Death Row: Empty units

What do you do with units that have been empty for ten years or so?

Playa de Muro has a number of such units (or “locales” to use the native). They are grouped together. A row of abandoned restaurants, shops and bars with forlorn for sale or for rent signs that have been in their windows for so long that they have pretty much acquired the status of being the units’ names, except that they are all the same and therefore indistinguishable from each other, which is appropriate as none of the units is in any way distinguished.

Who was it who ever gave permission for the type of architectural abominations that were allowed to spring up in the name of commerce? The more contemporary units in resorts such as Playa de Muro are without any character, any atmosphere and any redeeming feature. It is small wonder that they are empty and have, in some instances, been so since the turn of the century.

These are not units that have been solely ravaged by the arrival of the all-inclusive. Some have, but many closed before the all-inclusive really took hold. They have been empty because they are hideous, because there are too many of them and because no one in their right minds would pay the traspasos being asked, let alone the rents.

So unattractive is this line of abandonment that you can understand why tourists might prefer not to go a-strolling at night. Despite the valiant efforts of the Boulevard group which demolished some units and stuck up a glass-faced office building replete with tex-mex, tabacs and a fashion store and which thus gives the impression of at least some life (and light at night), the ugliness of the dark, dingy and long-vacated units deprives this part of the resort of any hint of charm.

It is easy perhaps to suggest that this death row of units is a portend of the ghost-town cliché set to be used for other resorts as a consequence of all-inclusives. It is certainly true that the closure of units is gathering pace elsewhere, but this is only partially explained by the loss of business. The story is often the same. It is one of rents being too high and of irrational landlords being unprepared to lower them. But it is also one of units that are, at best, functional and, at worst, simply unappealing.

The tourism ministry of Carlos Delgado has spoken about the redevelopment of older resorts. Taking the lead from the transformation of Playa de Palma, if it ever happens, this would involve an upgrading of the likes of Magalluf and Alcúdia. Meliá Hotels International’s announcement of its Magalluf megacomplex is perhaps the first stage in this. But the hotels are only one part of the story.

Playa de Muro is not as ancient as other resorts; part of it, yes, but not all of it. Indeed, the resort has been praised for the style in which its coastline was planned with what are modern hotels of a high standard, including three five-star hotels.

Because of the hotels, the resort would be unlikely to feature prominently on any list of resorts due for beautification. Were money no object, a solution would be to demolish the empty units and make green areas. But for different reasons, it wouldn’t happen, one of them being because they are someone’s assets.

And it’s when you come to learn whose assets they are that you begin to understand how such units can be allowed to be left empty for so long. They ultimately belong to a hotel. When I found this out, initially I was shocked. Why would they just leave them like they are?

It’s a good question. It doesn’t, you would think, help any hotel in any resort to have the appearance of abandonment, but should we be surprised? Hotels, in general and increasingly, seem to show scant regard for what goes on outside their grounds, as evidenced by the all-inclusive. Though this particular hotel isn’t all-inclusive, its publicity is almost as good as. What it packs inside its grounds allows it to say that everything is in one place “without leaving the hotel”.

One concludes, therefore, that there is a take it or leave it attitude towards the units. They are assets on a balance sheet that one day might be sold or made productive. It doesn’t really matter. And if there are no competitor restaurants or shops around the corner, then even better.

Take it or leave it. Yes, people have. They have left the units; they left them long ago. And now they are just left to rot.

Any comments to andrew@thealcudiaguide.com please.

The Great Reform Act: Mallorca’s hotels

President Bauzà and tourism minister Carlos Delgado have been parleying with the hoteliers. Love is now in the air where once were poisoned arrows, those being lobbed by the hoteliers in Mr. D’s general direction.

Delgado is promising the hotels just about everything they might have wished for: a change of use for obsolete hotel stock; a new tourism law that will make procedures more flexible; a crackdown on illegal accommodation. Throw in some redevelopment of resorts and you have just about the perfect result for the hotels.

Just about, but not entirely. The redevelopment of Playa de Palma, still being battled over and still short of funding, is held up as the model for resort upgrading elsewhere – Magalluf and Alcúdia have been mentioned specifically – but not all hotels in Playa de Palma want to see changes that might remove the bread and butter of the three-star hotel.

But plenty do want improvements. Mallorca’s tourism industry suffers from having been one of the first locations of the tourism industrial revolution of the mid-twentieth century. As with all original infrastructures, they become obsolete or old-fashioned; hence the desire to redevelop the resorts.

Knocking old hotels down isn’t really an option except in extreme cases, but upgrading them or converting them is. One type of conversion would see hotels become condohotels; another would let them become residential. With either option, and depending on the precise nature of what “condo” might actually entail and what constraints, if any, were placed on what could be done with these residential former hotels, what you might end up with is a system whereby holiday lets are made available under the control of the hotels.

You can conclude, therefore, that behind the opposition to holiday rentals and behind what is now meant to be a more rigorous approach to stamping illegal ones out, there is another dynamic. The hoteliers aren’t daft. They know full well that a market, a very sizeable market, exists for accommodation which isn’t that of the hotel. What could be better than to get hold of that market as well, whilst at the same time seeking to eliminate or limit alternatives.

The hotels have been lobbying to be able to undertake conversions for some years. The consequence of this, however, together with a reduction in total hotel stock envisaged under plans for Playa de Palma (and therefore elsewhere, you would think) and the fact that Delgado doesn’t foresee new hotels springing up in abundance, is that there will be fewer hotel beds around.

This could all make sense if you believe that Mallorca’s tourism should become leaner if not necessarily meaner. However, take a certain number of hotel places out of the equation and the attack on the holiday-rentals market looks even more ludicrous than it already is.

Following my article of 5 July (“No Hope”), I had some correspondence on the issue, and one question that came up was just how many hotel beds there are in Mallorca. I’d thought finding the answer would be difficult. It wasn’t. Thanks to the Fomento del Turismo (the Mallorcan tourism board), I discovered that in 2005 there were 283,436 beds. The figure won’t have changed materially. It was also easy, because I had written about it before, to find out how many tourists, at the very height of the summer season, there are. In August 2008, the number peaked at 1,930,000 in the Balearics; it will be higher this year.

Allowing for the other islands and various other factors, you can guess that, at a conservative estimate, there are at least as many tourists who stay in rental accommodation such as apartments and villas as there are those who stay in hotels. If the hotels cut their overall capacity, and even if they don’t, were holiday lets to be driven out of business or to be hounded more than they already are, where on earth would everyone stay?

The hotels might think that condos and hotels converted to residential use might go some way to housing these tourists, but the numbers would surely not be great. Plus, you would have lost those hotel beds into the bargain. Far from holiday lets being “unfair competition”, they are in fact a competitive necessity – for Mallorca and its whole tourism industry.

I have high hopes for Delgado. He should go some way to proving that these hopes are not misplaced. He should look at the total mix of the industry he now presides over and come to a conclusion that the hoteliers might not like, but which Mallorca can ill afford to be without.

Any comments to andrew@thealcudiaguide.com please.