Price reductions of up to 30% are having to be offered for holiday rental accommodation because of a fall in demand from Majorca’s two main tourism markets - the UK and Germany.
Miquel Cifre is the president of the association for holiday rental businesses (not to be confused with Habtur, the association for holiday rentals).
According to Cifre, the British market has slipped 20% and the German ten per cent.
“The worrying thing is that these two countries represent 70% of our part of the rental market. There is concern across the whole sector.”
He explains that discounting for July and August has not happened before.
It has been necessary because of a fall in demand, while - he believes - there needs to be an improvement in competitiveness. In this respect he is alluding to better standard of accommodation and facilities, while accepting that investment might not be forthcoming just at the moment because of a slump in demand. Although Cifre wants more competitiveness, the general quality and diversity of holiday rentals in Majorca and elsewhere in the Balearics are reasons why the islands are attractive to foreign holidaymakers.
As with the holiday industry in general, foreign competition is a factor behind the fall in bookings. Prices in the likes of Turkey are lower.
Revenue, adds Cifre, is down by around 15%, though he does anticipate there being something of a last-minute reactivation of the market.
A further factor, again one that has influenced reservations across the board in the holiday industry, is decent weather in the UK and Germany.
Certain parts of Majorca are affected negatively more than others because of high prices for accommodation.
Where Cifre’s association is concerned, this accommodation is principally villas.