Spain’s move to snub ‘budget’ British tourists in search for ‘upmarket’ holidaymakers is causing misery for residents in Mallorca and Ibiza who are now forced to live in vans because they can no longer afford soaring rental prices.
Locals from the Balearic islands said they had been left wondering how they would ‘survive’ and afford to rent or buy properties amid increasing prices that have been driven by a shift towards upscale tourists who can afford more expensive properties.
‘People are now looking at how to survive,’ Rona Pineda, 32, who shares a two-bedroom apartment with a couple in Mallorca, told Bloomberg. ‘If you have a normal salary, it’s very difficult to find a place to live nowadays.’
The comments came after the director of tourism for Mallorca, Lucia Escribano, declared her industry chiefs ‘are not interested in having budget tourists from the UK’ – as the island attempts to rebrand itself from a destination for cheap drinks and beach parties by limiting the number of UK tourists.
This move away from ‘budget’ British tourists and toward ‘upmarket’ visitors from the likes of France, Italy and the Netherlands has meant that rental costs and housing prices have ‘skyrocketed’.
Spain’s move to snub ‘budget’ British tourists in search for ‘upmarket’ holidaymakers is causing misery for locals in Mallorca and Ibiza who are now forced to live in vans because they can no longer afford soaring rental prices. Pictured: Tourists sunbathe at Magaluf Beach in Calvia, on the Balearic Island of Mallorca, 2021 (file photo)
Therefore, for some locals in Mallorca and Ibiza the situation has become so desperate that they have been forced to live in camper vans as they cannot afford to live in apartments or houses.
‘More and more people are moving into campers,’ said Matias Vidal, director of the real estate agency Inmovisa in Mallorca. ‘It’s still a minority but an increasing trend that we didn’t see some years ago.’
Vidal, who has been selling properties in Mallorca for decades, added: ‘Foreigners have more money available usually and they don’t look so carefully for bargains so that makes prices skyrocket.’
According to Bloomberg, citing market figures, 36 per cent of properties sold on Mallorca and its neighbouring islands in the fourth quarter of 2022 were purchased by people from outside Spain.
The uptick in external demand has pushed house prices in the Balearic Islands to the highest among all of Spain’s regions, including the capital, Madrid.
In Madrid, however, workers are paid around 30 per cent more than the islanders.
The neighbouring islands of Mallorca and Ibiza are also trying to change their party-destination image. Mallorca has added ten five star hotels since 2018. Ibiza has doubled its own number of high-end resorts since 2016.
In doing so, however, the islands have increased the number of staff living and working on the island, who then also need housing. Improving the quality of service means restaurants and bars need to increase staff numbers to keep pace.
This drives demand for housing further, making it even more difficult for locals.
Meanwhile, as Spanish industry chiefs look for other sources of tourism, European tourism destinations are queuing up to rake in some extra British pounds.
Earlier this month, tourist chiefs in Lanzarote – one of Spain’s Canary Islands, and among Britain’s favourite package holiday destinations – announced they were fed up with UK tourists and would make a concerted effort to attract more visitors from France, Italy and the Netherlands instead.
Elsewhere, ‘nuisance’ British tourists have been warned to ‘stay away’ from Amsterdam if they’re only going there for ‘drugs and alcohol’ in a new ‘discouragement campaign’ being targeted at the tourism sector.
Amsterdam’s deputy mayor Sofyan Mbarki defended the new message, saying: ‘The aim of the discouragement campaign is to keep out visitors we do not want. If we love the city, we must take action now.’
Fortunately, the value of British tourists is clearly not lost on other European nations, whose industry chiefs are welcoming visitors from across the Channel.
The director of tourism for Mallorca, Lucia Escribano, said her industry chiefs were ‘not interested in having budget tourists from the UK’ – as the island attempts to rebrand itself from a destination for cheap drinks and beach parties by limiting the number of British visitors. Pictured: Tourists are seen on El Arenal beach in the island of Mallorca in 2018 (file photo)
France’s national tourism development agency said in a recent statement that the British market ‘is always a priority and we must work tirelessly to reinvigorate the flow of tourists towards France’.
Portugal has decided to dismiss EU laws that prevent UK visitors from using e-passport gates due to Brexit to speed up airport waiting times and facilitate the arrival of British holidaymakers.
Other European travel hotspots are keen to keep the Brits coming, too.
At the World Travel Market 2022 expo in November, Greek Tourism Minister Vassilis Kikilias said more than 3million British travellers had visited that year and declared the country was keen to continue bringing more tourists in.
Turkish tourism bosses have also been frank about their desire to boost the number of incoming Brits – having enjoyed record numbers of visitors from the UK in 2022.
Some in Spain are also concerned about the potential loss of British tourism due to a ‘tourist tax’ which is set to come into force later this year.
Mesa de Turismo, a non-profit group representing Spain’s tourism industry, says it could pose a major problem for the country if the EU presses ahead with the charge, which would see non-EU visitors forced to pay seven euros (£6.20).
The rate, called the European Travel Information and Authorisation System (ETIAS), will be applied to those visiting the Schengen Area from November.
Describing the tax as a ‘threat’, Mesa de Turismo said it risked undermining Spain’s tourism sector.
The ETIAS will apply to visitors from visitors from 63 countries – including Britain – outside the European Union. It was first confirmed by the EU in August 2021.
Spain’s tourism leaders warned last week they could lose millions of British holidaymakers if the European Union introduces a new tourist tax later this year
The scheme will be similar to the US’s Electronic System for Travel Authorization (ESTA) system – which allows citizens from 40 countries a 90-day visa-free stay.
Like the US system, the ETIAS will allow people visa-free entry for up to 90 days, during which visitors are not allowed to work or study, but can ‘engage in business and tourism activities,’ according to the Schengen visa info website.
The EU’s version will be valid for up to three years – and will count for multiple entries. Those under 18 and over 70 will be exempt from the fee.
The website states visitors ‘can enter the Schengen member states as many times as you want, for as long as your ETIAS is valid, and you have not stayed more than 90 days in a 180-day period.’
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