Panic in Majorca as restaurants are told to slash their prices

A senior figure within the Majorcan hospitality industry has called for restaurants to slice their prices in order to combat a fall in spending.

Juanmi Ferrer, the new president of the CAEB Restaurants Association in Majorca, claimed that the post-pandemic boom witnessed on the island is coming to an end as the disposable income of travellers decreases.

According to Mr Ferrer, price increases on the island in recent years were driven by tourists saving during the pandemic and having more to spend in the years following, something that is now coming to an end.

Mr Ferrer warns that Majorca faces a unique challenge in the coming years as it is subject to higher costs than similar destinations on the Spanish mainland.

He said: “Rents are generally higher, products cost more and salaries are higher.”

It is rumoured that trade unions on the island are seeking a pay rise of around 5% in 2025 for their members, a significant increase at a time where visitor numbers are decreasing.

In 2024, visitors to the island spent less during their stay whilst hotels and flights have increased in price.

Mr Ferrer said: “If a family has 2,000 euros for their holidays, a few years ago they spent 1,000 on the hotel and transport and had another 1,000 to spend on restaurants, excursions, shopping. 

“Now they have to pay 1,600 for the accommodation and transport and have 400 euros left for everything else.”

Restaurants on the island are still turning a profit, but profits have decreased over the last year by approximately 20%.

The CAEB’s former president and current vice president Alfonso Robledo said: “We have to continue betting on quality, but by offering more competitive prices. 

“That means replacing some products with others.”