An Obsolete Law: Hotel conversion

The new tourism law, widely being referred to as the “hotels’ law” because it is said to concentrate almost exclusively on hotels’ needs, might not be quite as accommodating as the hotels had hoped. They might, for example, not have been expecting to have pay for conversion of obsolete hotel stock over and above what they will pay for the work to be carried out. But the new law has a catch. Two in fact.

The catches apply to hotel buildings that would be converted into apartments for sale. One is that not all the building can be converted for this purpose; 10% would have to be set aside for other purposes, such as shops or restaurants. The other is that a 5% tax will have to be paid on the value of the building, money that would find its way into upgrading the tourist area in which it is located.

Designating a part of the building for other purposes is in line with what happens with the construction of apartment blocks. But it is a regulation that has not been without its critics. It reduces the return on investment on building or conversion and it simply adds to a stock of units that are hard enough to fill as it is. Paying a tax might seem reasonable enough, but whether it would really be allocated for local modernisation, who’s to say.

The obsolete stock that the law has in mind covers two types of current accommodation, one of them being rather vague as it applies to old hotels in “mature tourist areas”, the other being one and two-star/key hotels and apartments. As far as the latter are concerned, there are various possibilities, but they are all aimed at elimination. They can be converted to residential use, upgraded to a minimum of four-star rating or be closed down.

An issue with all of this is just how many hotels might be affected. A further issue is whether conversion to residential use is in fact viable, either because of the cost to the hotel or to a potential market which is in the doldrums as it is.

Hotels, you might think, aren’t short of a bob or two. Many aren’t, but, and as I reported on 12 July this year (“For Sale: Hotel, Needs Work”), there are plenty of hotels that owners would gladly see the back of, if they could sell them, and plenty of hotels for which the cost of conversion would be prohibitive. The solution would be to sell the hotels to developers, but in the current market climate, how likely would this be?

One doesn’t know the number of “obsolete” hotels, but were it to be a significant number and were they actually to be converted and not simply abandoned (thus creating eyesores), to what extent would the overall number of hotel places fall, and especially in the “mature tourist areas”?

There is an argument that a reduction in the number of places would be no bad thing. Indeed the government wants to avoid an “over offer” of hotels, even if a decline in the number of places would be potentially bad PR for governments which love to be able to declare statistics of ever-growing numbers of tourists.

Let’s suppose, however, that these hotels were to be converted. What do potential owners of apartments that these buildings would comprise want from their investment? Not all of them would want to live in them. The alternative is that they want to make a return, and that means renting them out. You can probably see where this is going.

Potentially releasing a whole load of privately-owned apartments in tourist areas smacks of the government not thinking things through. Buyers could rent them out – for residential use. But not for tourism use. Not as holiday lets, because they wouldn’t be legal. Or would they?

The other type of conversion that hotels will be permitted to undertake is to provide condos. But they, too, are subject to market demand. Owners would at least be able to make a return through the apartments being also part of a hotel’s offer; indeed they would think it essential, as they would personally be limited to only two months use a year.

There are, therefore, a number of unknowns lurking in the provisions of the new law. It is a bold law in that it sets out an agenda for modernisation, but in issuing a tourism law that is a law for the hotels, the government needs to be sure that its objectives can be met. The closer you look at the law, the more the questions arise.

Any comments to andrew@thealcudiaguide.com please.

All In A Day’s Lack Of Work

On one day last week, three things happened which, while they may initially seem to be unrelated, aren’t. One was the closure of TV Mallorca, the second was an announcement by the government that financial support for various fairs would not be forthcoming, and the third was a protest by musicians.

TV Mallorca’s demise was inevitable. It was arguably unnecessary and superfluous given the existence of IB3, so the Partido Popular had targeted it for the chop, and chopped it has now been.

But TV Mallorca went beyond being just another broadcaster. It was a source of contracts, employment and encouragement for those in the audiovisual industry, one of the very few areas of activity in Mallorca that has had anything like some sort of growth recently.

At the same time as Microsoft and the local audiovisual industry are demonstrating that they can be innovative in coming up with solutions for other parts of the economy, i.e. tourism, it seems somewhat perverse to be undermining this very industry. The government will argue, of course, that it is the private sector, in the form of Microsoft or whoever, which should be the impulse behind innovation and growth, but it does also require governments to stimulate industry. Quite how Josep Aguiló, minister for both finance and business, squares the competing demands is unclear. Or rather, it is clear enough. Finance, or lack of it, wins.

The government’s spokesperson, Rafael Bosch, has hinted that the government has a cunning plan for investment in the audiovisual industry, so those at TV Mallorca who now find themselves on the dole plus the production companies that have lost business can presumably breathe a sigh of relief. Unfortunately, what this cunning plan is, is also unclear.

Within Aguiló’s wide remit is responsibility for fairs and congresses. The body which oversees these has made it clear that events have to be self-financing and that the government is not prepared to lose money on them. Among the fairs is the Palma Boat Show, scheduled to take place from 28 April to 6 May next year. The chances are that it won’t.

The viability of the boat show is open to further question, the government suggests, because the boat show in Barcelona hasn’t, in its words, “worked”. It’s taken a long time to figure this out, if it is the case. 50 years to be precise.

It may be legitimate to question the benefits of the boat show in direct economic terms, but in a wider sense, that of the kudos that comes from a show and its contribution to the reputation of Mallorca’s nautical industry and nautical tourism, one has to wonder whether the government’s attitude isn’t somewhat short-sighted.

Then there are the musicians. Eleven music associations and groups, some of them familiar names at fiesta times and on other occasions, have lobbied the Council of Mallorca over cuts to financial assistance. The Council’s now administration has said that the cuts are all the fault of the previous administration and that it will bring back the funding for traditional Mallorcan music performers in 2012 without, however, being specific. Given the parlous state of the Council’s finances, it is probably wise not to commit to anything.

With the musicians, it is a case not of jobs but of the contribution to local culture which, by extension, means or should mean tourism. It is rather more nebulous than the audiovisual and nautical industries, but an economic case for the musicians can just about be made. As part of the, if you like, “fiesta industry”, which faces even more cuts next year, there is a concern that an erosion of the fiestas may just have a negative impact on tourism.

There is financial support for the musicians from non-governmental sources, as there is finance and sponsorship available for fairs, plus the private sector to fund the audiovisual industry, but this funding isn’t infinite. Understandable it is that the government is seeking cuts where cuts can be made, but it runs a risk of abrogating responsibilities for industries it would wish to develop and for culture it should be supporting.

There again, maybe this is all just a case of realism finally taking hold, a recognition that money, for all sorts of things, was handed out almost willy-nilly without questions being asked as to whether it was wise or not and without any real control. Possibly so. But on one day last week, you had the impression of the seemingly diverse but ultimately interdependent industry and culture of Mallorca, which in turn feed into tourism, just grinding to a halt. Cuts yes, but you can only cut so deep before the bleeding becomes terminal.

Any comments to andrew@thealcudiaguide.com please.

The Great (Tourism) Reform Act

The new tourism law is still only in draft form. On Monday it was put out for “public exhibition”. What this means in practice is that sectors of the tourism industry can scrutinise it in order to ensure that their interests are being catered for. In theory, anyone can suggest modification, but it will fall only to the loudest and strongest to be heard or to effect amendment. And guess who they are.

Pedro Iriondo, the president of the Mallorca Tourist Board (Fomento del Turismo), while generally applauding the draft law, has also offered some criticism. “Everything is focused on resolving problems of the hotel sector,” he has said. But why should he or anyone be surprised by this?

Iriondo has gone on to say that the law should cover the interests of other sectors of the tourism industry. When pressed on which sectors, however, he mentioned that of the travel agencies. What is Iriondo’s background? Travel agencies. Viajes Kontiki, to be precise.

In calling for other sectors’ interests to be considered (and what, pray, are the concerns of the travel agencies), Iriondo and the tourist board have a credibility problem. It’s true that it, via its “junta” members at any rate, represents different sectors (restaurants, transport, marinas and so on), but of those members, four are senior executives with leading hotel chains. The independence that the tourist board claims, and its values, to include “plurality”, go only so far.

There is no genuinely independent tourism body in Mallorca. Were there, then it might just be prepared to point out that tourism, in terms of its accommodation, is more than simply hotels. But the alleged discrimination shown towards the holiday-let sector would still prevail. No one will stick up for it, because no one dares to.

The outcry from owners of property denied the opportunity to rent it out will ring around the letters pages. Here’s my advice: don’t waste your breath. No one who matters is listening or will listen, unless they are from the tourism ministry inspectorate or the Hacienda, or both.

Of course, the holiday-let sector isn’t discriminated against to quite the extent that is suggested. The new law contemplates an extension of the commercialisation of properties on “rustic” land and of holiday homes which are detached or semi-detached. It is the private apartment which really bears the brunt of the discrimination and of an absence of procedure by which it can be “regularised”.

While the government’s taking up of arms and mounting of a crusade against illegal accommodation is the headliner to grab the attention of the indignant property owner, there are other aspects of the draft law that are worthy of attention as well, and not just the changes of use that the hotels are to be permitted to undertake.

The director of the Mallorca hoteliers federation, Inma Benito, has come out with an intriguing statement. It is one to do with all-inclusives. She has said that the current all-inclusive offer needs to be revised profoundly and a consensus arrived at. What she has also alluded to is the need for spend to reach out to the bars and restaurants in tourism areas. The tourism law says nothing about all-inclusives per se with one indirect exception: that the taking of food and drink outside a hotel will be prohibited.

One presumes this means no more “picnics” being taken out of hotels and a way of tackling the unedifying sight of tourists wandering along streets with plastic glasses of beer or heading off to beaches with plates of food. But how this prohibition will be policed is another matter.

Nevertheless, if the hotels are serious about revising all-inclusives and can work this into the bill, this might just be the best thing to come out of the new law.

I’m speculating, but what they may be referring to, and this would be in line with one of the new law’s main aims of effecting a general upgrading of hotel stock, is the fact that all-inclusive has to mean all-inclusive, i.e. the standard of service would result in many three-star hotels simply not being capable of meeting the standard. There could also be some suggestion that the hotels are contemplating the type of “mixed” all-inclusive whereby local bars and restaurants become a part of the all-inclusive offer. We’ll see, but it is encouraging that the hotels appear finally to recognise that there is an issue.

The new law won’t be to everyone’s liking, but its reform and the reforms it will enable (to misuse “reforms” in the Spanglish sense to apply to building) may just prove to be a part of the strategic plan that the tourism industry has long demanded.

Any comments to andrew@thealcudiaguide.com please.

The Old Folks At Home (29 November)

I went to the old folks home in Alcúdia yesterday. They had rung me up and asked me to come by. There was a surprise on entering the “residencia”. I remembered it when it was the Alcúdia hospital. The place has been completely transformed. They describe it as not really a hotel and not really a hospital, but it looked and felt more like a hotel.

I said to them that a perception of a residencia, among many Brits at any rate, is probably that of the “old folks home”, one of elderly people sitting around in stiff-backed chairs, staring aimlessly at a television screen, not always smelling of lavender, and waiting for the next trolley of tea to come by. The residencia really isn’t like that.

They wanted to do something about increasing awareness of what the place is really like, but that’s for elsewhere, as there is – along with every other part of Mallorca’s economy – a crisis in the residencia sector.

Workers at residencias across Mallorca have added their voices to the growing number of personnel that is either not being paid or is being paid late. Though the regional government or town halls don’t operate residencias, the companies which do are paid by government and the companies in turn pay staff salaries. Or don’t, as the government is in debt to them, as it is in debt to all manner of providers.

A protest planned for today outside the regional parliament by workers from different residencias adds to one staged by a hundred workers at the residencia in Marratxí on Saturday. It had been announced that November salaries for the staff in Marratxí would not be paid, this coming on top of delays in the past few months.

The residencia workers are far from being the only ones who have suffered because of the inability of government (or town halls) to pay suppliers, but problems with payment at this time of the year are particularly acute, given the proximity of Christmas.

The system of payment for those in the public sector isn’t collapsing, but it is on foundations that seem to be becoming ever more shaky, as is the edifice of the Mallorcan and indeed Spanish welfare state.

The residencias, in addition to their permanent residents, provide an important service through their day centres. These are important especially for the elderly who live alone and/or in conditions that are not much better than destitution.

A misconception that surrounds local society, in addition to one that the welfare state is particularly generous, which it isn’t, is that the family always takes care of its own, the elderly included. The family does of course provide, but not quite to the same extent that it once might have.

The Economic and Social Council for the Balearics has released information regarding the number of people aged 65 or older who live on their own. The percentage in the islands as a whole is just under a third, and one half of these either have no or very little by way of contact with family, while some 22% also have no obvious friends to call upon. Pensions, which Mariano Rajoy says he will safeguard, can be as low as 250 euros a month.

Demands placed on agencies outside the established welfare state have rocketed in the past few years, and not only for help for the elderly. The Cruz Roja and the Catholic charity, Caritas, are just two that have had to step in as a combination of economic crisis and a societal shift that has lessened the strength of the family has left an increasing number of people with little or no safety net; and crisis has itself contributed to undermining the wherewithal of some families to go some way to providing this safety net.

Crisis is not just damaging economically but also socially, and the strain of crisis is such that opposition parties accuse the regional government of stripping away nearly 250 million euros from that part of the budget that includes welfare and the family; a budget described as the “most anti-social” that the Balearics have experienced.

It is against this background, therefore, that the services of the residencias, more important than ever, find themselves also subject to the virus that is crisis and to a cycle of crisis that is vicious and seemingly never-ending.

Alcúdia’s old folks home, and more than just an old folks home, is mightily impressive. Whether the agencies of government are taking much notice of how impressive, however, is another matter entirely.

Any comments to andrew@thealcudiaguide.com please.

Mallorca’s Political Formula One (27 November)

While sport for all may be being brought into question because of the lack of financing of Mallorca’s sports facilities, sport for an elite poses its own question: is Mallorca really going to get a Formula One circuit?

Long in the suggestion, the regional government is, as it said it would, giving the proposal a serious once-over. The seriousness of this once-over has to do with the financing of a circuit, the government hoping that, were it a real goer, the money would be mainly or totally private.

When the idea for the circuit was doing the rounds last year, the cost of the project was put at some 90 million euros. A plan has in fact been drawn up, one that would pretty much completely re-develop the Rennarena in Llucmajor, which currently is totally inadequate for F1.

The plan would, for example, require a lengthening of the circuit by almost three kilometres plus creating grandstands capable of holding way more than the existing 1500 spectators. As with any plan for a building project, there are the inevitable procedures. The government says it will look at how this bureaucracy can be tackled, which probably means ignoring any planning issues. Already, one can hear the sound of GOB and other environmental protectors revving up their engines (with bio-fuel) in the protest pit lanes.

But talk of finance and procedures are only partially relevant. The chances of Mallorca’s F1 circuit ever even getting onto the starting-grid of potential grand prix, let alone being shown the green lights, have to be slim.

Bernie Ecclestone has been courted and Bernie has made some encouraging remarks, but then Bernie says all sorts of things. One of them is that he is against there being more than one grand prix per country. This hasn’t stopped Spain from currently having two – the Spanish Grand Prix in Barcelona and the European Grand Prix around Valencia’s street circuit – but Rome has pretty much given up on staging a street race from 2013 since a letter from Ecclestone in an Italian newspaper said that “no one” wanted two races per country (Italy already has Monza).

It also hasn’t stopped the USA being awarded two grand prix from 2013 – the revived US Grand Prix in Austin, Texas and a so-called Grand Prix of America in New Jersey. However, and despite F1 not being particularly popular in the USA, Ecclestone is largely motivated by commercial opportunities and by a desire to develop F1 geographically.

With these motivations in mind, where does a grand prix in Mallorca fit in? What is being hoped for in Mallorca is that it would replace Valencia as the location for the European Grand Prix. Valencia’s contract lasts until the 2013 race, though it has been rumoured it might be dropped after next year. So there may well be some substance to the Mallorcan hope. But it is one based on an assumption that there will still be a European Grand Prix. Rome probably saw this as its chance, but, and notwithstanding the American contradiction, Ecclestone is opposed to another race in Italy and may well see the end of Valencia as a reason to scrap the European Grand Prix.

There is significant competition from across the globe for circuits to be included in the F1 calendar, some of it from other countries in Europe. Croatia, for example, has its eyes on a grand prix. This competition merely adds to F1’s commercial and global ambitions in raising serious doubts as to whether Mallorca is a realistic option.

Given all this, therefore, should the government really be giving the proposal a serious once-over? The investment, were it to be private, wouldn’t be an issue, although the environmental objections are bound to be. But why would there be investment without any guarantee of success in securing a grand prix? It might be that, were the circuit designed appropriately or flexibly enough, it could also stage MotoGP, which is Spanish-dominated in terms of who runs it and the number of races – four in Spain for next year’s calendar. MotoGP isn’t F1, however; either its cachet or its cash.

The proposal isn’t particularly realistic, and one has the impression that its discussion both before the regional elections and now has been for political consumption. Former president Matas wanted a grand prix as well; one to be held on a Palma street circuit. That was an absurdity. Llucmajor isn’t, but the stewards flags should nevertheless be being waved furiously and warning that all the talk may just be PR and a raising of expectations that cannot be fulfilled.

Any comments to andrew@thealcudiaguide.com please.

Sport For All (26 November)

If you are a government minister, let’s say for tourism and sport in the Balearics, you would hope that you would have both some tourism and sport to be in charge of and both some tourism and sport on which you could lavish your ministerial munificence.

Tourism there is, but it has to scrape by on only a few quid for promotion, though when your ministry is in fact 32 million euros in the red, it’s surprising that there is a ministry at all.

Then there’s sport. Or rather, then there isn’t any sport.

Linked to the ministry is one agency from within the Balearic Government’s tourism organisation that has been allowed to escape the axe for being either pointless or up to its neck in misappropriation of funds, or both.

The Fundación Illesport came to public notice recently, as it was invoices to this foundation that first alerted the world to the inconvenience with which the Duke of Palma now has to contend. The foundation was handing over great wads of cash in return for what would appear, allegedly, to have been very little.

But the foundation has long been there, doing something about sport, which mainly seems to have involved spending the tourism ministry’s money, of which there now isn’t any. It’s a reasonable question to ask why a foundation has been needed when presumably they could just as easily have got some secretary in the ministry to prepare cheques, so one has to assume that the foundation has some altogether greater function.

It does, or did. It was still really only a case of doling out ministry money, but the foundation is (was) responsible, among other things, for sorting out financial assistance to town halls for their sports facilities. An agreement of May this year should have realised the release of 24 million euros to different municipalities, only eight million, therefore, short of the ministry’s total debt for this year.

Should have, because now the foundation says that it hasn’t got any money to meet these grants. A town hall that stands to suffer most from the lack of funding for sports facilities’ improvements is Sa Pobla; to the tune of 338 thousand euros. The mayor is threatening legal action.

There had already been an indication that money for sport was not going to be forthcoming, as a couple of weeks ago Santa Margalida had been told that it was not going to get the quarter of a million it had been promised.

As a consequence, sport, in the case of sport to support the health and welfare of the island, is being allowed to trail in well down the list of all the runners and riders that the government has to feed and nurture.

There are, though, two types of sport: that for the people of Mallorca and that for tourists. The tourism and sport minister, Carlos Delgado, took office with a brief that included giving a new impulse to sport in Mallorca and the Balearics. If there is an impulse, it appears to be directed at sport for tourism. When announcing recently that there was going to be only a negligible amount for tourism promotion, he did also refer to initiatives to further develop three “puertos deportivos”, one being that of Alcúdia.

What this would entail wasn’t made clear, and even though only three “sport ports” are being targeted, the priority for sport, where the ministry is concerned, seems clear enough, and it isn’t sport for the locals.

Sport usually finds itself losing out when governments come to having to make tough decisions. Perhaps we should be grateful that there aren’t proposals to sell off the playing fields and sports areas and hand them over to developers. Yet.

But sport plays a central role in the life of the island’s communities. One only has to scan through pages of the Spanish press on a Monday to get an appreciation of the scale of sport and its organisation in Mallorca. Pages of results, reports and photos of teams for football, basketball, athletics, whatever; men and women, boys and girls.

Sports tourism is one of the Big White Hopes of tourism diversification. It deserves to be prioritised. But for every development of a resort’s watersports, for every possible new golf course or – the new vogue – polo field, and for every route set aside for German oldsters to clack along with Nordic walking poles, sport at the local level should not be neglected.

The tourism ministry and its foundation will know that sport will just carry on without the injection of new money. But nothing lasts without investment. As a slogan once had it, “sport for all”. And not just for tourism.

Any comments to andrew@thealcudiaguide.com please.

State Of Independence: Tourism strategy (21 November)

There was one revealing quote from the interview with Esteve Bardolet* (“The Bulletin”, 20 November). Well, two, but I’ll come to the second later. Bardolet, one of the rare people it is worth listening to regarding Mallorca’s tourism, said, in the context of working with the Mallorcan Tourist Board: “I was totally independent. Neither I nor anyone in my family had any business interests in the world of tourism, so I was able to be totally impartial”.

Totally independent, totally impartial. This is not how you would normally describe different players in Mallorca’s tourism industry. The Mallorcan Tourist Board would claim to be independent, but it isn’t, given that it comprises representatives with their own specific interests, and this, pretty much, was what Bardolet was implying.

An independent and impartial perspective on the tourism industry is almost impossible to achieve. In theory, the government should have such a perspective, but it is beholden to powerful voices from within the industry. Think for a moment about how, before the regional elections in May, the hotels were saying that they didn’t want Carlos Delgado as tourism minister. He might just have proven to be a bit too independent of mind. Now, however, all is sweetness and light, and the hotels are having the industry served up to them on a plate. “A word in your shell-­like, Carlos,” might well have been words whispered in a quiet corner of the tourism ministry, along with “side”, “knowing”, “bread” and “buttered”.

The government, perhaps recognising the impossibility of being immune to influences from the industry, is trying instead to involve all sectors of the industry, bringing the various associations as well as airlines and tour operators into the tourism agency. It’s a bold move and one that makes a lot of sense, as a collective is formed of those who understand the tourism industry. The trouble is that they understand it in their terms. Whatever good words airlines or tour operators may utter, they do not consider Mallorca in isolation. They ultimately do what is good for them. If that includes Mallorca, then fine. If not, well, that’s business.

Bringing together the great and good of the tourism business world does not automatically mean that everyone sings from the same hymn sheet or that noses aren’t put out of joint. Palma town hall, in doing something similar to the tourism agency, has managed to dislocate restaurant snouts, but what the restaurants are really upset about by being excluded is the fact that they can’t voice their own interests.

Meanwhile, there is the government’s inter­departmental tourism committee. I have long advocated that, in the government’s organisational structure, tourism should be at the top of the pyramid, if only notionally, and that other departments function in a support capacity. This committee goes some way to achieving this. While it may not result in independence or impartiality, it may just prevent the sort of governmental turf wars breaking out that have been detrimental to the interests of the tourism industry.

There was no better example of this than during the last administration. Faced with his government collapsing, Antich handed out key posts to the Mallorcan socialists. One of them, environment, resulted straightaway and with total predictability in the paralysing of the Muro golf course. It wasn’t the government as such which stopped the development, it was one department. But Antich was in no position to argue.

Not having coalition partners that require pandering to does help, but government departments have a tendency to work to their own agendas, neglecting the common good. The government’s committee will not eradicate this and nor will it remove the influences that specific departments are subject to from outside government, but it’s a start.

What would really make a difference would be were tourism given a true dose of independent thought, a meeting of minds with the sort of impartiality that Bardolet has displayed. A tourism technocracy, if you like. And more than just impartiality, there might also be some realism, which is where that second quote comes in. Though Bardolet suggested that the north European market needed to be looked to in the winter (though isn’t it already?), he said: “the winters, I fear, will never work”.

Is this just defeatism? Possibly, but possibly it is an understanding, which is what Bardolet has in abundance. Facile prescriptions for Mallorca’s winter tourism that emanate from all quarters, issued through a myopic insularity and parochialism and through constant reinforcement of a groupthink style, often fail to take realism into account. It’s a painful truth, but Bardolet may just be right. We could do with more such independent thought.

* Bardolet is a former vice-president of the Mallorcan Tourist Board and was awarded a gold medal last week in recognition of his contribution to tourism.

Any comments to andrew@thealcudiaguide.com please.

Going, Going, Gone: Tourism promotion budget

Is there such a thing as an auction in reverse? Because if not, then the Balearics tourism ministry appears to have invented it. Do I hear nine million for tourism promotion? Any reduction on nine million? Mr. Delgado, 3.6 million. Any reduction on 3.6? Going, going … . At this rate and by this time next week, the tourism promotion budget will have gone; not because it has been spent but because there won’t be one. There they were saying that there were a mere nine million, and the next day Delgado goes and trims the budget by almost another two-thirds.

The ministry does, after all, only have a total of 63 million for next year. It is the lowest budget of any ministry, and tourism is only the most important industry, but needs clearly must in these austere times. Even so, 3.6 million? And the question is, what will the ministry find to spend the other 59.4 million on, as everything is being cut.

To this end, we will be sad to see one body fall to the ministry’s axe, as it has kept us so royally amused for a few years. The Foundation for Sustainable Development; they’re getting rid of it, along with its stupid “tarjeta verde”. I may need to remind you that the foundation and the card were what replaced the eco-tax. All these tourists were going to be buying one of these discount cards, all the money raised was going to save Mallorca’s environment; that sort of thing. The only problem was that no one bought one, or if they did, the money wasn’t handed over.

They had to find something else to justify the existence of this pointless foundation (and one, it should be noted, into which various banks pumped not insignificant amounts of money as well as the government), so they let it run certain sites of environmental interest, such as Son Real near Can Picafort. Then they had to find someone to be in charge and recently the PP government gave the job to Jorge Campos, the founder and president of the fiercely anti-Catalan Círculo Balear.

Poor old Jorge. Gives up his presidency and then finds he’s out of a job. He should have known better, as it’s a surprise that the foundation had been allowed to stagger on as long as it had, especially as it was due for the scrap-heap under the Antich restructuring of the tourism ministry. So much for him having mates, like Bauzá, in high places. They’ll probably find him something else.

And so they should, as Campos’ brief time in charge of Son Real has had high amusement value in itself. For example, he insisted on putting up a Spanish flag at the entrance, thus provoking all manner of Catalanist indignation and Maulets radicals, who of course can’t stand him, into promptly going along and taking it down.

Meantime, Santa Margalida town hall was sent an invoice for a visit with people from the Alicante town of Vall d’Ebó, with which Santa Margalida has a sort of twinning arrangement. We’ve never had to pay such invoices before, said the mayor, who has threatened that if the demand (for 159 euros) isn’t withdrawn, the town hall will claim 12,000 euros from the foundation relating to a licence for works at Son Real that wasn’t pursued. Yep, things certainly have been fun, and petty, since Campos took over.

But the town hall probably won’t now be able to claim its 12,000, as it’s farewell to the Foundation for Sustainable Development. Sadly, it couldn’t sustain itself, but we greatly appreciate the entertainment. Of its responsibilities, Son Real will end up with something called the Espais de Natura Balear, while Costa Nord, its biggest responsibility, will go to the tourism agency, which is where (and the agency’s previous incarnation as well) it should have been all along. The foundation, though, and let us not forget, was a creation of former PP president Matas. And we know all about the various bodies Matas set up, though not quite as much as the anti-corruption prosecutors do.

The tourism promotion budget, or lack of it, is, though, the headliner. 3.6 million. It really is a pittance. But there’s more. What about those arts festivals the ministry is meant to support financially? Like the Pollensa Music Festival. The ministry’s not saying, other than to imply that unless an orchestra-pit load of private sponsorship can be found, it probably won’t happen. And if it and others don’t take place, the ministry will have to fork out for changing all the publicity material. I wonder if they’ve accounted for this in the budget?

Any comments to andrew@thealcudiaguide.com please.

Tightening The Nóos (10 November)

All this talk of all-inclusives and a lack of winter tourism and flights ruining the paradise island, blah, blah, and one quite loses sight of what really put the “mal” into Mallorca with two l’s. Corruption, and lots of it.

We have been sidetracked these past few months into neglecting the fact that cases surrounding the one-time Balearics president, Jaume Matas, are still going on. Lord alone knows how much this is all costing, but presumably there are special provisions, given deficit requirements, to allow for the payment of an army of investigators.

The current president, José Bauzá, is probably, on balance, quite content for the cases to still be being played out and periodically splashed all over the Spanish press. It might be a tad embarrassing that Matas was his predecessor as a PP president, but Bauzá made a virtue of excluding any candidate implicated in corruption from the spring elections. In the process, he might have hoped to undo all the scandal that has made Mallorca an object of such enormous amusement, but he can’t do much about the elephant in the room – Matas, the gift that keeps on giving.

When you had pretty much forgotten that investigations were still ongoing, out of the blue come revelations of the type that had helped grant Mallorca its deserved status as one of the great centres of comic corruption.

The latest ones involve a minor royal, the Duke of Palma. The royal household has felt compelled to issue a statement that it has no comment to make on allegations being made about him other than to say that it respects the work of the judges. Minor royal he may be, but there is the slight matter of who he is married to – the infanta Cristina.

To cut to the chase, the Duke was at one point the president of something called the Instituto Nóos, an institute for sponsorship and patronage. What the investigators would like to know is why the Matas government, mainly through a body known as Illesport, paid the institute 2.3 million euros between 2005 and 2007. There are questions relating to four invoices totalling 1.2 million euros in respect of the staging of a 2005 forum and to invoices for nearly 450,000 euros that were raised a month before the 2007 elections, which Matas lost.

There was a common theme to these invoices, as the forum and the later 450,000 had to do with a so-called observatory of tourism and sport. At the forum this concept was discussed, whatever it actually meant, but nothing more was heard of it. However, the invoices of April 2007 mention it specifically.

No one seems to quite know what this observatory did, if anything. With the money the invoices generated, the institute made payments of its own, among which were those to companies belonging to one Diego Torres, an “expert in marketing”, who succeeded the Duke as institute president in 2006, and also to a real-estate company run by the Duke.

Of course, there may be a very good explanation for all of this, while the revelations are all the more thrilling for the press as they involve royalty. But what they do, once more, is to highlight the tangled web of government agencies and foundations, especially within the area of tourism, and of other organisations, such as the Duke’s institute, which were associated with them. Of these agencies, mostly all are now defunct, having been scrapped by the last government when the full weight of corruption charges hit the tourism ministry.

Why were there so many, though? And why was there ever any need for an “observatory” of tourism and sport? It may be unclear what its purpose actually was, but it sounds not dissimilar to the government’s own so-called tourism strategy and research agency, Inestur, one of the agencies that now no longer exists. The Illesport agency was in fact a foundation for the support and promotion of sport in the Balearics. It might be argued that it was appropriate for it to engage the services of a specialist operation, i.e. the Instituto Nóos, but then what did it actually do, other than give money out?

The point is that, even if corruption comes to be proven, the real problem was all the various bodies that were set up with seemingly little or no control or idea as to why they were being set up. Tourism, and its associated sport sector, may have had its governmental budget cut, but it is still, as it was under Matas, a goose that lays the golden egg, or should that be the noose that lassooed a golden egg? Only to end up hanging itself. Allegedly.

Any comments to andrew@thealcudiaguide.com please.

Short Train Running (Or Not) (9 November)

The enthusiasm with which President Bauzá greeted the news of the “Mediterranean corridor” high-speed rail service on the mainland contrasts with the apparent indifference of the regional government to a railway in its own backyard – the extension from Manacor to Artà.

Bauzá’s support for the mainland service stems from its potential to cut the cost of imports to the Balearics. It may have some impact in this regard, but if he were serious about making imports cheaper then he should be doing all he can to tackle the cost of shipping. While he has made an economic case in favour of the high-speed service, his own government has made a different economic case – against the Manacor to Artà line.

This rail line, work on which is currently suspended owing to what is said to be a lack of finance, has provoked all manner of argument and recrimination, culminating in a protest in Son Servera at the weekend. It is just the latest manifestation of arguments that have dogged the line ever since the previous regional government announced its development.

The protest and the wishes of the mayors of Son Servera, Artà, Sant Llorenç and Capdepera to get work on the line unparalysed form another contrast – that with the opposition to the project among residents when the plans for the project were first drawn up. The rail line has never had anything like unanimous support.

Much of the opposition was of the nimby variety, but it is ever thus with such infrastructure projects. More objective was the report by the island’s Chamber of Commerce which questioned the wisdom of the rail line and in particular the then regional government’s figures in terms of usage and return on investment.

The mayors are in favour of the rail line, though, because of possible economic benefits to the eastern part of the island and because of what is a comparatively poor transport infrastructure. Another voice, that of the president of the hotel association in Capdepera, speaking in the context of there being just one hotel and one hostel open there this winter, has called for transport improvements. The argument isn’t a strong one, as the internal transport infrastructure isn’t really an issue when it comes to winter tourism, but he does have a point in respect of what are weak transport connections – both road and rail – that apply to most of the east coast.

Rather than the work on the line having been stopped for financial reasons, the mayors believe that the regional government took a political decision when it halted the work. And messages coming out of the government are, it must be said, somewhat confusing. A couple of weeks ago the responsible minister, Gabriel Company (environment and land), insisted that the government hadn’t given up on the rail line and that its future depended upon funds from central government. At the same time, however, he was flagging up the notion of Mallorca having a “corridor” of its own, a green one that would run the length of the rail line.

The mayors, however, claim that there are state funds that would allow work to continue, and they wonder why the regional government took its decision without apparently discussing the matter with the development ministry in Madrid. Whoever one believes, and it is difficult to know, the immediate future of the rail line is due to be the subject of a meeting that has been called, bizarrely enough, three days after the national election on 20 November.

Whatever the outcome of that meeting and indeed whatever the future may be for the Manacor to Artà line, if it has one at all, the arguments over its development, as with other arguments surrounding transport projects on Mallorca, raise a question as to whether a real, a sensible and an integrated transport system can ever be agreed.

Mallorca is small enough that it might be argued that it doesn’t need a rail service, or at least any development of the existing one. On the other hand, and though the Manacor to Artà line would only be 30 kilometres long, the island is sufficiently large enough to accommodate more rail transport; indeed, it probably should have more rail services. But what seems to be lacking, and has been lacking, is a true appreciation of all the social, environmental and economic issues (the latter to include tourism) as they apply to the island’s transport system.

If the paralysis of the Manacor to Artà line has any benefit, it is that it might just inspire a proper investigation of the needs of this transport system. Though when that might ever happen, heaven only knows.

Any comments to andrew@thealcudiaguide.com please.