In spite of the reported increase in tourist numbers in July, the majority of the island's businesses have still seen their turnover decrease compared to last year. Overall, 59.6% of tourist-orientated companies experienced a decline in trade last month, according to a survey carried out by PIME (the federation for small and medium businesses).
The report highlighted the effect that the all-inclusive deals offered by hotels is having on sectors such as catering or shops, not only in the tourist areas but also in the island's towns.
Cafeterias, bars and restaurants are suffering the most from the competition offered by the hotels, with 67.2% reporting their takings in July down on last year and only 9.09% seeing an improvement. Likewise, shops are having a quieter year with 54.9% having seen their turnover drop this July.
In general, car hire firms are having another bad year with 73.68% doing less business, 21.05% the same and only 5.26% reporting an improvement. The owner of one company explained that they had purchased extra vehicles this year to ensure that they did not run out of cars, as was the case last year, only to find that the season was far worse than in 2009 and only during the first two weeks of August was the majority of the fleet hired out.
The rural tourism sector appears to be faring slightly better, with 40% of those questioned having maintained last year's volume of business, 40% seeing a downturn and 20% increasing their trade this year.
The survey shows that self-catering accommodation companies are also having a hard year with 61.54% down on July 2009, 38.46% the same and none reporting an upturn in business.
In respect of the nautical sector, 52% of companies report that turnover is down on last July, 32% state that it is at the same level and 16% have improved on last year's figures.
Island Council
The Island Councillor for Tourism, Lázaro Criado, reiterated last week that the Island Council of Menorca has for some time been against the proliferation in all-inclusive outlets, adding that whilst he accepts that it is a "legitimate and legal" deal for hotels, in his view it is a "bad and short-term bet".
Criado's opinion echoes that of PIME which lays the blame for the 60% drop in July's turnover firmly on the shoulders of the all-inclusive deals.
The Councillor believes all-inclusive deals to be a wise business strategy in resorts which lack an external infrastructure or where safety or hygiene cannot be guaranteed off site, but feels that, in Menorca, they fail to make the most of the island's attributes and in the long-term will be counter-productive for the Menorcan tourism sector.
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