Juanma Costa: “Even if we have a good season, it doesn’t mean the bottom line will be”

Everything indicates that for this season the hotel occupation will be good in Formentera. What data do you handle?

The data handled by the associates and the directors of the board of the Hotel Association of Formentera are for sales, which at the moment are going very well. I would even say that slightly higher than 2019 and, if we continue at this rate, it is expected to be a good season. We must be cautious because of what is happening and everything that may come. Another thing will be the results at the end of the year, because although we may have a good season, perhaps the economic outcome will fall, possibly significantly, both because of the energy crisis and the supply crisis and also because of the personnel problems that may cause us to have a good season but that the results are not comparable to those of 2019.

What is the profile of the tourist who visits us, I ask this because not everyone can afford a vacation on the island?

There is a generalized change that we are seeing in recent years, it is logical. A privileged destination like Formentera, at the same time close to the whole of Europe, it is normal that if we maintain the environment and keep it in good condition, it becomes an important benchmark when it comes to choosing a vacation. This has meant that, although prices are rising, the restaurant offering is being renewed with higher quality products as well as accommodation, which is also a result of demand. This means that lately we have higher quality tourism. The Spanish market has also entered, which is a very good tourist who spends a lot of money. The trend in recent years is that more people are coming but not staying for as many days. This means that the amount they spend on the island is much higher and this means that extra-hotel activity is very busy.

Is the season being brought forward to Easter?

There are some people who are opening, but the bulk of everything will start in May. It is true that this year many people are going to open this Easter, and people are also looking forward to travelling, to see what the weather is like.

You mentioned it before, but what difficulties is the sector facing this season?

The first thing is what everyone is suffering from at home, the energy crisis, and this is going to cause significant increases in the price of energy and diesel that many hotels use for water. Then there are the supplies, care needs to be taken because it could get more serious. It is true that we have had a transport strike that should not affect us beyond the opening of our doors in May. With Covid and the war in Ukraine, everything has been mixed up and has caused a shortage of some products.

What products?

To give an example, and this is derived from the transport strike. There are people who are waiting to paint, we ourselves have ordered the paint and we do not know where it is, nor do we know where the product we use to cover cracks in the facades is. Things as simple as chlorine, if chlorine does not arrive for the swimming pools, we will not be able to use them. These are examples that I am magnifying but these small things can cause problems. In addition, all the materials for renovations are going up. The price of iron has doubled, wood has gone up by 50%, concrete, etc…. The price of construction is rising sharply and it affects the establishments that want to renovate their facilities.

A recurring problem is finding qualified personnel, according to the service. Is what is occurring with the staff affected by the lack of housing?

First, there is a lack of personnel for the tourist sector not only in the Balearic Islands, but throughout all of Spain. I do not know if it has been caused by the pandemic or not, but there used to be a greater demand. This means that we are all competing against each other, not only on Formentera, not only in the Balearic Islands, but everywhere. Formentera is competing with Madrid, with Andalusia and with other destinations to get the best staff. Then on the island the issue of housing to accommodate the staff is becoming very serious. A worker can no longer come on their own and rent an apartment, because at the current prices it takes their monthly salary. Now we employers try and offer housing to the worker, but we cannot find housing to rent either, and if we do find it, it is at an exorbitant price. There is no housing and in fact there are people who are looking like crazy, not only for hotels but also for restaurants, in short, for any service.

Haven’t they lost their way in this and have they forgotten that without housing there are no workers?

This is the main problem. I always argued that when the first subsidiary norms or the Tourism Supply Management Plans were drawn up, at that time, some tourist areas were established where their capacity was and services were delimited and residential areas, not tourist areas, were proposed, with a whole series of services for residents. Then there were the commercial zones and so on. Everything was structured and urban plans were made according to these criteria. his has now been broken on Formentera, the hotel establishments were made in es Pujols, in es Ca Marí, in the area of Maryland, that is to say that there were areas clearly intended for tourist use, the rest were residential areas. This has disappeared, now we have turned everything into a tourist area. It is true that in the historical nuclei [Sant Francesc, Sant Ferran and el Pilar de la Mola] tourist use is not allowed, only residential, but this has to be complied with. However, there are still many other sites that have been converted.

The tourist market has also incorporated the offer of tourist stays, houses or apartments for rent.

There has always been consensus and unanimity on Formentera. It is a very important and very favorable model for the island. It is a very loyal, high quality customer and that benefits many local families who are allowed to rent their homes with a series of conditions, but from this, to convert the whole island into an Airbnb there is a difference and I think it is not the way we have to go.

Yes, but how the problem be solved in the current moment?

Some establishments have a certain accommodation capacity for workers and this has goes back a long way. But the increase in quality and the refurbishments means more personnel that we are not able to cope with and we are scratching outside. In addition, the restaurant sector is providing a lot of work, it is incredible how it is growing. We all need to sit down seriously to establish clear rules and seek solutions to this problem, also the residents themselves who do not own a home.

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