Mallorca shops report sharp decline in tourist spending

Shops in Mallorca's resorts report a significant decline in tourist spending amid illegal sales and all-inclusive packages.

Mallorca shops face serious drop in tourist spending

Pepe Tirado, president of the Acotur association, reports that while tourist numbers in Mallorca remain high, spending in local shops has dropped dramatically, averaging a reduction of up to 20% this summer. He points to an increase in illegal street selling, particularly in busy areas like Magaluf and Playa de Palma. This trend undermines established businesses that pay taxes. Moreover, the rise of all-inclusive hotel packages is thought to contribute to lower spending at local establishments. Despite full occupancy in hotels, the financial benefit to shops is waning. In addition, markets across the island, like Arta, are crowded with visitors but are also experiencing falling sales. However, supermarkets are seeing an uptick in sales as they adapt to consumer preferences, indicating a shift in the retail landscape.

This decline in spending highlights significant challenges for Mallorca's local economy. While the influx of tourists is a positive sign, their spending habits reflect changing preferences, particularly towards all-inclusive deals. This shift not only threatens traditional retail but also suggests a potential long-term impact on the island's economic diversity. If illegal street vendors continue to thrive, established shops may face even harsher conditions. Moreover, the contrast between the flourishing supermarket sector and struggling local businesses raises questions about the sustainability of tourist-centric economies. The current situation calls for urgent discussions among stakeholders to realign strategies that can benefit both tourists and local enterprises.

Highlights

The situation in Mallorca underscores the importance of developing a balanced tourism strategy.