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.

Who Wants To Be A Nine Times Millionaire? (14 November)

Nine million is a fair amount of wonga. You can do all sorts of things with nine million, like paying the Duke of Palma’s institute four times over – allegedly. Or it could pay the mortgage for ten apartments of the sort that President Bauzá has in what is described as one of the the most expensive parts of Spain – Sa Calatrava in Palma – and not allegedly, but fact.

So yes, nine million goes a fair old way. But it still does depend upon how you might intend blowing it all. That’s why I’m giving you a little game and then test. It’s best if two of you play; something for one of those boring winter afternoons in Mallorca when there’s nothing open and the skies are ominously silent and without any sign of aircraft. One of you has to imagine that he or she is the tourism minister (to get into the right mood, think being a bit of a shorthouse, if you aren’t already one, and being generally disliked especially by members of your own party). The other has to pretend to be in charge of the tourism promotion pot at the Balearics Tourism Agency. Ok, ready?

Tourism minister: “Right now, Juan (feel free to substitute a different name, if you wish), the president, myself and the finance chappy have been putting our heads together and we’ve come up with your budget for next year. Hold your hands out.”

Juan: “Nine million! What do you expect me to do with nine million? Have you any idea how many countries we’re supposed to be promoting to?”

Tourism minister: “Look, it doesn’t matter. The Brits’ll be flocking in next year anyway. And the Krauts. The Ruskies, too. Up 80% more already this year. Think of all that bling jangling as it reaches for the folding notes. It’ll do wonders for the tourism spend statistics. Great PR for when they’re all rioting in the streets next summer when Rajoy pulls the plug on pensions.”

Juan: “But nine million. That’s barely enough to pay for Nadal’s arm let alone Nadal. Then there’s the boat. And the prime time. The prime time, minister, in God knows how many countries. Nine million. That’s the approximate equivalent of only one euro for every tourist who comes to Mallorca.”

Tourism minister: “Yea, but we’re not using Nadal, unless he does it for nothing. And what’s this one euro for every tourist business got to do with anything?”

Juan: “Well, nothing really. I just thought it sounded good. You know, like in a political way.”

Tourism minister: “Brilliant. You’re on to something. I’ll use it for my next speech. The government will be spending one euro on every tourist coming to Mallorca. It’s so ambiguous it’s genius. Is it austere or is it generous?”

Now, having undertaken your role play, you have to, using your skill and judgement, come up with how you would spend just nine million euros for a whole year to promote not just Mallorca, but also Menorca, Ibiza and Formentera, not just to the UK, but also to Germany, Scandinavia, France, the Netherlands, Belgium, Austria, Switzerland, Italy, Ireland, Poland, Russia, Ukraine, China … .

Ah, you see, it’s not so easy, is it? Put you on the spot a bit. It’s no use saying they should splash out on some grand TV ad campaign, because they’re not going to. Not on nine million they’re not.

While one of you figures out how best to spend the meagre nine million, the tourism ministers among you need to think strategy. That’s a tough one, as there haven’t been many tourism ministers who have ever done that. But it’s important. Really important. You might be able to get away with spending hardly anything next year, but nothing lasts for ever, as Mallorca well knows having slid from its one-time position of invincibility. But this is Mallorca’s big chance, perhaps its last chance.

Events have conspired to create a record summer for tourism in 2011 and will do so again in 2012. But after next year? It’s going to take some money, and rather more than nine million annually.

By the way, those of you who come up with the most creative ways of spending the nine million will be entered into a prize draw. First prize is two weeks in a Mallorcan-owned all-inclusive hotel. In winter. In the Dominican Republic.

(And by way of clarification, the budget for tourism promotion last year was 27 million, which should in fact have been 44 million.)

Any comments to andrew@thealcudiaguide.com please.

The Worst Form Of Tourism

The World Travel Market (WTM) in London starts tomorrow. The world will be travelling to the ExCel; getting on for 5,000 exhibitors, 3,000 journalists and any number of VIPs, politicians, businesspeople and the poor sods who have to stand around at the exhibitions for four days.

Among the exhibiting of the 5,000 will be the Balearics Tourism Agency (stand EM1650, if you must know), proudly listed in the alphabetical running-order below Baki Tur, not a tobacconist tour agency but something designed to get you heading off to Azerbaijan. There is an awful lot of world travel to be had nowadays. How very different to the days when the Mallorca (spelt with two l’s for the purposes of the WTM) Tourist Board was founded in 1905. Sharing the stand with the tourism agency, its blurb reminds everyone that it really is this old and that “2005 will its centenary year”. Oh well, let’s hope no one actually reads the blurb. There’s nothing like incorrect grammar and downright error to influence people.

The Balearics participation in this year’s WTM is, as has been well-publicised, an altogether more austere affair than it has been in the past. The hangers-on are down in number and the budget has been cut. Tourism minister Delgado has insisted that the fair isn’t an excuse for a jolly; it’s all about business. Which is only right as the WTM itself has adopted the snappy slogan “WTM Means Business”, which it doesn’t as it means World Travel Market, but let’s not quibble.

The WTM isn’t just about stands and selling destinations. It is also about trends, and each year a report is produced which considers these trends and immediate prospects. But such reports overlook the unexpected. The 2010 report had nothing about the Arab spring. It predicted “weak performance” for European travel and tourism, which was right only up to a point as it hadn’t figured on the boost that the Arab spring gave to tourism to destinations such as Mallorca.

And word coming out of the WTM is that the Arab effect hasn’t finished. Libya and Syria together with a perception of growing Islamist influence in both Tunisia and Egypt are likely to help to make 2012 just as good for Mallorca. What can’t yet be determined is the extent of any fallout in Europe itself as a result of the Greek and Euro crisis. It is perhaps slightly unfortunate that the WTM international press centre is being sponsored by the Greek National Tourism Organisation.

Among the speakers at the WTM will be representatives of organisations that make it sound like an echo of the recent ABTA convention in Palma – British Airways, Royal Caribbean, Google – but perhaps the most interesting will be Leo Hickman.

That Hickman is a journalist with “The Guardian” is likely to have you leap to all manner of conclusions, but what he has to say is far from unimportant and will chime with what many think about issues in Mallorca. His book “The Final Call” was based on travels across the globe; he didn’t make it to Mallorca, but he did get to Ibiza where there are similar issues.

To give you a flavour of his views, and I quote from an interview on the Worldhum website, here is Hickman on tourism in general: “a one-sided transaction whereby the buyer – the tourist – comes off much better from the deal than the sellers at the destination”. “Tourism predominantly creates ‘McJobs’ … it is largely a myth that (it) creates a form of trickle-down wealth for all.” Here he is on “nefarious” effects of tourism. Sex tourism is the worst, but beyond this come all-inclusive hotels (and cruise ships); “one of the most damaging forms of tourism in the fact that they offer the destination so little”.

Hickman also refers to the theory of the remarkably named Dr. Stanley Plog who has plotted the rise of tourism destinations to a peak of too much development and then an inevitable decline, one that can be avoided by the right planning by regional governments and others but is all too often absent and instead dominated by short-term thinking.

There is an awful lot of sense in what Hickman says. Though the Balearics Tourism Agency will be busy doing business, it might do well to send at least one of its representatives along to Hickman’s presentation. Tourists getting much the better of the deal, McJobs, all-inclusives the worst form of tourism after prostitution, and the inevitable decline of destinations that are too developed. It does sound rather familiar.

Any comments to andrew@thealcudiaguide.com please.

The Good, The Bad And The Holiday Let

I’m going to give you a list of organisations. When you get to the end of the list, here are your questions – what do they have in common and what is missing? Here goes, and pay attention:

The hotel federations of Mallorca, Menorca, Ibiza and Formentera; the association of hotel chains; the association for agrotourism; the Mallorca Tourism Board; the chambers of commerce in Mallorca, Menorca and Ibiza; the federation of local authorities; the University of the Balearic Islands; the associations of small and medium-sized businesses in Mallorca, Menorca and Ibiza (PIMEM); the association of travel agents; the school of hostelry; airlines; tour operators; unions.

Ok, if you have said they have all been invited to form part of the Balearics Tourism Agency, then have a banana. This is indeed what they all have in common.

Pretty big agency, huh? Yes, but a reason behind them all joining the agency is to avoid duplications in tourism efforts. So, credit where credit’s due. The agency may now sound unwieldy, but better this than numerous bodies here and there doing their own things.

But what of the second question? What’s missing? Need some help? Just look at the list again. Which are the really big players? Tour operators, airlines, yes, but also the hotels. Still don’t know the answer? This is a tourism agency, don’t forget. Tourism requires accommodation. Are you getting warmer?

Nowhere in this coming together of pretty much all those who matter in Mallorca and Balearics tourism is any representation of non-hotel accommodation: the holiday lets. The tour operators are one player that has an interest in this type of accommodation, others do to a degree as well, but otherwise there is no voice at all.

Why isn’t there? The obvious answer is that there is no body to represent what is a highly fragmented part of the local tourism industry. Even if there were, how well organised it would be would be open to question. There are all sorts of reasons why owners of holiday lets might not wish to be part of an organisation. This aside, the chances are that it wouldn’t be invited anyway.

Two summers ago some grand strategy talking-shop was meant to have been organised by the tourism ministry. It never actually met, but had it done there were to have been two key problems to be addressed, those of seasonality and holiday lets. While mostly anyone associated with the tourism industry would agree that seasonality is a serious problem, only certain parties openly state that holiday lets are. Who were due to have been involved in this strategy talking-shop? The hotels and unions for a kick-off. Both of them antagonistic towards holiday lets.

Amongst the organisations being pulled into the tourism ministry’s agency now, there are few which might speak out in favour of non-hotel accommodation. You might hope that the university would offer an independent view, for example. But as for others, they will mostly tow the line, the one that the hotels, the unions and therefore also the tourism ministry promote: that holiday lets are a bad thing.

Not completely a bad thing, as the tour operators will be quick to point out. But their interests lie with the regulated and registered villas of Mallorca. The airlines might also point out that holiday lets are not a bad thing. What about PIMEM? Where would it stand on the issue?

PIMEM has a bar and restaurant division. PIMEM is quite vocal on different matters, such as all-inclusives. A bad thing, it has been saying recently. It has also been saying that permission for hotels to convert to condohotels would be a good thing.

A hundred or so hotels are already said to be planning to sell off rooms and apartments in anticipation of a change to the tourism law which would permit condohotels and which would therefore create a type of residential tourism, akin to holiday lets but to the hotels’ advantage.

PIMEM reckons this is a good idea because it isn’t all-inclusive and because it would benefit its restaurant members, given the type of tourist it would attract.

But this is precisely the same argument regarding holiday lets. Or one of them. So why doesn’t PIMEM come out and support these? Probably for the same reason that the tourism ministry won’t. It doesn’t want to upset the hotels.

The newly constituted tourism agency is a good thing in many respects, but in one, that of a whole sector of the tourism industry, it isn’t. The momentum against holiday lets is unlikely to let up. Unless there are now voices at the agency to say otherwise, it is likely to get very much stronger.

Any comments to andrew@thealcudiaguide.com please.