As British tourists are finding to their cost, the pound's exchange rate with the euro has slumped significantly since the referendum result was announced. At its lowest level for 30 years, the slump is having an impact on resorts with high dependence on British visitors, such as Magalluf.
The businesses which seem to be being affected more than others include currency exchange bureau, stores selling alcohol and tobacconists. Toni Mayol, who runs a bureau on the Avenida Magalluf, says that the effect of Brexit has been disastrous. "The fall in turnover is massive. There are 70% fewer tourists coming to change their money, while those who are changing it only want minimum amounts."
The day before Brexit, the pound was worth 1.26 euros. By the weekend it was down to 1.13 euros. A further decline that might see parity with the euro cannot be ruled out.
Harry Gregory, a Magalluf resident who works for a travel agency and with the sale of excursions, explains that for him, when he goes to Britain, there will be a benefit. "But for the British here, the fall in the value of the pound is bad. And it's bad both for them and for us. Fewer euros to the pound means spending less."
This said, in other resorts with high numbers of British tourists, such as Alcudia, local bars are still reporting brisk trade. For tobacconists, while there may be some drop in the volume of purchasing, the prices here are still very favourable compared to those in the UK. Tobacco is, for many tourists, one of their major items of expenditure.
Excursions which were pre-booked via the internet prior to Brexit will not be affected, though payment for them in-resort may be influenced by the drop in the pound's value. And there is always the tourist tax to factor in: the timing of its introduction couldn't have been much worse where the British traveller is concerned.
To this end, the national hoteliers federation CEHAT and the Exceltur alliance for touristic excellence have both pleaded with the Balearic government to postpone the tax, despite it having been introduced. At a meeting which included Pilar Carbonell, the regional director-general for tourism, this request was made. Carbonell noted it but thought that it would be impossible to postpone the tax.
As has been remarked several times, actual holidays are unlikely to be affected by either Brexit or the tax, given that they have been booked in advance and paid for. However, and while there isn't an abundance of late offers for the summer, British tourists may well think twice about booking later in the season.
The tourist industry is especially concerned about Minorca. Sixty per cent of that island's tourists are British, and Minorca is highly vulnerable because there isn't the diversity of air routes that Palma has. Juan Molas, the president of CEHAT, says that it would be a special gesture if the tax could be put on hold and particularly for Minorca.