Restaurants tell the Balearic government it wasn’t a profitable season

Representatives from restaurant associations in Mallorca, Minorca and Ibiza/Formentera as well as from the Balearics-wide federation said on Tuesday that the summer season was not a profitable one. This was despite revenue having been at a record level and the number of tourists having been more or less back to pre-pandemic levels.

At a meeting with President Armengol and the tourism minister, Iago Negueruela, they explained that the increase in costs because of inflation and the energy crisis meant that while the season was “good in terms of sales, it wasn’t for profits”.

Insularity, which makes the Balearics particularly vulnerable to increased costs of transportation, was a factor to be added to the general increase in the cost of products, such as ice, beer, bread, coffee, fruit and meat. The average rise in gas and electricity bills was between 200% and 300% – 20% of business costs.

They stressed that “there is widespread concern for next year due to uncertainty at a national and European level” and called for government help in requesting more aid and a reduction in energy taxes.

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