Tourism authorities in Spain are expressing worry about a decline in the hospitality sector, particularly in the Balearic Islands, which have had a challenging start to the year. The islands, including popular destinations like Majorca, Ibiza, and Menorca, experienced an 8.83% drop in international visitors in January. Additionally, restaurants across the islands recorded a decrease in foot traffic throughout 2025.
The overall restaurant footfall in the Balearic Islands saw a 3% reduction in 2025. Despite seeming relatively small, these decreases can significantly impact the industry due to narrow profit margins and the islands’ heavy dependence on tourism.
The decrease in restaurant customers is partially attributed to escalating prices across the islands, as reported by the Majorca Daily News. Data analysts noted that areas with more affordable dining options, such as Castile-La Mancha and Extremadura, saw an increase in customer numbers.
The president of the CAEB Restaurants Association, Juanmi Ferrer, expressed concern about the industry’s outlook for 2026. He described the beginning of the year as “disastrous” and predicted a challenging year ahead. Ferrer emphasized the reluctance of restaurant owners to raise prices, as it could deter customers, and outlined plans to mitigate the impact of inflation.
To address the situation, there are discussions about implementing a restaurant voucher program similar to a recent initiative supporting local shops. During the summer of 2025, concerns arose about certain Majorcan resorts becoming less vibrant, leading to protests against overtourism.
Although there has been a decline in visitor numbers, particularly among British tourists, industry experts suggest that this trend could be due to travelers adjusting their holiday schedules to take advantage of lower rates in October and November. Despite these challenges, the Balearic Islands have seen record tourism figures in recent years post-Covid.
Efforts to combat overtourism continue, with plans to reduce the number of daily cruise ship berths in Palma, Majorca. The opposition party proposed capping visitor numbers across the islands, although this suggestion was not approved.
