Despite an increase in the number of tourists in Mallorca, restaurant revenues are falling. CAEB Restauración Mallorca expects the island's restaurant sector's August turnover to decline by 12 to 14 percent compared to the same period last year. The overall annual decline is estimated to be between 6 and 8 percent.

Juan Miguel Ferrer, President of CAEB Restauración Mallorca, stated that this situation highlights the current state of the sector and Mallorca's future tourism model. Ferrer pointed out that the increase in visitor numbers does not boost consumption in the destination. He noted that an increasingly larger portion of tourists' budgets is spent before arriving on the island.

Tourist Budgets Go Towards Flights and Accommodation

In an interview with Última Hora, Ferrer stated, "Despite hosting more tourists, we are generating less turnover, and this should set off all alarm bells."

According to Ferrer, who stated that a significant reason for this development is the rise in flight ticket and accommodation prices, tourists previously spent 30-40 percent of their holiday budgets on transportation and accommodation, whereas this rate can now reach up to 70 percent.

Thus, visitors arrive in Mallorca having already spent a significant portion of their budgets. The money that can be allocated to restaurants, shopping, culture, and other local services consequently decreases.

Restaurant Costs Are Also Rising

The pressure on the sector does not stem solely from tourists' changing spending habits. Ferrer emphasized that increases in personnel expenses, raw materials, energy, and rents have significantly raised businesses' costs.

This situation makes it difficult for restaurants to maintain competitive prices. According to Ferrer's example, a traditional daily menu offered for 17 euros a few years ago would need to be sold for approximately 30-35 euros today to maintain the same level of profitability. However, such a price level can negatively impact customers' decision to dine at a restaurant.

The Goal Is Not More Tourists, But Higher-Spending Tourists

Ferrer, arguing that the emerging data necessitates a broader discussion on Mallorca's long-term tourism policy, opposed measuring success solely by the number of visitors.

He stated that instead of attracting more tourists, the island should focus on visitors who spend more in the destination. Ferrer cited Playa de Palma's transformation towards a higher-quality tourism product as an example.

"I don't necessarily want more customers; I prefer fewer but better customers," said Ferrer, emphasizing that consideration should be given to how much of the tourism revenue truly remains in the local economy.

Tourism Debate Extends to Housing and Transportation

Developments in the restaurant sector also coincide with similar problems observed in retail trade in Mallorca. Despite strong tourist mobility, some retail businesses on the island had reported sales losses of up to 15 percent.

According to Ferrer, this situation shows that tourism policy cannot be limited to restaurants and hotels. He stated that a long-term approach covering the next 20 or 30 years needs to be developed by evaluating transportation, housing, and economic activities together.

Ferrer also drew attention to the increasing difficulty of generational change in the restaurant sector, warning that the absence of a new generation to take over businesses in many establishments could increase the weight of foreign investors in the sector.

Mallorca's August data once again reveals that the increase in tourist numbers and the economic performance of local businesses do not always move in the same direction.