The first big tourist fair of the year, FITUR, got underway on Wednesday under a dark cloud, with most experts admitting 2009 would be a difficult year.At the fair in Madrid the Minister for Tourism, Miquel Nadal, tried to remain positive claiming the Balearics held a distinct advantage over many other destinations. However, he finished by saying it would not be easy to equal the figures recorded in 2007 and matched last year across the four islands. He confirmed that if similar figures are hit in 2009 it will have been an extremely successful year. He then handed over to his namesake, Rafa, the number one tennis player on the planet, as the world premiere of the 30-second advert promoting the Balearics took place. In the ad Rafa invites viewers to come and get to know his home. “There exists some islands very close to you where the sun is always shining. Its beaches are spectacular and the natural environment incredible. Islands which have everything. These islands are my home. I invite you to get to know them.”
The timing could not have been better, as the launch came in the same week Rafa was crowned the Australian Open Champion, after a gruelling five-setter with Roger Federer.The ad will bombard advertising slots in both the United Kingdom and Germany as part of a €5 million promotional campaign. The good news at the market was the great positioning of the stand promoting Ibiza, after various complaints following the fiasco at the World Travel Market in London which saw the island’s promotional stand hidden away.
However, as the British economy entered into its first recession in over 15 years it became clear that price would be even more important in 2009. The president of the Hotel Federation, Juanjo Riera, called on hoteliers to maintain their rates for summer ‘09 against growing pressure from tour operators. Conservative estimates claim reservations from the British market are currently down by between 10-12 per cent for 2009, with some claiming this figure could be as high as 20 per cent. This has led to the tour operators slashing the price of holidays to Ibiza in an attempt to try and reactivate the market. However, this will, in turn, ensure they need more competitive prices from the hoteliers to make the island an attractive option against a weakening pound.
Riera, however, was quick to highlight that room prices on the island were already extremely competitive and there would not be too much room for manoeuvre. He pointed to the fact that whilst room rates had remained more or less static over the last few years, property tax (IBI) had risen by around 42 per cent and refuse collection by 56 per cent.
Similarly, the Secretary of State for Tourism, Joan Mesquida, warned against a price war which he claimed would only damage hotels in the long run.
Pepa Mari said each hotel would know best if their prices need to be reduced to become more competitive, although she insisted that lower prices should not mean a reduction in quality. She claimed she had had meetings with the main tour operators, and had urged them not to take any drastic decisions at the moment and reduce the number of flight seats to the island. She added there was still time for a recovery, and that they would receive the necessary support to help promote the island.
One market set to prosper during 2009 is the all-inclusive sector, as budgeting travellers try and control the costs of their entire holiday spending. Online travel operator, Lastminute.com, has increased the number of all-inclusive holidays it is offering for 2009 as a result of an increase in demand, which they believe will be well above the 21 per cent rise experienced last year.

The strong euro has also ensured non-euro zones have increased dramatically in popularity over the last year according to the popular website, with Tunisia up 71 per cent, Istanbul up 53 per cent, and Egypt up 22 per cent.During the fair Miquel Nadal revealed that the average tourist spend decreased significantly in 2008. In the Balearics as a whole, visitors spent a total of €8,146 million during 2008, €2,300 million less than in 2007. Similarly the figure for Ibiza was just as worrying with the figure standing at €1,439 million, 22 per cent less than the previous year. However, both Mari and the council president, Xico Tarres, cast doubt on the reliability of these figures, claiming they had a study undertaken by the National Tourist Board (Turespaña) which showed a 2.8 per cent increase on the island.