Tag: economy

Why Tourism is Crucial for Mallorca’s Economy

We live in a democratic world, thankfully, and that gives us the opportunity for free speech and the right to protest. So, I have no problem with the people who were protesting in Mallorca a few weeks ago. Where I do have a problem is with the mixed messages that seemed to be coming out.

My understanding was that they were there to protest about tourist overcrowding and the lack of affordable housing. But there were also people waving Palestinian flags and calling for Mallorcan independence. When the messages start to become mixed, the actual purpose of the protest, in my opinion, loses credibility.

The protesters claimed there were 30,000 people, while the police said there were 8,000. Who do you believe? Well, even if you go with what the protesters claim, that’s just 3% of the overall population. Hardly a majority, is it?

In my opinion, they shouldn’t be protesting against tourism or tourists. The issue lies with the government—and more importantly, with previous governments—and their lack of investment in social housing. You could also argue that some of the protesters are being hypocritical. Why, you ask? Well, for two reasons: one, you can almost guarantee that each and every one of them has a family member or friend who earns their living through tourism. And two, do these people not go on holiday themselves? If they do, they are contributing to the very thing they are protesting about!

The question is: if you’re really pushing back against tourism, what else are we able to offer? We’re not exactly in the heart of the manufacturing world, are we? Like it or not, tourism is a major pillar of our economy, contributing approximately 45% of our total GDP. Some analyses suggest that tourism’s influence extends even further, potentially impacting up to 90% of the island’s economic activity.

We should be embracing what we have and looking for solutions to the problem. We have a great example of how holiday destinations can evolve right on our doorstep. Magaluf is, in my opinion, a shining example of how a resort once much derided can reinvent itself. If you don’t believe me, go and see for yourself.

UK-EU Deal: Impact on Mallorca Travelers and Businesses

There seemed to be quite a lot of backlash this week following Sir Keir Starmer’s UK Government agreement with the EU. Now, depending on which paper you read—and its political leaning—you’ll see varying reports on the reaction. The Labour-supporting Mirror said, “Deal is Win-Win,” while The Guardian reported, “EU deal puts Britain back on world stage.” On the other side, the Conservative-supporting Mail declared, “Starmer’s Surrender,” and The Daily Telegraph (or “Torygraph” as it’s sometimes known) ran with, “Kiss goodbye to Brexit.”

With any deal, there are always going to be winners and losers—it’s pretty much impossible to keep everyone happy. As I always say, the devil is in the detail. While there are various headlines surrounding what’s been discussed, a lot of it is still in the planning stage and should have a large TBC written next to it.

Purely from a selfish point of view, and focusing on the parts that matter to us here in Mallorca, I think it’s a great deal for travellers and businesses.

The food deal—or to give it its full name, the Sanitary and Phytosanitary (SPS) Agreement—would eliminate some of the trade barriers erected during Brexit. This would provide provisioners, supermarkets, and their suppliers with the opportunity to import more UK produce more quickly and easily. I imagine this could result in cost savings, so hopefully we’ll see a drop in prices too.

Also, for businesses here wanting to sell their produce in the UK, the previous barriers should now be removed, making it easier and cheaper to export.

Using e-Gates-There is a suggestion that holidaymakers could avoid “huge queues” at airports through an agreement allowing British travellers to use e-Gates at European airports. The agreement states that there will be “no legal barriers to e-Gate use for British nationals travelling to and from member states”—but nothing firmer yet. It’s up to individual member states to implement this. I’m not sure if Palma Airport’s owner, AENA, will be too happy, after redesigning Terminal A to cater solely for British tourists and passengers from non-Schengen countries. But still a positive step for UK travelers around Europe.

A youth mobility scheme—which the government has now rebranded as a “youth experience scheme”—also appears to be in the works. The terms must be mutually agreed, as the final numbers, how the cap will apply, and the time limits all still need to be worked out.

If it does happen, I think it will be great news not only for young adults who want to travel and work, but also for businesses here, which are crying out for young workers. I do hope the Spanish Government acts quickly on this. It benefits not only young Brits wanting to come here, but also Spanish young adults, who should have a reciprocal arrangement.

As I said above, all these so-called deals still need some meat on the bone—they need to be fully negotiated. But in my opinion, the ones that affect us represent a positive step in the right direction. I had that opportunity as a young person, and I didn’t look back. I, for one, would like my children to have the same opportunities.

Is This Just a Way To Get More Money Out Of Us?

I read with interest the comments made by Easyjet Holidays Chief Executive Garry Wilson and reported in the Majorca Daily Bulletin newspaper this week. He was talking at the ABTA convention in Greece the previous week. He commented that some destinations were introducing what he called “environmental fees.”

“While I understand the ethos, we need to understand what you’re doing with that money.” Wilson said it would be “understandable” if taxes were introduced with a ‘direct link’ to initiatives such as installing systems that automatically switch off air-conditioning and electric sockets when hotel rooms are empty. But he said if the revenue simply “goes into a big pot”, holidaymakers will think “this is just a way to get more money out of me”. Wilson said taxes were “going up and up and up when it comes to travel”.

Now on the one hand I totally agree with him on being as transparent as you can on where all the money is going. I wrote this in 2018, “Just a thought, why isn’t the Government promoting what they are spending the Tourist Tax money on? A video on that massive screen as you come through arrivals at the airport or pictures on the walls saying “last year we raised….and this is what we have spent the money on. Keeping Mallorca the way we all love it for now and for future generations.” Get Rafa Nadal to narrate the video, as he’s a Worldwide name that everybody knows and loves.”

It’s not rocket science, be upfront and proud of what you are doing. Which is basically what Mr Wilson is saying. Where I find his comments slightly disingenuous is when he says  “holidaymakers will think “this is just a way to get more money out of me”. Wilson said taxes were “going up and up and up when it comes to travel”.

Now I have to admit that EasyJet are my no-frills airline of choice but, this is a bit of the pot calling the kettle black, surely? All low-cost airlines and tour operators are always looking at ways to get more money from holidaymakers. It sometimes costs you more for a suitcase than it does a person these days! Not forgetting to add those other optional taxes such as choose my seat, car hire, insurance and a hotel room. They’ll be asking us to pay to enter the loo soon!