The small and medium size businesses association, in Majorca, revealed yesterday that the tourists are spending arguably less this year. The food and beverages section of this organization reported that the cafés, bars and restaurants situated in the tourist areas around the coastline said that the trade was 20 to 30 % less this July than that of 2007. Due to the credit crunch that the western parts of the world experienced, many such areas are suffering from low levels of trade and commerce. People do not have a lot of money to spend on a holiday now when compared to previous seasons.
The businesses association publicised its findings after interviews with around 50 of its members. It pointed out that another factor responsible for the downturn in these figures is that the all-inclusive hotel requires the clients to pay for lodging, food and drink in advance. This leaves them with little money to spend at the other restaurants of the island. It is reported that Soller is one of the worst affected regions this season.
PIMEM, the business association of Majorca said that spending lever of the customers is considerably low. Cafés, Bars and restaurants at S’Arenal, Can Pastilla and Cala Ratjada reported serious decline in the business. At Porto Cristo in Manacor district, the association has blamed the “advance” payment of the all-inclusive hotel offer for low trade conditions.
In the capital Palma, the situation is different. People come here to sight-see in spite of bad weather and hence, the tables are filled but the spokespersons of the restaurant industry say that the levels at which the customers are ready to spend have fallen by about twenty percent.
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