Mallorca’s Gastronomy Sector Faces 20 Percent Revenue Drop

International

Despite bustling streets, numerous cruise ships, and fully booked hotels, Mallorca’s gastronomy sector has reported a significant revenue decline.

According to Restauración CAEB, revenues in the first quarter of 2025 fell by up to 20 percent compared to the same period last year. The areas most affected include Puerto de Pollença and Playa de Palma.

Economic Concerns Despite Record Tourism

Juan Miguel Ferrer, President of Restauración CAEB, expressed alarm over the declining average spend per customer. Although the Balearic Islands welcomed a record 1.3 million visitors in the first quarter – including 810,000 international tourists – spending levels have dropped. "It appears that more people are spending less," Ferrer stated.

However, some areas have managed to resist the downward trend. Gastronomic revenues in Portixol and Plaza de España in Palma remained stable or even increased slightly.

Impact on the Local Economy

Ferrer warns of the broader implications, emphasizing that gastronomy is a vital economic indicator for Mallorca. "If spending in this sector decreases, it will inevitably impact the entire local economy," he explained. Reduced consumption in restaurants and cafes could also negatively affect retail, leisure, and service industries, potentially triggering a domino effect.

Call for Action

Ferrer urges heightened awareness of the issue and the development of measures to counter the negative trend. "Mallorca cannot afford to let one of its key economic drivers weaken – thousands of jobs depend on it," he concluded.

The situation calls for a concerted effort from stakeholders to develop strategies that support the island’s vital gastronomy sector and sustain its economic health.