CRISIS-HIT hotels in Mallorca are closing their doors next month after registering more cancellations than stays in July.
The Association of Hotel Chains (ACH) say the number of holidaymakers who have decided to cancel their room bookings far outweighs those going forward with their stay this month.
According to the ACH, the average occupancy rate in July is between 30% and 45%, far below the usual monthly figures.
They attribute the cancellations to a policy implemented in the majority of hotels which allows tourists to postpone or cancel their trip at any time without cost.
The ACH also believe there is much uncertainty around travelling to Spain, largely linked to multiple outbreaks of coronavirus across the country.
Last week, the Balearics itself registered 13 active outbreaks, putting more than 100 people in isolation.
Add into this the order to wear face masks at almost all times which has put a vast majority of holidaymakers off visiting the Balearic Islands.
“German, Austrian and Swiss, French and Italian tourists are the most affected by this uncertainty,” said the ACH.
“There is not only a general level of fear, but the tightening of sanitary control measures has not helped the situation.”
The association say this has led to hoteliers being ‘completely paralysed’ with a proportion making the decision to close next month due to a steep drop in demand.
“Hoteliers are concerned about remaining open without any clients which would be a very serious economic risk,” added the ACH.
Adding more economic strain, the ACH explain that hotel owners are still waiting for German and British tour operators to pay for cancelled bookings during the nationwide lockdown.
“These groups have said they will delay payments indefinitely and so far, they have not paid a single euro for operations carried out until mid-March.”