Barceló Adding To Tourism Industry Uncertainty

The storm clouds are gathering for Biel Barceló. The Més contracts affair, it needs stressing, is not in any way - allegedly or otherwise - on a scale of what once used to go on at the tourism ministry, but it nevertheless induces some uncertainty at the ministry at a time when it needs it the least.

In the bad old days of Unió Mallorquina control of the ministry, which lasted for much of the 2007-2011 administration until the party was kicked out of the ruling government pact, things got to such a pretty pass that the tourism industry barely knew from one day to the next who it was dealing with. Three ministers came and went until eventually PSOE took over and installed Joana Barceló for the final year or so of the administration. Along with the ministers, out also went various officials who were under suspicion.

The industry is used to the ministry's chopping and changing. It happens every four years. This turnaround can be dealt with because it's predictable. It's when things become unpredictable that the industry gets the jitters. And with the UM there was the specific issue of Mallorca and the Balearics being given a thoroughly bad name because of corruption. While the industry can carry on and does so regardless of politicians and political shenanigans, it - as with any other industry - prefers a state of calm and as much certainty as possible. Right now, there is too much uncertainty as it is, e.g. Brexit and any Catalonia effect, and heading towards the first major travel fair of the winter period - London's World Travel Market in November - there is the additional headache of the Més contracts.

Barceló can probably ride out the storm, despite calls for his head. President Armengol expressed her confidence in him earlier this week, which was probably more sincere than a football club chairman's vote of confidence in his manager, but there's no disguising the fact that his neck is potentially on the line. It also needs stressing that he personally hasn't been mentioned by the anti-corruption prosecution service, but the citing of the director of the Balearic Tourism Agency (Pere Muñoz) is too close to him for comfort. It starts to sound a bit like the UM revisited, and it starts to make Barceló appear like damaged goods.

The nub of the prosecutor's case against Muñoz is that a contract with a total value of 80,000 euros was split in such a way as to circumvent normal procedures for the awarding of a contract with that amount. There were two contracts for what was to have been a tourist survey. The argument presented by the ministry is that there was nothing untoward in this as the first contract (for a lower amount to Jaume Garau, the one-time Més campaign manager) was for the specification of the survey. The other contract was for the implementation, i.e. the conducting of the survey and its analysis. This was to a Madrid-based company. However, it is alleged that Garau exerted influence over Muñoz in order to ensure that this company got the contract, for which there was no public tender.

A peculiar aspect of this affair is that despite Muñoz having resigned, he hasn't actually gone. Apparently this is to be confirmed at a meeting of the tourism agency in London. Why? This makes no sense. Is Muñoz actually going to be in London? Whether he is or he isn't, Barceló needed to have distanced himself pronto and not let the matter drag on. As it is, the contracts case is hovering over him when he needs to be doing all he can to allay industry anxieties about a host of issues, only one of which is the doubling of the tourist tax, about which there is still a lack of clarity as to its application in the low season.

Mallorca Goes To Madrid

Fitur, the Madrid international tourism fair, starts on Wednesday next week. Along with London and Berlin, it is one of the three main fairs for Mallorca and Balearics promotion. Despite the international of the title and unlike the other two fairs, it is more of a domestic event for Mallorca. It shouldn't be forgotten, though, that the domestic market ranks number three behind the UK and Germany in terms of island tourist volume. It's an important occasion.

Much to the disgust of Podemos, who have wanted the tourism promotional budget to be slashed to one-sixth of its already meagre funding, the Balearics will unveil a new stand and a new message: "Better in Winter". As the representatives set off for Madrid, let's hope there is no need for snow to be swept off the runway in Palma (the forecast suggests that there may well be snow at sea level next week). Better in winter; it can rather depend.

We all know, of course, why this slogan has been adopted. We will find out whether the current desire to press for increased winter tourism works or if it is just another vain attempt largely designed to try and prove to a sceptical public that the tourism ministry knows what it is doing and is indeed genuinely committed to winter expansion. There are those who would prefer that the ministry failed. What was it that Laura Camargo of Podemos said about workers not having to work all year round? Seasonality, if it means that workers can relax for several months and that there aren't ever more tourists, is a good thing where certain politicians and political ideologies are concerned.

While the ministry, or to be specific the Balearic Tourism Agency (ATB), is telling the Spanish traveller that things are better in winter, the Council of Mallorca, which has still yet to be formally handed tourism promotion responsibilities, is making a pre-emptive promotional strike. Long-time observers of the island's promotion will feel that this has long been something of a comedy. The Council seems inclined to agree. It's using the comic device to promote Mallorca.

Actually, that's unkind. The initiative is different. It's rather charming. It makes one wonder why such a touch of innovation has proved to be beyond the ATB. But while the Council, similar to the government in this regard, wishes to promote cultural, sport and nature tourism, the images don't all seem to tally with this. There is still a hint of that old stand-by, sun and beach. Better in summer. There again, an image of three people in a small boat steering themselves across a turquoise sea to an unspoiled beach with velvety white sand backed by dunes is indicative of ... . Indicative of what precisely? Nature? Presumably. It looks more like an idyllic summertime promotion for the seeker after beach and sun. Moreover, it is an unspoiled beach of the type that the "saturationist" lobby maintains is being overrun and environmentally damaged. Still, at least the boat is environmentally correct: it doesn't have an engine.

Meanwhile, the comic map of Mallorca does highlight the culture, sport and tourism. There are religious buildings, a windmill, lighthouses, castles, Moors v. Christians (the Santa Ponsa version). There are people kayaking, cycling and hang-gliding. There are flowers and palm trees (unaffected by the red beetle), while Mallorca is uniformly green except for splashes of lighter green. One wishes the Council well. It's not a bad idea at all - winter or summer.

Arguing Over Little: Tourism Promotion

The regional government, in other words PSOE and Més, has fought off the budgetary challenge of Podemos and will stick to its spending for tourism promotion in 2017 - all of 3.6 million euros. Podemos had wanted the bulk of this budget (three million) to be devoted to the innovation and research part of Biel Barceló's ministry. The government parties were having none of this. Toni Reus of Més, a former mayor of Santa Margalida, said that the spending was targeted at precisely the objectives that Podemos had accepted in drawing up the agreement for government with PSOE and Més - such as cultural and gastronomy tourism and tackling tourism seasonality. Damià Borràs of PSOE told Podemos that the promotion will assist in extending the tourism season and therefore workers' contracts.

While Més, some elements within it at any rate, may be characterised as being sympathetic to the tourist limits or tourist reduction camp, this was not what came across during the debate on the promotion budget. Laura Camargo of Podemos insisted that her party was the only one that was wishing to "put a brake" on the number of tourists. As for tackling seasonality, this will be like "pouring petrol on the fire", she argued. "We do not want more tourists in summer or in winter." She then went on to say that after eight months of work during the season, workers were exhausted. They shouldn't now have to be called on to work in the winter as well.

Of Camargo's remarks, one might observe that workers who have put in eight-month stints are the lucky ones, and while it is undeniable that many workers in the tourism industry work long hours, why should it be deemed acceptable that they should not work more than eight months? This is the conclusion one draws from what Camargo was saying, and it is a conclusion which reinforces the skewed basis of the Balearic economy: work for x number of months and put your feet up for y months of the year, hopefully with sufficient benefit to see you through. Does she not also appreciate that there are workers who disappear in winter and look for and find work where there is a winter season, e.g. the Canaries? Not all of them are exhausted.

Podemos wanted the money to go towards innovation and research because the party believes that this will assist in creating the much-spoken-about changed economic model, one that is more diversified, less reliant on tourism and spreads wealth more evenly. But PSOE and Més want the same thing. Any political party with a modicum of common sense would want this. The difference with Podemos, or so it seems, is that this change can be brought about by diminishing the main sector of the islands' economic activity, which is plainly wrongheaded. The more that tourism is buoyant, the more it generates wealth and revenue for the government. Not all of this wealth is ploughed back or shared through decent salaries with the general workforce - that is a rightful beef - but much of it is and so can, with the right political and financial management, be targeted at diversification.

The announcement of a new Balearic stand for travel fairs will doubtless therefore have caused convulsions within Podemos. The promotional spend, such as it is, goes in great part towards travel fairs, and the new stand (its design at any rate) was revealed earlier this week. Its maiden appearance will be at Madrid's Fitur fair in January.

The Balearic Tourism Agency describes this as conveying a "fresher and more Mediterranean" image, and the message it will be helping to get across will be one aimed at tackling both seasonality and summer season "saturation". The slogan will be "best in winter", with emphasis being placed - you won't be surprised to learn - on gastronomy, culture and heritage. 

What Does The Tourism Promotion Agency Do?

The Balearic Tourism Agency (ATB) is the government agency which markets the Balearics as a tourist destination. Its budget for next year is being cut to 19.5 million euros. Based on recent experience, less than 20% will go on direct promotion, which doesn't mean advertising but does mean travel fairs and other such actions. London's World Travel Market, which starts on Monday, is one of the main items of expenditure. We may well be informed how much is being spent on this annual trip, but if we want to find out from the agency's action plan for 2016, we will be disappointed.

I keep archives of these plans. I went looking for 2016's and couldn't find it. On the agency's website, there is a link to a plan, but it isn't this year's; it's the one for 2015. Perhaps they didn't bother making a plan; so much for transparency. Maybe this had something to do with the revolving door at the agency, which saw the departure of the director who was initially appointed by Biel Barceló (it was said he got a better offer) replaced by an old friend of Barceló's, Pere Muñoz. Who can say?

One has to rely, therefore, on the 2015 plan for information. That showed that the London fair was the third costliest event. The quarter of a million budget was exceeded slightly by the budget for Berlin's ITB and greatly exceeded (by 129,000 euros) by the spend on Madrid's Fitur. Who were they wanting to promote to more? The British, the German or the Spanish market? The latter, it would seem: always well behind the UK and Germany in terms of tourist numbers. 

The total cost of the various fairs and other exercises, such as press trips, was approximately 3.7 million euros. So what exactly was the agency doing - or planning on doing - with the rest of its budget (other than paying staff and advisers)? Well, there were, for example 4.9 million euros set aside for "territory actions", which meant investment in infrastructure. Of these - and there were thirteen of them - there was at least one that wasn't carried out. The second highest budgeted amount (837,000 euros) was for phase B of the boulevard in Playa de Muro. I'm unaware of there having been a phase A let alone B. What happened to the money for that then?

Going back to the budget for travel fairs and other actions, the 2015 plan stated that the market for 66 of them was yet to be determined. In other words, the plan didn't specify in which country 43% of these actions were to be undertaken. A footnote says that these would be determined once requests had been received from Spain's overseas tourism offices. Were they all, in the end, undertaken?

There is a question, therefore, about previous budgets. Was the money used for other purposes, or has it been held over? If there were other purposes, what were they? Is the reduction in the budget for 2017 a reflection of money in reserve? Some explanation would be welcome.

The Problems With Mallorca's Senior Officials

They get themselves into a right old tangle in Mallorca with their "altos cargos" - senior officials appointed through a political process. These officials can be, variously and as examples, director-generals of departments within regional government ministries, directors of companies that are owned by government authorities or directors of foundations that have as their trustees and governing bodies representation from political parties.

During the period of the current administration - since late June last year, therefore - controversy surrounding senior officials has rarely been far away. The greatest controversy concerned the appointment of Juli Fuster. He is the director-general of the IB-Salut health service. His wife, it just so happens, is the health minister. The Fuster affair has now been put to bed, but other appointments keep surfacing and keep causing problems.

Early in February, the selection committee for the Pilar and Joan Miró Foundation approved the appointment of Francisco Copado as the foundation's new director. The selection committee has its experts in such matters. It also has its political representatives. The trustees and governing committee for the foundation have as their president the mayor of Palma. The vice-president is Palma's councillor for culture. There are other town hall representatives, some from other parties, as well as members away from the town hall, such as the grandson of Joan Miró.

Ever since the appointment was made, questions have been asked about Copado's qualifications for the post. He himself was interviewed by the press and sought to downplay his absence of management experience of running a museum or similar. This is meant to be a requirement for the job. Copado has a relevant degree and masters and knowledge of the arts and cultural worlds and also several languages. It was seemingly the latter which swayed the selection committee in his favour, but the Partido Popular's Javier Bonet, a member of the governing committee, has questioned not just the appointment but also its legality. He has suggested it might be a case of "prevaricación", that difficult word in Spanish which, in legal terms, can be interpreted as, for instance, abuse of power in public office.

A special meeting of the trustees' board is to be held to consider the affair. One feels that Bonet is overstating things. He had earlier challenged the appointment by reminding the councillor for culture, Miquel Perelló, that he (Perelló) had told the media that none of the candidates for the advertised position met all its requirements. Rather than some political motives, it would seem that Copado was felt to have been the best available. As such, one has some sympathy for him, as he's hardly been out of the media glare since he was appointed.

This may have been a tricky appointment but at least it was one made via what seems to have been a normal recruitment process. The same cannot be said of the new director-general of the Balearic Tourism Agency (ATB). Copado isn't a political appointee (or doesn't appear to be). Pere Muñoz, however, is.

The ATB is the tourism ministry's marketing and promotion department. Last September, Miquel Àngel Roig was made director-general of the agency. He resigned last month, having spent roughly the same length of time in his post as the now former director of the Palacio de Congresos company had. (That company is run by the regional government and the town hall.) Both departed citing personal reasons. Josep Sintes has since gone on record in identifying major disagreements he had with the Palacio board, especially its president, the town hall's tourism councillor, Joana Maria Adrover. Roig has said nothing. Apparently he was made a good offer to return to Hotelbeds, for whom he had worked before being appointed ATB director-general.

Roig was, therefore, someone with a tourism background. Muñoz's background, on the other hand, is more questionable in this regard. One particularly disparaging review of his experience suggests that it is limited to having managed the accommodation and car park at Lluc Monastery. He is currently disentangling his business interests in order to take up the appointment, and one of these interests is with a Catalonian company involved in tourism operations. But crucially, he is an old associate of Biel Barceló, the tourism minister. They were in fact at one point rivals within the PSM (Mallorcan socialists). He hasn't had frontline political experience for some years but he has now returned to the frontline, because his appointment is political.

It is said that Barceló had considered him for the position before appointing Roig but decided not to because of the fuss with other political appointments. Now, though, Barceló seems to believe it's safe to appoint him. Sources other than Barceló in Més and close to the government are understood not to have much faith in Muñoz. One fancies that there may be another parliamentary row over a senior official appointment brewing.