German tourists 'abandon' beautiful Spanish island as holiday costs soar

German tourists are abandoning Majorca, as soaring prices make vacations on the island increasingly too expensive. For decades, German tourists have been one of the largest groups of foreign visitors holidaying in the Balearics.

They have also been willing to pay higher rates for their vacations on the islands, endearing themselves to local businesses in the process. However, the country's economy has been stagnating of late, adversely hitting the spending power of German families. Rising energy costs, de-industrialisation and inflationary pressures have left German households with less disposable income for their holidays, making Majorca prices appear too expensive.

Germans are deserting the popular holiday destination in favour of cheaper alternatives, new data appears to suggest.

May and June saw a significant decline in tourist arrivals from Germany, after two years of record-breaking growth. The drop in numbers has coincided with an explosion in holiday prices, which have surged over the past two years.

Holiday costs soared by 33% in 2023 compared to 2022, whilst hotel rates shot up a further 19% in 2024 compared to the previous year.

Some have tried to blame the ongoing anti-tourism protests for the decline in German visitors.

Pedro Fiol, president of the Balearic Islands' travel agents' association, dismissed the idea, saying price inflation was the root of the problem. "There are signs of fatigue in the main markets," he said. "The supply is not adapting to the needs of the core customers."

Industry insiders are predicting July and August figures will confirm the slowdown, as Germans look for cheaper destinations.

Tour operators already noted in March during the ITB travel fair in Berlin that there was an increased German interest in cheaper destinations as alternatives to what they dubbed the "new luxury Majorca".

Despite the drop off in German visitors, the total number of foreign tourists to the Balearics rose by 3% year-on-year in June.

2,262,589 arrivals were recorded for the month, the highest among all of Spain's regions - according to data from the National Statistics Institute.