Monday, November 15, 2010

And Cancel Christmas

By the roundabout at the top of Puerto Alcúdia's "Mile", a single festive "Bones Festes" sign swings forlornly in the autumn wind. Alcúdia town hall will have to decide whether the rest of the usual lights will go up this Christmas. They might put them up, but whether they switch them on or have them on for only limited periods will also need to be decided. The town hall's electricity bill has increased by a massive 40% in a year. "A barbarity," has said mayor Llompart of the rise, one caused partly by new infrastructure in the town but also by - the target of Sr. Llompart's upset - GESA's prices.

Alcúdia has already taken the decision to switch off much of the town's street lighting at midnight, including that by the old town's walls. Alcúdia like a Christmas tree? Tonight or any other night over the festivities, the city won't belong to me or to you. We won't be able to find our way round. Angels of half-light. If that. Not that it probably matters. No one much will be around. They'll be holed up at home, huddled over the radiators, reduced in the number switched on, the result also of higher electricity prices, or crouched by a gas heater, breathing in butane that has also gone up.

Christmas is coming. The goose is getting thin.

You can get goose for your Christmas lunch in Mallorca, just as you can get turkey. But what has been a meat-buying trend to downscale for some time will carry over into Christmas. Rabbit is going to be popular. And some of it may well be wild. The fincas are alive with the sound of guns, not all of them necessarily those of the licensed hunters.

FACUA, the consumers association, reckons that household spending in the Balearics as a whole will be down by some six per cent this Christmas. While the purchase of gifts is likely to remain at the same sort of level as last year, there is one element of Christmas cheer that has taken a nosedive, and not only at Christmas. Alcohol. Since 2007 sales of beer have slumped by 35%; those of higher alcohol content, spirits etc., by 27%. You can see the evidence of this in the supermarkets. Prominent, so as to grab the attention of shop traffic, are low offers on the likes of cava. Even checkout girls, unused to the role of playing salespeople, are drawing attention to the cheap booze.

It isn't of course just the supermarkets which have been hit and which have had to introduce more basic lines. There are the bars and liquor stores as well. 30,000 of them across Spain have closed since the crisis took a hold. The "El Gordo" Christmas lottery will still attract its syndicates willing to fork out for what are expensive tickets, but lotteries in general, games of bingo and slot machines are also victims of lower spend on things other than necessities.

And with the slump in sales comes also a slump in revenue - that to the government, one only partially addressed by the increase in IVA. There is a further non-necessity that has seen the treasury's coffers emptied: the sale of cigarettes. In 2008 this fell by a massive 37% in Mallorca. So maybe tourists don't spend all their money on fags after all. The upward adjustment in prices on tobacco last year, primarily duty, has enabled the government to recoup some of the loss, but as with more or less everything, the curve heads downwards.

This will be an austerity Christmas, implies FACUA. Appropriately enough amidst the austerity of governmental measures which show no sign of bringing confidence back to consumers or to business. And the fear is that the new year might even herald something worse. The markets have sunk their teeth into Greece and spat it out, just as they are doing to Ireland, despite its regular austerity revisions. Portugal could be on its way out of the euro anyway. So then there's Spain.

The new year will also see the introduction of the smoking ban. Predictions of a 15% fall in bar sales as a result would come on top of the decline in alcohol consumption that has already been experienced. The bars and restaurants have started a campaign to stop the ban or to at least delay its introduction. It's a bit late, one would think. But maybe they have a point in that now is probably not the best time to bring it in.

For now is the time of less, less, ever less. Except when it's more, more, ever more. Like the cost of electricity. Town halls in penury, the lights going out all over Alcúdia and elsewhere in Mallorca. Little to celebrate during the festive season, with less-extravagant feasts and fewer cups that cheer. It would be nice to say "merry Christmas", but it would be said through gritted teeth. As for a happy new year, the bars will be the first ones to assess the accuracy of that, come 2 January. And after that ...?


Any comments to andrew@thealcudiaguide.com please.

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