Saturday, December 25, 2010

A Christmas Carol: Mallorca's tourism funding

Father Christmas, in the form of the national tourism secretary, Joan Mesquida, has filled the stocking of the Tiny Tim, impoverished tourism coffers of Mallorca and the islands. The Scrooges of central government have been visited by the ghost of tourism past and been reminded as to how things once were and by the ghost of tourism future to show how things might be, were they not to mend their miserly ways.

Well, something like this anyway. The new compassion will see President Cratchit and his starving regional family tucking into a turkey of 54 million euros of tourism money in 2011. For now, they can eat well on the plump bird, but will it turn out to be a turkey of a different variety? What's the money to be spent on?

The breast will go towards the Playa de Palma and Palacio de Congresos projects and towards something called the "Plataforma Digital Turística"; the legs (around 20 million euros) will go on promoting "alternative" tourism, i.e. that designed to cope with the problems caused by seasonality. One gets an awful sinking feeling and an awful vision of Marley's ghost taunting President Cratchit that this might not be the tourism future he would hope for.

Playa de Palma and its failings we know about. The Palacio de Congresos, notwithstanding Mesquida's Christmas bonus, is short of at least 30 million euros to enable the project to advance. The money will be welcome, but will it guarantee that the project is completed any time soon?

Then there is this "Plataforma". This was heralded with much fanfare during the ITB fair in Berlin in March. The trumpets were blown, but the marching band was nowhere to be seen or heard. Where was the money to pay for it? Microsoft had agreed to write the score, but Bill Gates' largesse and philanthropy do not extend to governmental projects being undertaken for nothing. There is no such thing as a free launch of a new technology initiative.

What is the "Plataforma" exactly? Peio Oiz of Microsoft has said that it isn't a website so much as a "unique store" or interconnected digital warehouse if you like, the main advantage of which will be to bring together technology systems of tour operators, travel agencies, hotels, the complementary sector (restaurants and so on) and others. It will bring pretty much everything to do with tourism together in one place, but as a system for business efficiency as opposed to one that actively promotes to the wider tourism world.

What it really means in practice, however, remains to be seen. We should find out by April next year. Thereafter, we might also discover what sort of benefits it brings. It is, though, further evidence of the type of thing Mallorca does well, which is the development of technologies for tourism purposes. The investment seems sound enough.

Finally, there is the 20 million for "alternative tourism". Not for the first time, you do have to wonder as to where responsibilities lie. Only a couple of days before the announcement of the 54 million euros windfall, the Council of Mallorca was saying that the Mallorca Tourism Foundation would be spending 3.6 million euros next year on its promotion.

You lose track of who does what and indeed of what promotional bodies there are. The Foundation will, though, be concentrating on what it calls "product clubs" - film, conventions, golf, hiking, cycling, yachting, culture and emerging markets. This does at least seem to chime with the 20 million euros that are being earmarked from central government's funds. But, as has been asked before, why are there different agencies doing essentially the same things?

The best you can say is that they do at least sing from the same hymn sheet, but perhaps this is also indicative of a problem that besets tourism decision-making. It is group thought, predicated on these "product clubs", some of which seem tenuous in terms of benefits they might actually deliver. But it is unchallenged groupthink. It is taken as gospel, and the choirs sing the same hymn over and over to little effect.

The Christmas present is not one to be rejected and placed on eBay, but before we start mistaking it too much as the cheer of the ghost of Christmas present, it should be noted that nowhere is there any mention of the bread and butter of mainstream summer tourism and its promotion. The money from central government will come in handy, but let's not forget that the tourism ministry is in debt. What the funding for promotion in 2011 is to be is not clear.

Sadly, one also has to be sceptical about many of the announcements that are made about tourism. Go back to the fair in Berlin in March and the tourism minister, Joana Barceló, was adding to the news about the "Plataforma" by saying that there was to be a "total union" of all those in the tourist sector, a kind of grand meeting to address competitiveness. It was going to take place in September. So where the Dickens was it?


Any comments to andrew@thealcudiaguide.com please.

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