Fatal Attractions: IVA, weather and seasonality

You will know that the British can blame the wrong sort of snow for interruptions to public transport services. Did you also know that the Mallorcans can blame the wrong sort of heat for not getting punters through the turnstiles at attractions? If it's too hot and too sunny, then waterparks win out over other attractions that are indoors or mainly under cover. Well, blow me, I would never have thought this. And nor would I ever have thought that during a Mallorcan summer the weather might be hot and sunny. 

The Asociación Mallorquina de Actividades Turísticas (AMAT) was formed in 2001 and it comprises nineteen businesses engaged in different types of attraction, outdoors and indoors, daytime and evening. It is an association whose voice was rarely raised loudly until recently. This raising in volume coincided with the appointment of Palma Aquarium's Antonio González as its president. In April this year, as an example, the association launched an attack on the harm that all-inclusives were having on the island's attractions. It has now met with President Bauzá and has been telling the media about the problems that attractions face, one of which is the weather.

Hot and sunny weather is a lame reason to give for the fact that waterparks might perform better than other attractions. It would be a good reason if hot and sunny weather was not common, but it is. Surely, the association has noticed this, but then among its members there is one business that appears to be absent which might be able to make the point: Aspro Ocio, which, with the exception of Hidropark, runs the island's waterparks as well as Marineland.

There are other reasons why AMAT has wanted to have a word with the president: the small number of hotels open in winter and the reduced number of flights; the rise in IVA (VAT) from September; and promotion towards a youth market, as opposed to a family market, which has lower spending power and is interested only in night-time entertainment.

This last aspect is curious. Firstly, because Mallorca is still considered to be and is promoted as a family destination far more so than as a youth one. Secondly, because one of AMAT's members is Cursach. And what are their attractions? Well, Magalluf's BCM for a kick off.

AMAT's meeting with President Bauzá and the resultant attention in the media comes close on the heels of the announcement by the travel agencies' association, AVIBA, that sales of excursions are down. The two are not coincidental, as both associations represent parts of the tourism industry which are none too impressed by the government's new tourism law or by the IVA increase.

But as I pointed out in a recent article about AVIBA, its travel agencies are only part of the attractions' sales distribution channel, while the main reasons why the sale of excursions is down are very simple - lower tourist spend and economic crisis. The complaints that AMAT has, except the strange one about the weather and the curious one to do with youth promotion, are not unreasonable, but they ignore the underlying reasons why some attractions, in particular the evening ones, are finding that the going has got tough.

One should, though, have sympathy for the attractions. Most of them are open all year and so provide a basis for off-season tourism. An attraction such as the Aquarium can't just shut down in winter. Its sharks, fish, turtles are on fixed, annual contracts; they are not temporary workers that can be laid off when winter comes. Rancho Grande has its resident horses and other animals, the Sóller train chugs away, Costa Nord and La Granja don't shift themselves to different locations in winter. They all require investment and cost, some of it enormous. They cannot get away with being closed in winter, unlike many of the hotel chains. And if the regional government doesn't appreciate this, then it should do. Who owns Costa Nord?

And where IVA is concerned, though the reduced rate that applies to the tourist sector will go up by two points to 10%, categories of business that have benefited from the lower rate have been changed. Consequently, clubs, such as BCM, as well as theatre and other "spectaculars" will be liable to the new higher rate of 21%. If the evening excursion hadn't already been affected (which it has been), it now definitely will be.

AMAT making its voice heard is a good thing, but it has been stung into making its voice heard because so many factors are conspiring against some of its members. It should have shouted a lot more loudly a lot earlier.


Any comments to andrew@thealcudiaguide.com please.