President of ABTA, Justin Fleming, said the August bank holiday is usually very busy as it marks the end of summer. He said that this year also, a large number of people are enjoying the warm summer. The summer favourites, mainland Spain and Greece will also be full of people.

Walkouts at Stansted and Gatwick on 29 August and bank holiday Monday were brought to an end after talks between Unite unions, the GMB and employers Swissport Strikes on 27 August and 1 September at Manchester had also been cancelled. Another GMB strike, however, is still due to be staged on Monday.

Airfield Services staff had rejected a 1.5 percent pay hike. They said that the amount was paltry. Gary Pearce from GMB said that they have a new improved offer after the talks at conciliation service ACAS. He said that because of this improved offer, all the strikes were suspended until they get the reaction of the staff. A spokesperson for Unite said that the industrial action has been suspended and also that after 12 hours of discussion at Acas, now they have a revised offer with revisions made and they would now survey the members.

Many prospective purchasers who are looking for a business for sale in Majorca are expected to use the holiday period as a fact finder. We at Target Mallorca normally have several would be business buyers over during this period.

www.youtube.com/watch?v=RAMs2RCzmqM

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.

www.youtube.com/watch?v=CFGwY6PbbcI

There are a selection of businesses normally for sale in the resort of S’Illot. These can range from British owned bars to Spanish restaurants and the occasional shop. S’Illot itself is a quieter resort although has grown in recent years to meet its neighbour Cala Bona. This has created additional business for the bars in the area. Buying a business in S’Illot can be a good investment if you are careful about the location.

Please scroll down the page for more detailed resort information.

www.youtube.com/watch?v=JTc6uSOoMwY

Resort Information -- S’Illot

The resorts of S’Illot and its nearest neighbour Sa Coma, are part of the municipal district of Sant Llorenç des Cardassar, and are situated along the east coast of Majorca, neatly sandwiched between the resorts of Cala Millor and Porto Cristo.

Public transport around all of the east coast is at best “unreliable”, but for the very brave or very foolish, buses do run into Palma 4 times each day during the summer, inland to Manacor 9 times a day, south to the Caves of Drach 5 times a day, and north to the resort of Cala Millor 10 times each day. Over the years many visitors to Mallorca have asked us for information on bus timetables, and although our general advice is the “sit and wait, and enjoy the sun”, timetables are published each year on the bus stops throughout the town and also on local bus operator’s Aumasa web site, although, clearly no responsibility can be accepted as to either the content or accuracy of information provided by these external sources.

Most visitors to S’Illot would be surprised to learn that until the late 1970′s the east coast of Majorca did actually have its own railway line running from Manacor to Arta, passing through the local towns of Sant Llorenç and Son Carrió. Although the grand station of “Pou Vell” still remains in the centre of Sant Llorenç, sadly there are no plans to reinstate this line, which for a relatively small investment of the much hated “tourist tax”, would undoubtedly prove to be both a major tourist attraction and amenity for the area.

Unlike nearby Sa Coma, the resort of S’Illot is not a modern purpose built holiday resort, but a traditional Mallorcan fishing village that really only started to adapt during the mid 1980′s to meet the ever increasing demand for tourist accommodation on the island. Visitors to S’Illot will often stand and stare as the few remaining fishing boats here are hauled up each day, over the rocks and onto a concrete ramp at the end of the beach.

Over the last 25 years or so, S’Illot has continued to grow in a fairly controlled manner by Mallorcan standards. In all fairness to the local council, considerable efforts have clearly been made to maintain “green zones” and to extend protection over areas of special environmental interest, the most notable of these being the Punta de n’Amer headland which we’ll cover in more detail on our Attractions page, and it is sincerely hoped that this policy is allowed to continue into the long term against the ever increasing demand for tourist beds.

A wide traffic free promenade also runs through S’Illot, north towards the resort of Sa Coma and south to the smaller sheltered beach of Cala Moreya, which you may sometimes see written as Cala Moraia. If during your stay here you venture into Sa Coma, don’t expect to find a mirror image of S’Illot, as most visitors find the contrast between the two resorts to be quite surprising.

If you are looking for all night karaoke bars or night clubs with foam parties every night, I am afraid that S’Illot just will not appeal to you. Evening entertainment here is generally hotel based, although the resort does have a small number of lively bars, but even these tend to have few customers after about midnight reflecting the family market that the town attracts. However, if you ever tire of S’Illot and are looking for a wider selection of bars and restaurants, the “bright lights” of the more lively Cala Millor are only around 5 minutes away by taxi.

Although on a freehold property, the banks in Spain may lend up to 60% of the amount, they will probably not be interested in financing the leasehold or rental business.

It may be possible to try to negotiate the terms directly with the business seller for the business, however; you have to understand that the seller would deal cautiously at this point of time as he hardly has anything in terms of security once he signs it over and there will probably be someone else interested in the business who has the money already available.

We can make introductions to banks that have their documentation in English and where with some additional security you may be able to obtain a “Credit Policy” which is similar to a UK overdraft. This may be available to help with refurbishment, but do not rely on getting this as part of your financial plan when buying a business.

If you have UK property then you may be able to secure a loan using that as security to buy a Traspaso based business.

Banking

We believe that the banking service in Mallorca is very simple and easy to understand. However it is different from the UK and you need to be aware of those differences.
There is no cheque clearing system here. If you write a cheque then it will appear in the recipients account as soon as he presents it, likewise it will be gone from your account at the same time.
To be honest cheques are not that common over here, most people still preferring and trusting the cash!
Credit cards, until very recently, were hardly ever seen over here, but they are now becoming more common.
Debit cards are usually provided by the bank when you open a current account but be warned. They normally have a daily spending limit on them This will catch you out and could be embarrassing. Even though you have the money in your account it will still stop you getting it via debit card if you go over your daily limit.
When using a debit card at a supermarket you will probably be asked for your passport as identification so carry it with you.

We would assist in opening a suitable bank account for you. All that is needed is your NIE number and Passport.

It will take 2 – 3 days to get the Sterling transferred from your UK account to your Mallorca account and the same will be converted into Euros at the exchange rate on that particular day.

Many banks here have agreements with UK banks to give preferential UK to Mallorca transfers.

Taxation

You will be pleased to know that the taxes in Mallorca are normally lower than in UK.
There are also two different methods of business Taxation to consider.  A standard system where you pay taxation on your profit and a modular system where various aspects of your business are assessed and then you pay a fixed amount per quarter regardless of your turnover and profit. It is important you choose the best method for your particular business.

There are varying rates of IVA (VAT) here in Mallorca, from 16% which is the standard rate for the usual things you would sell in your bar such as beer and spirits. There are other rates of IVA but your Gestoria will make sure you are charging and book keeping at the correct rates.

It is usual here and more or less expected, that you do not declare all your takings from your business, this is known as black money and the part you do declare is white money. This is why when you ask to view someones books over here you may not get the full picture of the true takings. Best if we don’t go into too much detail, suffice to say we can discuss this with you for any business that you decide to view!

Once again your Gestoria will advise on all the above.