- 70 per cent of guests are adult couples and families – an increase of 13.23 per cent when compared to 2013
- The young traveller demographic represents just 22 per cent – a decrease of 7 per cent when compared to 2013
- An extension in the season saw a growth of visitor numbers of more than 66,000 in October, with almost 60 per cent of hotels remaining open
In November 2015, the Palmanove-Magaluf Hotel Association, Calvia Town Hall and Meliá Hotels International pledged to transform the area of Magaluf through a collaborative five-year regeneration plan. Two years later, the destination is making headway in achieving its five key objectives as the Palmanove-Magaluf Hotel Association reveals its summer season results and a summary of how investment in the area is starting to have an impact.
Magaluf five-year regeneration plan objectives
- Extend the season to nine months (March to November)
- Attract more families and adult travellers to the destination
- Enhance diversification, focusing on the MICE and sports travel segments as a complement to leisure travel
- Modernise and increase the quality of complementary facilities (shopping centres, restaurants, beach clubs and other leisure facilities)
- Improve security, public order and the reputation of the destination
High summer occupancy and transformation in customer segmentation
The quality of hotels in Magaluf has continued to improve, with 60 per cent ranked as four or five-star properties and a total of 30,000 beds now available in total in the destination. Average per room, per night prices have also increased in line with the investment in hotel facilities to ensure a high-quality product. Total overnight stays increased by 4.4 per cent to almost 5.5 million in 2017, compared to 2016. The increase in stays can also be attributed in part to the opening of Magaluf’s first five-star property, VIVA Zafiro hotel, and the renovations of Meliá Calvia Beach and Sol Beach House Mallorca.
The transformation of Magaluf is particularly apparent when looking at the shift in customer segmentation. This demonstrates a change in the area’s tourism model, affected by investment in high quality facilities and customer safety making Magaluf attractive as a family holiday destination. Family and adult couples have continued to dominate the customer segment, representing 70 per cent of guest numbers – an increase of 13.23 per cent compared to 2013. Young people, associated with Magaluf’s nightlife culture, now only represent 22 per cent of the area’s overall visitors – a decrease of 7 per cent when compared to figures seen in 2013.
The UK has maintained its position as the primary tourist market, representing 22 percent of all travellers to Mallorca, (48 per cent of Palmanove & Magaluf’s), and is followed closely by the Spanish and Scandinavians, with other European markets representing 33 per cent of all visitors. Total numbers of British tourists increased by 1 per cent compared to 2016, totalling167,316 hotel stays, in spite of Brexit.
Extension of the season and higher employment levels
Extending Magaluf’s season to a nine-month period, March to November, is one of the key objectives in the destination’s five-year plan. End of season results shows that hotel occupancy between June and September was consistent with the previous year, peaking at 91 per cent in August, and reaching 86 per cent in June, 88 per cent in July and 87 per cent in September. However, October saw growth of more than 3 per cent, with almost 60 per cent of hotels remaining open at the end of the season.
Due to the extension of the season and investment in high-quality facilities, employment rates in the tourism industry have also increased by 6 per cent in June and 16 per cent in October compared to 2016. Since 2015, the growth in employment has risen by between 16 per cent and 33 per cent.
Within its portfolio in Magaluf, Meliá Hotels International has opened nearly 2,000m2 of meeting and congress space which has supported the extension of the season, as well as attracting more affluent clientele and business people to the destination.
A safer destination
Increased security, public order and the overall reputation of the area remains a priority. In 2016, The Palmanove-Magaluf Hotel Association, Calvia Town Hall and the Balearic Islands Civil Guard introduced a zero tolerance policy towards anti-social behaviour and crime, which signalled a turning point for the resort. The regulations prohibited drinking alcohol in the streets and imposed minimum dress requirements in public spaces.
This year, the partnership between local government and the police force has continued to increase controls and the enforcement of regulations in Magaluf, with an upweight in street night patrols on Punta Ballena during the high season.
Figures for crime, drunkenness and other public order issues remain in clear descent. Hotels also implemented a zero tolerance policy, the number of guests expelled from hotels for bad behaviour in 2017 was 156, 20 per cent less than the previous year and alcohol-related incidents, such as balcony jumping, decreased by 82 per cent in 2017, compared to 2015.
New regulations were also put in place to prohibit the display of alcohol on store terraces visible from the street. Statistics show a 20 per cent decrease in robberies and aggressions were reported in 2017, compared to the 2016 season, as well as a 5.32 per cent decrease in crime in hotels in Magaluf.
Meliá Hotels International is a key player in the regeneration of Magaluf
Working in partnership with the local government and hotel Association of Palmanove-Magaluf, Meliá Hotels International has invested a total of over €200 million in the refurbishment of its properties in the area to support the wider regeneration of Magaluf.
This year Palmanova-Magaluf has continued to promote higher quality complementary facilities to attract more affluent visitors to the destination. In Summer 2018, Meliá Hotels International will launch a new state-of-the-art shopping mall, offering underground car parking space in the centre of Magaluf, as well as introducing a new hotel – Sol House Calvia Beach – overlooking the beachfront, replacing the previously demolished Jamaica Hotel.
Meliá Hotels International has made the largest private investment of €45 million and the launch will mark the next phase in the repositioning of the destination, offering 5000m2 of retail, food and beverage outlets and terraces to further enhance the profitability of the Magaluf tourism industry.
Transport and sports facilities
Local authorities have continued to improve transport to the destination and sports facilities, with plans to invest €3 million in 2017-18 in urban improvements, including restructuring and improving Galeón Street, Paris Street at the crossing with Hermanos Pinzón Street, and Martin Ros Garcia Street, as well as enhancing the sports infrastructure such as the Magaluf athletics track.
Challenges for future years
Sebastián Darder, President, Hotel Association, said: “The destination aims to continue consolidating new quality product and the new customer segmentation, which has allowed us to increase occupancy, profitability, and the social and economic sustainability of Magaluf, as well as continuing to improve the reputation of the destination among adult travellers and families.
“The destination continues to improve year after year, and in 2017 we are presenting a summary similar to that of the excellent year in 2016, although with a greater number of overnight stays, longer hotel opening periods, and a larger number of jobs created. And, in spite of the relatively frequent news about events in Punta Ballena, a very specific street within the destination, we are also very satisfied to report that the figures for crime, drunkenness and other public order issues remain in clear descent.”
The President of the Hotel Association also expressed his confidence that the local authorities will implement plans for improving the urban environment, in line with the Calvia 2030 Strategic Plan presented in summer 2017, and that the police force will maintain its zero tolerance approach to crime and bad behaviour to further improve the safety and comfort of visitors.
Andreu Serra, Deputy Mayor of Calvia and Head of Security, said: “In Magaluf we have implemented a zero tolerance policy towards antisocial behaviour and crime, and the result is very clear. Today we have a safer destination which is more family friendly, in spite of the increase in the number of tourists.”
In recent years Mallorca has invested more than €1,150 million to improve and reposition hotels and the destinations of Palmanova and Magaluf. The investment has been led by Spanish hotel group, Meliá Hotels International, with support from other hotel companies such as Fergus Hotels, Zafiro Hotels, Saint Michel Hotels, BH Hotels, Aluasun Hotels, Ola Hotels, HM Hotels, Senses Hotels, Cabau Hotels, Piñero Hotels, Ibersol, Seramar Hotels and THR, as well as a large majority of independent hotels.