Thursday, December 08, 2011

The Great (Tourism) Reform Act

The new tourism law is still only in draft form. On Monday it was put out for "public exhibition". What this means in practice is that sectors of the tourism industry can scrutinise it in order to ensure that their interests are being catered for. In theory, anyone can suggest modification, but it will fall only to the loudest and strongest to be heard or to effect amendment. And guess who they are.

Pedro Iriondo, the president of the Mallorca Tourist Board (Fomento del Turismo), while generally applauding the draft law, has also offered some criticism. "Everything is focused on resolving problems of the hotel sector," he has said. But why should he or anyone be surprised by this?

Iriondo has gone on to say that the law should cover the interests of other sectors of the tourism industry. When pressed on which sectors, however, he mentioned that of the travel agencies. What is Iriondo's background? Travel agencies. Viajes Kontiki, to be precise.

In calling for other sectors' interests to be considered (and what, pray, are the concerns of the travel agencies), Iriondo and the tourist board have a credibility problem. It's true that it, via its "junta" members at any rate, represents different sectors (restaurants, transport, marinas and so on), but of those members, four are senior executives with leading hotel chains. The independence that the tourist board claims, and its values, to include "plurality", go only so far.

There is no genuinely independent tourism body in Mallorca. Were there, then it might just be prepared to point out that tourism, in terms of its accommodation, is more than simply hotels. But the alleged discrimination shown towards the holiday-let sector would still prevail. No one will stick up for it, because no one dares to.

The outcry from owners of property denied the opportunity to rent it out will ring around the letters pages. Here's my advice: don't waste your breath. No one who matters is listening or will listen, unless they are from the tourism ministry inspectorate or the Hacienda, or both.

Of course, the holiday-let sector isn't discriminated against to quite the extent that is suggested. The new law contemplates an extension of the commercialisation of properties on "rustic" land and of holiday homes which are detached or semi-detached. It is the private apartment which really bears the brunt of the discrimination and of an absence of procedure by which it can be "regularised".

While the government's taking up of arms and mounting of a crusade against illegal accommodation is the headliner to grab the attention of the indignant property owner, there are other aspects of the draft law that are worthy of attention as well, and not just the changes of use that the hotels are to be permitted to undertake.

The director of the Mallorca hoteliers federation, Inma Benito, has come out with an intriguing statement. It is one to do with all-inclusives. She has said that the current all-inclusive offer needs to be revised profoundly and a consensus arrived at. What she has also alluded to is the need for spend to reach out to the bars and restaurants in tourism areas. The tourism law says nothing about all-inclusives per se with one indirect exception: that the taking of food and drink outside a hotel will be prohibited.

One presumes this means no more "picnics" being taken out of hotels and a way of tackling the unedifying sight of tourists wandering along streets with plastic glasses of beer or heading off to beaches with plates of food. But how this prohibition will be policed is another matter.

Nevertheless, if the hotels are serious about revising all-inclusives and can work this into the bill, this might just be the best thing to come out of the new law.

I'm speculating, but what they may be referring to, and this would be in line with one of the new law's main aims of effecting a general upgrading of hotel stock, is the fact that all-inclusive has to mean all-inclusive, i.e. the standard of service would result in many three-star hotels simply not being capable of meeting the standard. There could also be some suggestion that the hotels are contemplating the type of "mixed" all-inclusive whereby local bars and restaurants become a part of the all-inclusive offer. We'll see, but it is encouraging that the hotels appear finally to recognise that there is an issue.

The new law won't be to everyone's liking, but its reform and the reforms it will enable (to misuse "reforms" in the Spanglish sense to apply to building) may just prove to be a part of the strategic plan that the tourism industry has long demanded.


Any comments to andrew@thealcudiaguide.com please.

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