Although we are far from Kiev, 2,600 kilometers as the crow flies, the war in Ukraine is starting to take its toll on Ibiza. On February 24, when the Russian invasion began, “tourist bookings dropped by 15%”, all of a sudden, a decline that lasted a couple of days more. Then “it started to recover”, explains José María Ramón, CEO of Neobookings, the booking engine that manages more than 60% of the beds in the Pitiusas. Despite some ups and downs, coinciding with the harshest phases of this war conflict, tourist bookings have recovered some ground: “The rate of reservations is maintained, although it is not a level like before the war began,” says Ramon, who stresses that, nevertheless, “the picture is not as fateful as the news that is being published” in some media and that focus, above all, on how Mallorca is affected by the downturn in the German market.
“It is amazing how much the tourist bookings are holding up. Perhaps this is due to the fact that the hotels still have quite flexible policies and people have the advantage to decide to wait and see what happens, given that it is easier to cancel”
Regarding the cancellation rates, Ramón assures that “in the last two weeks there has not been a significant change”. They remain at around 26% (between April and June), although it is striking that, in the last seven days, many cancellations have focused on April (the start of the season). “The volume of sales has dropped, but people have not gone crazy canceling. It’s pretty amazing how much tourist bookings are holding up. Maybe it’s because the hotels still have fairly flexible policies and people have the advantage to decide to wait and see what happens, since they can cancel more easily”, says Ramón.
For the moment, Spanish tourist bookings account for 22% of the confirmed nights in the last 30 days, followed by the British (21%) and the Italians (17%), who have regained momentum compared to 2021: “I was surprised that the percentage of Italy and the Netherlands is increasing compared to 2021, even though the Italians used to buy last minute”. The Netherlands has 8% of bookings, followed by France (7%) and Germany (6%). 24% of the nights are for June, 22% for July and 17% for August. For April there are only 7%, and for May, 16%.
For the Balearic president of the Spanish Association of Hotel Managers (AEDH), Alicia Reina, the war in Ukraine is “a new twist in the crisis” suffered by the sector. Reina assures that hoteliers have already felt its impact: “Tourist bookings are going to be delayed. People will wait a little longer to buy their vacations. April and May will be weak. And then we’ll see. Juan Miguel Costa, Ibizan director of Tourism, agrees that if the conflict is prolonged “sales will slow down” and it will affect all markets: “In this situation, people will be cautious when booking”, according to Costa.
It may be the case that hotels have 100% staff in April or May but have ridiculous occupancies
And this delay generates “a problem with the staff” in the hotels, warns Alicia Reina. “We have to call the staff very early in order to get them to stay. But to call early and not have good occupancies because people are waiting to book in view of what might happen with the war, is a new uncertainty, another added difficulty.” It may be the case that hotels with 100% staffing in April or May have ridiculous occupancies. But Alfonso Rojo, president of Pimeef, already warned on Monday of what could happen to those who postpone hiring staff: “They will have problems to fill their staff”.
The tourism sector, in general, “is desperate” because it cannot find workers, a problem it already suffered in 2021, points out an Ibizan tourism expert. “There is a lack of staff”, Reina confirms. We have to turn to the mainland and offer something decent, at least a few months of work and hire as soon as possible so that the hotel next door doesn’t take that manpower away from us.”
This season “will be a bit decaffeinated”. “Let’s see,” says Reina, “if the Government is a little merciful and delays the reforms they have planned for the Tourism Law. I don’t think this is the year of recovery”
For the full article, please visit Diario de Ibiza website here.