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Prices not protests explain the slump in German tourism in Mallorca

German tourism went into reverse in May and the trend has continued

German football fans in Playa de Palma | Photo: Teresa Ayuga

| Palma |

A fall of more than eight per cent in July confirmed a downward trend in German tourism in Mallorca that had started in May. The fall in May followed a prolonged period of growth - 10% on average. Protests aren't really considered to be a factor, the main reason being the German economy.

Álvaro Blanco is the director of Turespaña's bureau in Berlin. He is clear that "the economic situation in Germany isn't helping". Referring to a fall in German GDP, rising unemployment and increased prices for products and services in Germany, he says these are all affecting foreign holiday destinations as well as Germany as a destination.

The rise in prices in Mallorca - and where German tourism in the Balearics is concerned, it is more than 90% in Mallorca - has coincided with the domestic economic conditions and is resulting in holidaymakers turning to more affordable destinations.

Carlos Cendra, marketing and communications director for Mabrian, the tourism data consultancy that provides information to the Balearic Government and island councils, points to a comparison with Antalya and the Turkish Riviera. Flight capacity for Antalya has increased eight per cent this summer. The average hotel rate per night in July and August was €92; in the Balearics this was €292. "The German consumer climate is, in general, less optimistic, and this reduces spending intentions. The German tourist market is very sensitive to price fluctuations, and when the consumer climate is less encouraging, this sensitivity is greater."

The German Consul in Mallorca, Wolfgang Engstler, says "German tourists are having to pay more attention to their budgets and can no longer spend so much money on holiday". "Given that flights and hotels in Mallorca have risen significantly in price, there is generally less money left for other purposes. This also applies to Germany itself, where there are complaints from restaurants. More and more people cannot afford to dine out due to the rising cost of living; they are avoiding eating out."

The protests have been given much coverage by the German media, but Engstler doesn't believe these are decisive in explaining a fall in tourist numbers. "For families, the evolution of prices, coupled with lower budgets, are the decisive factors."

Cendra accepts that protests may affect travel intentions at the time of booking, but he doesn't see the protests having any visible effects on German demand, adding that the overall visitor satisfaction index with the Balearic tourism product and security has been increasing in recent seasons. Nevertheless, he feels that the impact of protests on the overall perception of the destination "is indeed an issue that requires attention in order to prevent the idea that travellers are not welcome or that German tourists can no longer feel at home, a key factor for this market".

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