critical of Calvia Town Hall social services. "They haven't helped us." This said, they were offered places in a shelter but declined these as their dog would be put in a pound.

Tenants' debts

It isn't perhaps a surprise that the level of rental debt in the Balearics is the second highest in Spain. In 2024, money owed by tenants was 10,233.66 euros on average, according to the Madrid-based Observatorio del Alquiler (Rental Observatory). Only Catalonia had a higher level - 10,996.79 euros. The national average was 7,957.60 euros.

The Balearics ranking so high is nothing new, but the observatory points out that the region is below average when it comes to the actual number of tenants who owe rent. The average debt is a reflection of the fact that rents are so high in the Balearics compared with much of the country. It would have been interesting to learn from the study the exact numbers of debtors and the percentage who are so-called tenant-squatters - people who sign contracts, pay some rent to begin with, but them declare themselves vulnerable and so squat.

Palma's divided foreign population

A reason for problems with access to housing is of course the increasing population, which has been fuelled mainly by immigration. In Palma, the foreign share of the adult population has doubled since 2004; it's now 28%. Town hall population figures, which differ to those provided by Spain's National Statistics Institute, indicate that the total population increased by 100,000 to 479,000 from 2004 to 2024 and that the actual number of foreign adults has gone up from 44,000 to 113,000.

Pere Salvà, emeritus professor of human geography at the University of the Balearic Islands, believes that Palma's foreign population is divided in terms of the motivation for immigration (and relative wealth) and is therefore following a 'Californian model'. There are immigrant workers in construction and hospitality (principally Colombian and Moroccan), northern Europeans who mainly work for tourism companies, and also northern Europeans who come just for residential purposes. "Europeans have bought entire neighbourhoods," Salvà notes.

Ineffective cruise ships' agreement

Palma has been at the centre of intense debate about cruise ships for several years. At the end of 2021 there was an agreement between the Balearic Government and cruise operators that set certain limits on ships. One of the criteria was to achieve a daily average of 2,500 passengers and no more. Figures from the Balearic Ports Authority indicate that from March to November last year this average was exceeded every month. The peak month for ships was October (82 stopovers); the average was more than three times the target. The total number of ships scheduled for 2025 is lower than pre-pandemic 2019 - 541 against 592 - but it is up by 47 and with 41,000 more passengers compared with 2024.

The agreement, which has never been legally binding as it has always been goodwill, is due to end in 2026. The Balearic Government is being urged to renew it. But renew what exactly? At present it doesn't appear to be very effective. Within the context of the overtourism debate, the government has said very little about cruise ships. It may now be waiting for any conclusions and proposals to emerge from the sustainability pact working parties. These are expected towards the end of February.

Tourist tax hike not till 2026?

The tourist tax is something else that is pending the working parties' deliberations. President Marga Prohens is saying that there is a "very clear" proposal from the government to increase the rate of the tax in high summer (June to August). "We have to talk about limits and take measures to contain growth." The government would ideally therefore like a high-summer increase this year as well as an elimination of the tax in the low season (or part of it). There is though an acceptance that time would be tight. The earliest a decision could be taken would be March. The hoteliers, who don't of course want an increase, say that if there must be one, it should be delayed until 2026. The good money is increasingly on this being the case.

A restaurants' non-issue?

Mallorca's restaurants would no doubt argue that any increase in the tax will further limit tourists' spending capacity and dent turnover. They spent much of the second half of 2024 complaining about lower spending. Another issue the restaurants have consistently highlighted is shortage of staff. The president of the CAEB Restaurants Association, Juanmi Ferrer, says this shortage is a reason why bars and restaurants are increasingly looking at alternative payment arrangements. Rather than waiters and waitresses collecting the bills, there is automation and there are arrangements for customers to pay at tills. The automation includes payment via QR codes.

While there may indeed be an issue, is it being somewhat overstated? It does rather depend, as payment at tills has been common enough at some establishments. Customers have always done this. As to any suggestion that alternative payment systems could signal a threat to the future of waiter/waitress jobs, why would they? Customers would still need serving.