The price increase compared to last year is hardly a surprise, given that the tourism sector was surviving on the offers. At the same time, inflation helped push up average spending per person per stay by €211 more than in 2019.

For the first four months of 2022, the number of tourists in the Balearic Islands was 88% of what it was from January to April 2019. Spending, however, increased by 10%. In May, the element of the consumer price index for tourism and hotels rose by 8%. Hotel prices are, on average, up ten percent year on year.

The biggest increases are for two to three star hotels; increases for upscale hotels were more modest. Revenue per available room increased by 60% compared to a year ago.

According to figures from the Balearic Institute of Statistics, the average expenditure per stay by foreign visitors in April 2019 was 917 euros; in April this year, this amounted to 1,128 euros. Scandinavian tourists in the lead with 1,325 euros per person, followed by the Swiss (1,235), the British (1,170) and the Germans (1,107).

Savings accumulated over the past two summers are said to have made it easier for this year’s visitors to afford the price hikes. In the case of Spanish tourists, however, their expenses are much lower – 543 euros per person, some 90 euros more than in 2019. It should be noted, however, that a good part of the national tourism from January to April was Imserso. Spanish seniors on vacation are not known for their spending, while house prices are set at a lower rate.

Inflation will affect profitability. Jaime Monserrat, CEO of tourism analysts Dingus, says “there is a recovery and growth in demand, but inflation is going to have a significant impact on profitability; it will be difficult to regain the profit levels needed to to be able to invest. He estimates that these levels will only be reached in 2024. The President of Habtur Holiday rents association, Toni Barceló, says a price increase was intended to make up for losses in 2020 and 2021, “but profits are going to be diluted by higher costs”.

The Balearic government has pointed the finger at the islands attracting a tourist “who spends more” and the fact that the increase in prices does not lead to a decrease in the number of visitors. Tourism Minister Iago Negueruela says it’s still too early to know what real impact inflation will have on business profitability. But despite the fact that the levels forecast a few months ago may not be reached, “the season is going to show a very positive final balance”.