Spanish Hospitality Industry Sounds Alarm Over Declining Tourist Numbers
Travel bosses in Spain have issued a stark warning following what they describe as a "disastrous" beginning to 2026. The Balearic Islands, renowned holiday destinations including Majorca, Ibiza, and Menorca, have experienced a noticeable reduction in restaurant patronage throughout 2025. Data from Delectatech indicates this decline is directly linked to escalating prices, revealing a consistent downward trend over the year.
Significant Drop in Balearic Islands Compared to Mainland
While regions like the Basque Country and Catalonia reported modest decreases of approximately 1%, the Balearic Islands were disproportionately impacted, suffering a 3% fall in customer numbers. Although these percentages may appear minor, they hold considerable weight within the hospitality sector, where profit margins are notoriously slim.
According to reports from Majorca Daily News, the downturn is primarily attributed to price increases on the islands. In contrast, mainland areas where dining out remains more affordable, such as Castile-La Mancha and Extremadura, actually witnessed growth in customer traffic. The analysis concludes, "This pattern implies consumers have reached a price threshold, limiting further hikes in pricier regions and indicating a broader restraint in real expenditure, even in areas traditionally less sensitive to cost."
Pessimism Prevails for 2026 Outlook
The hospitality sector expresses deep concern regarding prospects for 2026. Juanmi Ferrer, president of the CAEB Restaurants Association representing Balearic establishments, remarked that the year commenced with a "disastrous January" and is anticipated to mirror or slightly worsen the previous year's performance.
Ferrer elaborated, "Restaurant proprietors are extremely reluctant to increase prices, as this inevitably results in fewer patrons. This year, we will endeavour to absorb those additional three to four percentage points of inflation as much as feasibly possible."
Government Considers Discount Scheme to Stimulate Demand
In response to dwindling customer numbers, the Balearic government is contemplating introducing a restaurant discount initiative, akin to a recently launched programme supporting small retailers. The retail scheme provides all residents aged over 16 with four vouchers valued at €15 each, applicable to purchases exceeding €30, aiming to encourage local spending.
Overtourism Protests and Shifting Tourist Patterns
Last summer, reports emerged that certain Majorca resorts were "completely dead," with Miguel Pérez‑Marsá, head of the nightlife association, stating, "The tourists we desire are being deterred; they no longer feel welcome and are opting for alternative destinations." This sentiment arose amidst a season of overtourism demonstrations across mainland Spain, the Canary Islands, and the Balearic Islands. In June 2025, approximately 5,000 residents marched in Majorca, urging governmental action to address overtourism.
At the World Travel Market in London last year, Ibiza's Minister of Tourism, Jaume Bauza, confirmed visitor numbers had declined, with 20,000 fewer British tourists during the peak season of 2025 compared to the prior year. Some tourism experts speculate this shift may be due to holidaymakers rescheduling trips to October and November to capitalise on reduced prices.
Criticism of Luxury Tourism and Social Impact
Ibiza's local community has also voiced criticism regarding the surge in luxury tourism, which has inflated costs and even compelled workers to reside in temporary camps. Sofìa Ribas, founder of (Ma) Learning Lab for Sustainable Transformation, previously told the Mirror, "As a native of Ibiza, born and raised here, we experience the deteriorating situation annually. There is an increasing prevalence of luxury tourism. It simply feels unjust. Ibiza was once a place where everyone mingled. Now, there is a growing visibility of VIPs; it is evolving into something distinct from the island's original essence."
