Mallorca hoteliers hit by discount eastern Mediterranean destinations

by | Jun 19, 2019 | General News

Egypt, one of the Mediterranean destinations that captures large shares of European tourism market

Re-emerging destinations such as Turkey and Egypt reportedly capturing large shares of European tourism market, hurting traditional players

Formerly thriving Mediterranean destinations which were hit by a fall in tourism due to regional instability are undergoing recovery in their tourism sectors thanks to huge discounts

This puts pressure on stalwart tourist locations such as Mallorca to compete.

We find out more.

The battle for the eastern Med

Hoteliers in Mallorca are trying not to panic after nearby destinations such as Turkey, Egypt and Tunisia are launching a price-drop offensive in a bid to woo tourists back to their shores.

These countries, previously rock-solid tourist destinations, were hit hard by the drop of visitor numbers in the years after the Arab Spring, where people were put off from booking holidays there due to the region’s political instability.

However, hotels in Turkey and North Africa are fighting to claw back a share of the tourism market, which has historically seen large numbers of British and German tourists arriving in the summer months.

Their strategy is to achieve 100% occupation of their hotels by offering huge discounts on resort packages, with some hotels managing to drop prices as low as €28 per night for ten-day half-board packages.

The knock-on effect for Mallorca

Mallorca, along with the other Balearic Islands of Menorca, Ibiza and Formentera, cannot compete.

Isla del Espalmador, Eivissa, Spain

Ciudadela, Menorca, Spain

Beach Port de Soller, Palma de Mallorca, Spain

A local hotelier spoke of the situation, saying, “We expected a fall during this tourist season, but not to this extent. We cannot compete with Turkey and Egypt’s prices because it would negatively affect our balance sheet.”

This low-cost tsunami has hit Mallorca hard, and hoteliers on the island are failing to get over 40% occupancy in their properties, a scenario without precedent for these traditionally solid high-season hotels.

Airlines respond to new demand

Another factor affecting this unexpected turn of events is the airline routes operating in the region.

British, Scandinavian and German airlines are keeping the routes to the Balearic Islands operational for the moment. However, some routes are being shifted towards the eastern Mediterranean because of increased demand for flights to Turkey, Egypt and Tunisia.

The airlines say they will still travel to the Son Sant Joan airport in Palma de Mallorca, but that additional eastward routes will be scheduled if necessary, to keep up with the changes in local business activity.

Let’s take a look at a few other projects currently underway in Mediterranean destinations:

Six Senses Ibiza Resort

Swissotel Citystars Sharm El Sheikh Hotel & Residences

Delano Cesme


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