Friday, August 19, 2011

The Good, The Bad And The Holiday Let

I'm going to give you a list of organisations. When you get to the end of the list, here are your questions - what do they have in common and what is missing? Here goes, and pay attention:

The hotel federations of Mallorca, Menorca, Ibiza and Formentera; the association of hotel chains; the association for agrotourism; the Mallorca Tourism Board; the chambers of commerce in Mallorca, Menorca and Ibiza; the federation of local authorities; the University of the Balearic Islands; the associations of small and medium-sized businesses in Mallorca, Menorca and Ibiza (PIMEM); the association of travel agents; the school of hostelry; airlines; tour operators; unions.

Ok, if you have said they have all been invited to form part of the Balearics Tourism Agency, then have a banana. This is indeed what they all have in common.

Pretty big agency, huh? Yes, but a reason behind them all joining the agency is to avoid duplications in tourism efforts. So, credit where credit's due. The agency may now sound unwieldy, but better this than numerous bodies here and there doing their own things.

But what of the second question? What's missing? Need some help? Just look at the list again. Which are the really big players? Tour operators, airlines, yes, but also the hotels. Still don't know the answer? This is a tourism agency, don't forget. Tourism requires accommodation. Are you getting warmer?

Nowhere in this coming together of pretty much all those who matter in Mallorca and Balearics tourism is any representation of non-hotel accommodation: the holiday lets. The tour operators are one player that has an interest in this type of accommodation, others do to a degree as well, but otherwise there is no voice at all.

Why isn't there? The obvious answer is that there is no body to represent what is a highly fragmented part of the local tourism industry. Even if there were, how well organised it would be would be open to question. There are all sorts of reasons why owners of holiday lets might not wish to be part of an organisation. This aside, the chances are that it wouldn't be invited anyway.

Two summers ago some grand strategy talking-shop was meant to have been organised by the tourism ministry. It never actually met, but had it done there were to have been two key problems to be addressed, those of seasonality and holiday lets. While mostly anyone associated with the tourism industry would agree that seasonality is a serious problem, only certain parties openly state that holiday lets are. Who were due to have been involved in this strategy talking-shop? The hotels and unions for a kick-off. Both of them antagonistic towards holiday lets.

Amongst the organisations being pulled into the tourism ministry's agency now, there are few which might speak out in favour of non-hotel accommodation. You might hope that the university would offer an independent view, for example. But as for others, they will mostly tow the line, the one that the hotels, the unions and therefore also the tourism ministry promote: that holiday lets are a bad thing.

Not completely a bad thing, as the tour operators will be quick to point out. But their interests lie with the regulated and registered villas of Mallorca. The airlines might also point out that holiday lets are not a bad thing. What about PIMEM? Where would it stand on the issue?

PIMEM has a bar and restaurant division. PIMEM is quite vocal on different matters, such as all-inclusives. A bad thing, it has been saying recently. It has also been saying that permission for hotels to convert to condohotels would be a good thing.

A hundred or so hotels are already said to be planning to sell off rooms and apartments in anticipation of a change to the tourism law which would permit condohotels and which would therefore create a type of residential tourism, akin to holiday lets but to the hotels' advantage.

PIMEM reckons this is a good idea because it isn't all-inclusive and because it would benefit its restaurant members, given the type of tourist it would attract.

But this is precisely the same argument regarding holiday lets. Or one of them. So why doesn't PIMEM come out and support these? Probably for the same reason that the tourism ministry won't. It doesn't want to upset the hotels.

The newly constituted tourism agency is a good thing in many respects, but in one, that of a whole sector of the tourism industry, it isn't. The momentum against holiday lets is unlikely to let up. Unless there are now voices at the agency to say otherwise, it is likely to get very much stronger.


Any comments to andrew@thealcudiaguide.com please.

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