German tour operators confidently expect a boom year for Spain as worried holidaymakers switch away from the Eastern Mediterranean but hoteliers are being warned against “excessive” price increases, fvw reports
Spain already had a record year in 2015 with an estimated 68 million international tourists, which was a 5% rise on the previous year. Tourism minister José Manuel Soria expects another good year in 2016 as the country profits from its image as a safe destination.
Gabriel Barceló, tourism minister of the Balearic Islands, told fvw, that the region has seen an “excellent” start to 2016 and predicted it is “very probable” that last year’s record figure of 13 million international visitors will rise to about 14 million this year. “We are lying well ahead of last year with bookings. All the Balearic Islands will be sold out this summer. But we hope for our competitors that the situation in North Africa calms down again soon,” he commented.
Many German tour operators already increased capacity significantly for Spain for their regular summer 2016 programmes, which went on sale last autumn. Events in the last few months, however, have driven them to add more capacity ready for a boom as consumers avoid destinations such as Turkey, Egypt and Tunisia.
Double-digit increases
This forward planning is already paying off with high double-digit increases in bookings for the Balearic Islands and the Canaries. “We think that Spain will again profit in 2016 from the tense situation in countries such as Tunisia or Egypt,” said Felicitas Schulte, product manager for specialist Ibero Tours, which has strong growth for the Canary Islands.
FTI, for example, has a strong increase in bookings for the Canary Islands where it has “the biggest programme in the company’s history” as well as for the Balearics and the mainland. “Spain is certainly an alternative for worried holidaymakers at present, but the positive figures of the last half-year are mostly based on the destination’s high popularity and the continuous development of the individual regions,” commented Manuel Morales, FTI’s Group Head of Destination Spain.
TUI has the highest growth for the Canaries, especially Gran Canaria, as well as good demand for the mainland, and has contracted additional capacity for Spain. CEO Fritz Joussen declared this week: “Our own hotels in destinations outside Turkey, such as Spain and the Canaries, are profiting from the shift in demand.”
Similarly, Dertour has a double-digit increase in Spain bookings while package brands ITS, Jahn Reisen and Travelix are seeing strong demand for Majorca and Ibiza, although mainland Spain is slightly weaker.
Alltours, expecting a strong Spain year, has increased capacity from Easter onwards by adding more charter flights to the Balearics and the Canaries. Thomas Cook has also increased capacity in Spain in response to stronger bookings.
Holiday home rentals
Holiday home rentals are also selling fast at present. Online portal Fincallorca, which rents out fincas and holiday homes, has a 30% rise in bookings at present. Managing director Ralf zur Linde said: “We are registering nearly 50% more enquiries on our website than in January 2015. Nearly 75% of our 250 most popular fincas are booked for the summer months of July to September. We’ve never seen such a run at the start of the year before.
“If we had the chance, we could rent twice as many properties on Majorca than there are for the peak season,” he added. “Whether hotels, flights, car rentals or fincas, Majorca will be an absolute top-seller this year. It’s highly probable that there won’t be a sizeable offer of last-minute trips this year.”
In response to this soaring demand, many Spanish hotels are opening earlier than usual for the summer season to welcome consumers who would normally spend Easter or spring holidays in warmer destinations further south, such as in North Africa.
At the same time, prices are also rising as hoteliers seek to adjust rates to stronger demand. “Prices are being increased everywhere where contracts allow,” commented the product manager of a large German tour operator. “Holidays in Spain will be more expensive.”
Impact of the new ‘eco-tax’
But experienced tourism figures are warning that the country cannot afford to go too far in this direction. “If we are excessive with prices, then we will suffer when competition intensifies again,” said Carmen Ferrer Torres, mayor of Santa Eularia on Ibiza who is a former Balearic Islands tourism minister.
Meanwhile, tourism minister Barceló played down the possible impact of the new ‘eco-tax’, which will be introduced for international tourists this summer, on consumer demand and highlighted the positive effects for the islands’ tourism infrastructure and the ongoing efforts to lengthen the season.
“The proceeds – we expect at least €50 million this year – will flow directly into improving the tourism infrastructure. For example, we will develop new cycling and hiking paths and cultural attractions will be better protected. The tourism offering will clearly improve so that holidaymakers get more for their money. I’m convinced people will understand the reform is not a tax against but for holidaymakers,” he told fvw.
