Mallorca under pressure: decline in sales despite flood of tourists!

Mallorca under pressure: decline in sales despite flood of tourists!

The holiday season on Mallorca is in full swing, but the joy of the increase in tourist numbers is being greatly dampened by the significant decline in sales in the catering industry. Loud watson.de The situation is particularly tense in popular destinations such as Playa de Palma, Palma Center, Magaluf, Alcúdia, Can Picafort and Sa Coma. Despite an expected influx of visitors during the long Ascension weekend, many restaurateurs are complaining about falling customer frequency.

The peak season, which normally generates high sales, fell short of expectations. Statistics show that restaurant and bar visits in May fell by double-digit percentages compared to the previous year. César Amable, president of the restaurateurs' association PINEM-Restauració, reports declines in sales of up to 20%. This development is reinforced by changing consumer behavior, tighter budgets, rising costs for transport and accommodation and unfavorable weather.

Economic warning signs

What is particularly worrying is the fact that the restaurant industry experienced a decline in sales of 10 to 20 percent in the first quarter of 2025 compared to the previous year. This is based on information from mallorcamagazin.com out. Juan Miguel Ferrer, President of the Restoration Association, describes the situation as an economic warning signal, as the catering industry is often seen as an early indicator of the economic situation in Mallorca.

Although tourist numbers are at record levels, average consumption per guest is falling. Regions dominated by tourism are particularly feeling the negative effects. Nevertheless, in some areas such as Portixol and Plaça d'Espanya in Palma, there is a stabilization or even an increase in sales, which is attributed to urban planning improvements in the town hall.

Rising prices and cost pressure

Prices for flights and accommodation have increased noticeably in the run-up to the season - the average price for an overnight stay in a 4-star hotel is now 183 euros, 5% more expensive than last year. Vacation rentals have an inflation rate of 11%, while airfares have increased by up to 12% and car rental prices have increased by up to 40%. These increases mean that holidaymakers can spend less money on local restaurants.

Ferrer is therefore calling for quick countermeasures to protect the catering industry and the jobs associated with it. The pressure from high raw material costs and declining operating margins are endangering the island's economic stability, even in previously heavily frequented locations.

The last weekend in May is seen as a litmus test for how the season will develop. The operators hope that sales will stabilize in order to meet the challenges of the current market situation.