Tourist spending in Mallorca has increased in 2025 despite a slight drop in visitors from key markets such as Germany. Industry sources report that average tourist expenditure in July reached €1,403.9 in Mallorca, up 1% from the previous year, with daily spending rising nearly 10% to €225. The Balearic Islands recorded a total of €12.97 billion in spending through July, a 4.7% increase year-on-year, according to the Balearic Institute of Statistics (Ibestat).
While the volume of visitors is stabilizing after a post-pandemic surge, the tourism sector is seeing a shift toward higher-value travel. “There are no signs of anything happening in the source markets. The decline is residual, not significant,” said Pedro Marín, President of the Playa de Palma Hotel Association. Marín noted that July occupancy stood at 89%, four points below 2023, but added, “We can’t complain at all.”
Sector Adapts to Lower Volume, Higher Value
Executives in the hospitality sector acknowledge that fewer tourists can be beneficial, provided spending per guest remains high. “It’s good that not as many people are coming,” said a hotel chain executive. “They prefer to be at 85% capacity and make more profit.” The average spending increase is seen as a positive sign, with fewer but more valuable visitors contributing to steady revenue.
Other markets are compensating for the drop in German tourists, with increased arrivals from France, Poland, the Czech Republic, and a stable American segment. “Tourism activity on the island is beginning to stabilize with more moderate growth,” an industry expert said. Meanwhile, some boutique hotels in Palma report a 10% drop in stays, although this is considered a localized effect rather than a broader trend.
Restaurant Revenues Decline Amid Half-Board Uptake
While hotels continue to report strong performance, the restaurant sector is seeing a downturn. Credit and debit card data from Segittur show a 15% drop in restaurant spending across the Balearic Islands in July, with textiles and other retail categories also falling. “Restaurant sales are down everywhere, not just here,” said Juan Miguel Ferrer, President of Restauración CAEB Mallorca. He cited a 30% drop in August restaurant revenue and attributed the decline to “a downward correction coming from exceptional years.”
Some hoteliers point to the increasing popularity of half-board accommodation as a factor. “It seems they’re blaming us. When reaching 60% half-board, it’s a success,” Marín added. The shift in guest behavior suggests a reallocation of spending rather than an overall drop in economic activity.
Long-Term Outlook Remains Positive
Despite concerns about price sustainability, local hotel associations remain optimistic. “Since the pandemic, we’ve been growing every year,” said Marín, who expects 2025 to be another strong year. However, some warn that pricing may have reached its limit. “We’ve reached our ceiling on prices,” said Christoph Gräwert of the Samos Hotel in Magaluf. “This isn’t sustainable.”
Others agree the market is normalizing. “All markets have fallen, but prices have risen, and we continue to focus on quality,” said Mauricio Carballeda, President of the Palmanova-Magaluf hoteliers. The emphasis is shifting toward attracting guests who spend more and expect higher standards, a change many believe will support the island’s long-term competitiveness.
Overnight stays in July fell 7.25% in Mallorca and 14% in Ibiza, with cumulative stays down 1.15% across the Balearics through July, totaling over 64 million. Still, tourism professionals remain focused on profitability and quality. “We’re comparing ourselves to the best year in history, 2024,” said Pablo Riera-Marsá, President of the Alcúdia and Can Picafort hoteliers. “Profitability is adjusting, and prices don’t have to rise in aeternum.”
