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Mallorca: The transformation of tourism is a benchmark | Prices in focus

MONEY OPINION TOURISM

Prices are key to transforming tourism in Mallorca and the Balearic Islands and preventing overtourism, according to Aurelio Vázquez, a leading figure in the hotel industry in Mallorca and the islands in general.

At a time of great debate about the Mallorcan tourism model, the former CEO of Iberostar and current executive at the Summum Group, argues that the key challenge is to transform the tourism offering. “There is a lot of talk about the problems arising from tourist flows, believing that the solution lies there, but the solution is the transformation of supply, quantitatively and qualitatively. Meanwhile, I am puzzled to hear the situation described in such an alarming way, using terms such as overcrowding. We have a number of problems and someone called them overcrowding. But the problem here is the lack of political management over the last 15 years,” he says.

The transformation, he argues, will come from incentives for investment, as with the 2012 Tourism Law (People’s Party Law), which allowed investments of one billion euros to be made.

It has often been said over the years that Mallorca and the Balearic Islands could “die” of success, but he points out that the islands could “die of inaction”. In this regard, it supports the government’s social and political pact for sustainability.

“What the president of the Balearic Islands, Marga Prohens, has done is very clever. We will tackle the real problems by taking everyone into account – residents, representatives of institutions, and so on. The problem is not tourist flows, but the restructuring of supply, as travelers will continue to visit Mallorca. After all, how will they be prevented? Will police be stationed at their airports of origin to block them or restrict air traffic?” asks Mr Vázquez.

Margalida Ramis from environmentalists GOB has criticised the pact, arguing that all it seeks is to shift islands towards elite tourism. In this regard, the hon. Mr Vázquez stresses that brave decisions must be taken. “The democratisation of tourism sounds great, but we need the tourist with high added value. And for that, we need to offer a product that not everyone can buy,” he says.

This, then, is related to price, he says, remaining firm in the view that prices should be high. “If you have a good deal, the segment of travelers with more purchasing power will come to the destination. If prices are reduced, the destination will attract a wider market segment that we are not interested in. Lowering prices is therefore not the right way to deal with this.”

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