MALLORCA TODAY - Playa de Palma regeneration set to go ahead with private money

The on-off regeneration of Playa de Palma, a flagship project for the transformation of Mallorca's resorts and one that had seemed to be lost in all the talk of the Meliá plans to redevelop part of Magalluf, looks as though it is back on track. A new plan, which involves some 400 million euros of investment, will see hotel places reduced by some seven or eight thousand and promenades, gardens etc. renovated. It is envisaged that the remodelling of hotels will result in 20% of them being five-star, 60% being four-star and only 20% remaining as three-star. The level of expropriation required, which had been a cause of public opposition under previous plans, will not be as great. Of the 400 million, threequarters of it will come from the private sector. Work is due to take place until 2015, though it will be concentrated after 2012 owing to liquidity shortages in the public sector.