It is rather ironic really. For the last three years the local tourism industry has been talking about raising prices and the local government introduced the tourist tax. It wasn't a question of whether tourists would be coming to the island, it was a case of how much more they would be paying for the privilege.
But that was then and this is now. Hoteliers have been forced to slash their prices because of a lack of demand, and as a direct result some people have paid less for their holidays than they did last year. Also, as a result of the heavy discounting, there is concern that perhaps Majorca is attracting the sort of tourist many do not want; the so-called tourist of excesses. So it is back to square one.
As I have said in this space before, the Balearics were warned that summer 2019 wouldn't be a good season because of competition from cheaper destinations and economic problems in Britain and Germany. Unfortunately, these fears were not taken on board and we are now in this difficult position. But the discounting does not stop with just hotel prices. Shops in Palma seem to be slashing their prices and many other businesses have been forced to reduce their prices as well.
I sincerely believe that this summer season will be a watershed for the industry. No longer can Majorca take for granted that tourists will come on holiday here and price is very important. Value for money is vital in the tourist industry and we shouldn't forget that.