Shops and companies connected to the tourist trade in urbanisations in Alaior, Ciutadella and Es Mercadal have seen their income severely reduced this season due to the increased number of all-inclusive packages being sold. Particularly hard hit have been the bars, restaurants and car hire firms. The Federation of Small and Medium Businesses in Menorca (PIME) warned last week of the economic damage being caused to the island's small businesses by this form of package deal.
According to statistics drawn from PIME's annual survey of its associates, tourist service companies reported a drop of 64% in income in June. The survey looks at the state of urbanisations and analyses twelve different aspects, including, for the first time this year, the all-inclusive holiday. The results show that, of the 34 urbanisations analysed, 10 were being affected by this type of holiday and 21 "badly affected", especially those situated in tourist areas in the districts of Alaior, Es Mercadal and Ciutadella which, together, contain 73% of the tourist beds in Menorca. Whilst recognising the hoteliers' right to sell their product in the way they consider best, PIME's General Secretary, Pau Seguí, stressed the damage caused by all-inclusive deals to small businesses and emphasised that companies and authorities must remember that on an island like Menorca any decision can have negative consequences on a sector of the population and on the economy. "All we know is that the all-inclusive trend is growing. People don't leave their establishment and the rest of the tourist service companies are affected", he warned.