Abel Matutes Prats: “Nightlife is fundamental for Ibiza”

Abel Matutes has just returned from lunch with Dominican Republic President Luis Rodolfo Abinader. In fact, he has just been allowed to eat the first course: “He is a good friend and a very excellent president, but Caribbean people are different when it comes to punctuality.” Matutes praised Abidaner’s attitude toward businessmen, particularly the amenities he provides, in a news conference this morning in Fitur [as of Thursday].

Is this also the case in Spain?

Unfortunately, no. There is less public-private engagement with the Spanish government in Spain. We are rarely questioned, and we are hardly taken into account. The Balearic Islands appear to be the polar opposite. And they share the same political sign.

There is dialogue and harmony with the government. There are other areas where we may not agree, but they have gotten closer and have encouraged tourism. They have a strong desire to save the industry and the economy. The government is doing well, as are other independent administrations of various political colors. The national government, on the other hand, has abandoned us.

The government is doing well, as are other independent administrations of various political colors. The national government, on the other hand, has abandoned us.

When does the season begin in Ibiza?

It will be determined by how quickly everything returns to normalcy. I’ve been such a lousy Nostradamus over the last year and a half that I’m afraid to say that what we’re witnessing is the end… But I hope it is. I don’t believe it will be the end of the coronavirus, but I believe it will be the end of treating it as a pandemic. If that’s the case, it’ll be a good season [in Ibiza], and it’ll start soon. We’re working on getting a number of hotels open before Easter. And even to try to bring the peak season, those of the openings, forward to the beginning of May. I am optimistic that the island will have a successful season.

Is it the entire plant or just a portion of it?

Part of it at Easter. Everything in May. We opened the entire offer in 2021. And, without a doubt, we will do the same in 2022. Even sooner than usual for the time of year.

How many employees did you retain at ERTE in 2021? Do you save all of them in 2022 or only a portion of them?

Unfortunately, some of them were at ERTE, in the central part, rather than in hotels. Those who were at hotels were there because they were under construction, such as the TRS Ibiza (a 5 star luxury hotel). We will not only not have workers in ERTE in 2022, but we will also have far more staff than we have ever had on the island. We will begin the season with a new five-star hotel that will require additional hotel workers.

Have you had trouble finding employees?

Yes. It already happened to us in the year 2021. I’m hoping it doesn’t happen again this year. It is due to the simple fact that we opened later than Andalusia last year. When we invited people to join, many were already at other hotels closer to their homes, even if the pay was lower. Because we will be opening early this year, I am certain that we will be able to re-employ a portion of the workers that we lost last summer. It was one of the most serious issues we faced.

When do you think we’ll be able to return to 2019 figures?

If everything goes as planned, by 2022.

Because we will be opening early this year, I am certain that we will be able to re-employ a portion of the workers that we lost last summer. It was one of the most serious issues we faced.

You are the most optimistic of the hoteliers and politicians I met at Fitur.

In our case, they will be even better than they were in 2019. BLESS Hotel Ibiza was released at the start of the season in 2019. It will be fully operational this 2022. TRS, a five-star hotel, will open quite soon. And, if the pandemic permits, the entire leisure sector, such as Ushuaïa, will have a very strong year, because people are eager to let off steam after two terrifying years. As a chain, we are already working with higher sales and profit statistics than in 2019. The same goes for Ibiza.

Is there enough room and clients on the island for so many luxury hotels? Two more will open on the Vara de Rey promenade this summer, and you will open one in Cala Gració.

Yes.

You mentioned it when Ushuaïa first opened, and no one believed you. Is there still room for further luxury?

There is still space. Luxury is usually enhanced. In Madrid, the BLESS wanted to be the best hotel in town, competing with the Villamagna. There are now the Four Seasons and the Mandarin, and the Villamagna has undergone a transformation that puts it in a different category. It could be horrible news for me, but it isn’t. Madrid has become a city of luxury tourism as a result of these openings. When I was on my own in Ibiza, I was concerned about my ability to change the mentality. I bet on luxury tourism because, at the time, Ibiza’s only options were maritime tourism and villas, not hotels. The fact that more hotels are developing in this manner promotes the Ibiza brand and the island’s desire for luxury visitors.

What does the island need in terms of premium tourism?

In the summer, we have one major complaint: a lack of retail tourism. Madrid is highly powerful in this area. We are attempting to make amends by constructing a shopping gallery with major brands on Hard Rock property. Part of that demand will be met as a result of this. We also need to extend the season in the winter. This, I believe, could be solved (and it sometimes doesn’t sound nice to say it, but I say what I think, even if it’s not always good) with a complementary offer for MICE, or congress tourism, to travel to the island at that time of year. And the proposition in question is none other than golf courses. There is a taboo in this regard that is relatively simple to break. It has been vilified. And, for the record, I don’t own a single golf course. The island already has a great gastronomy tourism, it has invested in that sector, and it is already a valuable asset in the summer. If we could keep some of that tourist going in the winter, we could keep some of that gastronomic tourism going as well.

The Ses Variades urbanization project, which is still a massive dog shitter, was also criticized at the time.

It was politicized, despite the fact that what was supposed to happen there would have allowed Sant Antoni to be repositioned. It still needs to be done, in my opinion. The required cessions were made, and the land has no environmental value. Perhaps if we continue to allow the dogs to poo there, a tree will develop eventually, although there are none at the moment. I am confident that it will grow for the betterment of the community. Everything we (the Matutes Group) sought to undertake was politicized at one point. I believe we have entered a new period. We must engage calmly with the authorities to see whether what may be produced there is in the best interests of the island and its inhabitants.

The island already has a great gastronomy tourism, it has invested in that sector, and it is already a valuable asset in the summer. If we could keep some of that tourist going in the winter, we could keep some of that gastronomic tourism going as well.

What changes do you believe the health crisis has brought about in the tourism industry?

Many. We did not emerge from this disaster stronger. That’s nonsense. Neither in our instance nor, I believe, in any other. We learned more as a result of our experience. Trends have accelerated significantly. We had to exist almost entirely without tour operations, and we were able to do so by strengthening our relationship with direct clients. We have made a virtue out of necessity during the last two years. In part, I hope that 2022 will be better than 2019 because of all that has transpired and made us better, as well as allowing a process that we hoped to execute in several years to be done in a year and a half out of pure prudence. And 2022 will not be any better in terms of tourist arrivals: we must stop calculating the number of tourists that come; instead, we must count what they leave behind in the destination, the economic impact they leave behind.

In 2021, you will have boosted direct sales by 24%. I’m guessing they want to improve that percentage so they don’t have to rely on online agencies (OTAs).

If you had asked me two years ago if we would be able to sell 24% directly, I would have told you that it would be a chimera in 2021, possibly in four years. We set a goal a few years ago of obtaining 30% direct sales by 2030. Following the pandemic, that proportion fell short. The brand is well-known and sells well, and there is a multiplier effect with Palladium Rewards, the company’s loyalty program, whose affiliated customers have created 67% of direct channel sales volume, which will account for the majority of sales in 2021. And we’ve only been in the loyalty program for a year. As a result, we believe we will be well above our target by 2030.

What do you think is causing the growth in domestic tourism in 2021?

Domestic tourism is good tourism since it pays well and it is better than others because they prefer to visit the area; however, I have no idea what is going on in the hotel. They didn’t arrive in greater numbers because there was a gap (from other marketplaces) and they were sneaking in. What occurred was that many people were terrified to fly, thus shipping had a fantastic year. Furthermore, and maybe more importantly, domestic tourism could not travel to many other distant sites in America, and there were several countries with restrictions in Europe. Even those who were not particularly terrified of flying wanted to spend no more than one hour in the air. As a result, the local market turned inward. This summer in Andalusia, I’ve never seen Marbella and Cadiz like this. If Ibiza saved the season in 2021, it was a historic season for those two destinations. Part of that tourism will undoubtedly be lost by 2022 because it will no longer be as difficult to go to more distant locations. We’re hoping to lose as few people as possible.

“Bed elevators are already available at the five-star hotels that we are building. We have a Top Employer certification that almost no one else does.”

Do you support the new tourist law?

So far, contact with the Balearic Government has always been open and fluid. I am confident that they will be able to combine a rise in sector production with an improvement in worker quality of life; otherwise, it will be feast today, famine tomorrow. There are aspects of this rule that we were already performing long before it was enacted, such as the four brushstrokes mentioned. For example, bed elevators are already available in the five-star hotels that we are now developing. We have a Top Employer certification that almost no one else does. For us, our collaborators, our employees, are the first impression that our consumers get of us, and if we want them to feel comfortable, they must sense that the worker is comfortable with us. That is critical. This is very much in line with what the government has said. Their ideals are similar to those we currently have in place at the organization. We are working on a massive initiative to electrify all of the roofs in Platja d’en Bossa in order to self-generate as much as possible. We struggle for self-sufficiency wherever we can. For example, we possess Jamaica’s largest photovoltaic facility. Other massive ones can be found in Mexico and the Dominican Republic.

Where do you disagree with this law?

There are a few things that concern me a little more. The law can sound a little interventionist at times. I am one of those who believe that it is preferable to develop rules that provide incentives in order for its application to be economically efficient for businessmen. As there has always been open communication with the Balearic Government, I am confident that before passing this law, they will consult with all parties involved, including unions and hoteliers, to ensure that it does not reduce, but rather increases, the competitiveness of the Balearic hotel market.

What function should nightclubs play in the tourism offering in Ibiza? Are they required, or, as some argue, are they unnecessary?

They are more than just necessary; they are fundamental. Any tourist site aspires to be a leader in something while also being unique. Ibiza is a leader and a standout in the musical leisure offer, both during the day and at night. Unfortunately, we are a little cainite in Spain. When you leave the island and the country, everyone, absolutely everyone, expresses envy of Ibiza’s offer and positioning as a destination. Half of the world tries, but fails, to mimic us. It’s ludicrous to think that Ibiza’s leisure offer isn’t important for the island’s future. Of course, there are some things that must be kept under control. Not everything may be left to free choice, for example, because it can have an impact on the quality of the offer. But anyone who understands anything about tourism would tell you that nightlife isn’t a big deal on the island.

We had to close everything down overnight. We were able to close fast. And we did it well, and we were even encouraged by how well we did it. But the worst times were when I understood that this was not a one-month situation.