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Thomas Cook cost Playa de Palma hotels 14 million

Playa de Palma hoteliers raise a Christmas toast at their annual assembly. | M.A. CAÑELLAS

| Palma |

The Playa de Palma hoteliers association calculates that the collapse of Thomas Cook represented a loss of 14 million euros for its members. Included in this were 10.5 million euros unpaid invoices and 2.8 million euros in bookings.

The association held its annual assembly yesterday. The president, Isabel Vidal, presented a report which showed that the year will end with there having been average occupancy of 78.35%. In 2018 this was 79.4%.

The best average occupancy rate - 83.4% - has been achieved by five-star hotels. For four-star it has been 78.7%; three-star 73.8%; and two-star 80.9%.

German tourism has accounted for 68% of the total. The second largest market, a long way behind the German, has been Spanish (5.3%).

Vidal highlighted efforts which have been made in renovating hotels. Redevelopment of sixty hotels with almost 21,000 beds has been undertaken since 2012. Three new hotels have been built over the seven-year period, there are now four five-star hotels, and the number with four-star classification has risen from 24 to 56.

The hoteliers, the assembly heard, had considered modernisation to be “absolutely necessary” and that the redevelopment of hotel stock should be accompanied by similar efforts by other sectors.

There was a renewed call for “essential” work by Palma and Llucmajor town halls and a reminder of a recent study which found over 3,000 deficiencies in the resort area; these related, among other things, to street lighting and pavements.

On the tourist tax, it was noted that some 15 million euros have been collected in Playa de Palma this year. However, only 700,000 euros are to be spent on the area; this is a project for a green corridor to Sant Jordi. The hoteliers association called for half of the tax revenue raised in Playa de Palma to be invested in the resort.

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