Tourists at Palma Cathedral last week. | Photo: MDB
Andrew EdePere CerónPalma18/10/2026 08:11
Mallorca's tourism sector is facing a low season with concerns about inflation and geopolitics, added to which are ongoing issues with staff shortages.
Despite the record tourism and employment figures registered so far this year, business leaders say this growth has not benefited all sectors equally. They fear that a further surge in prices could weaken consumer demand and jeopardise the profitability of many businesses.
The president of the Confederation of Balearic Business Associations, Carmen Planas, has referred to "high levels of inflation, the likes of which we haven't seen in some four years", while Jordi Mora, the president of the Pimem federation of small to medium-sized business associations, says his members are "very concerned about inflation and the possibility that it could spiral into an inflationary crisis". Rising costs of supplies and services are squeezing profit margins, and he points to the risk of further interest rate hikes. "That would be very challenging for the economy, as it could stifle economic activity."
Mora adds: "We are seeing record figures for job creation, tourist arrivals, and flights at the airport. However, the increase in tourist spending has been concentrated primarily on accommodation and transport. Meanwhile, the retail, restaurant and other service sectors have seen much more modest growth - certain sectors are capturing a very large slice of the tourism pie." he laments.
With the high season coming to an end, many restaurants are currently weighing up whether it is profitable to remain open through the winter months or if they should instead close until the 2027 tourist season. César Amable, president of the Pimem restaurants association, says "extending operating hours makes sense when there is sufficient demand, but you cannot expect business owners to keep their doors open if the numbers don't add up".
In his view, the heavy burden of business costs, the difficulty in finding staff and uncertainty regarding consumer spending are shaping the outlook for the restaurant sector in Mallorca this winter. "The situation for each business depends on its location and specific characteristics. It is one thing for visitors to arrive, but quite another for that spending to actually benefit restaurants."
While retail and nightlife face similarly challenging scenarios, the transport sector and the hotels anticipate a winter of stability. Petra Mut of the transport federation points out that during the low-season months, coach operators partially offset the decline in tourism-related demand by handling school transport, conferences, weddings, events, and holiday programmes for seniors. Mut views the timing of Easter, which is in late March 2027, as a positive factor, as it will allow for an earlier start to the next season. Activity in the freight transport sector remains stable, with the exception of a decline in demand from the construction industry.
One out of every five hotels in Mallorca will stay open during the low season, with activity levels expected to be very similar to those of the previous year. The Mallorca Hoteliers Federation anticipates a winter characterised by stable tourism demand.
Vice-president María José Aguiló notes that tourism activity is progressively extending into months traditionally considered part of the low season. "We can no longer speak of a season concentrated into just four or five months." Hotels are increasingly moving their opening dates forward to February, for example.