Few sectors have escaped the 2008 economic crisis unscathed. The tourism industry is no exception. Tourism officials and business owners in Spain wait anxiously to see how popular destinations like Majorca will fare. Majorca tourism experts predict a mix of good news and bad for the island.
The island of Majorca has been a favorite with foreign tourists since the 1950s. It was at this time that merchants began working with the government in an effort to boost the economy. They began an aggressive marketing campaign of the island to Europeans, to Germans in particular.
Majorca tourism packages became popular within just a few years. The island now graces the top of the popularity list for vacations. Businesses on the island have relied heavily on this fact for over 50 years for their economic prosperity.
It's little wonder that Majorca businesses panicked when the world market began to crash and burn in 2008. The island's population, after all, barely grazes 800,000. Yet it maintains the highest Gross Domestic Product in Spain. Its GDP is, in fact, over 50 percent higher than Spain's average. More than two thirds of Majorca's working population is employed in the tourism sector. Majorca businesses and workers stand to suffer significantly if the economic crunch reaches the island's graceful shores.
High tourist season has just begun to get underway as 2008 draws to a close. It remains difficult to accurately predict just how the economic crunch will affect Majorca tourism. However, tourism watchers have been somewhat pleasantly surprised to date. The numbers of British and French visitors to Majorca have dropped. Despite this, the number of German tourists has actually risen compared to previous years. "Thank God for the Germans!" says German-born Majorca tourism board president Alvaro Middelmann.
The increase in German visitors has somewhat made up for the loss in tourists from other European areas. However, the Germans are also notorious spendthrifts. The money they are spending (or not spending, depending on how one looks at it) isn't making up for the economic losses.
Hotel and resort owners on Majorca remain skeptical. Financial losses haven't been as significant as predicted as of yet. Outlook though is at its lowest in recent history for many of these owners.
Merchants and resorts are caught in a conundrum. They are finding it difficult to cover costs as the world market suffers. The rising cost of fuel earlier in 2008 was also eating into profits. However, many have been reluctant to raise prices to cover the losses. Rising prices are just one more discouragement to travelers. Few despise rising prices more than the Germans, who are currently the staple of Majorca tourism.
Merchants are beginning to feel a little more hopeful though as the cost of oil has fallen recently. It remains to be seen whether this will bring any significant economic relief to Majorca tourism in the long run. Final numbers and profit reports will not be available until early 2009.
Majorca tourism officials and business owners on the island wait to see how 2008 plays out. They continue to make efforts to market the island even as they fear what lies ahead in 2009.
Majorca's natural appeal hasn't changed even though the economy falters. Foreigners continue to speak highly of the Balearic Island. The sun keeps shining and the water sparkling, beckoning those looking for some relaxation. Perhaps Majorca tourism and businesses will bank on this fact as the tourist season kicks off.
Author Resource:-
Majorca holiday information is available at travel guide yourmajorca.net
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