Balearic summer cash boost for tourist industry

Sales by tourism companies in the Balearics rose by 4.8 per cent this summer compared with the same period in 2025, whilst hotel revenue per available room (RevPAR) increased by 7.7 per cent, according to the latest tourism outlook report from Exceltur.

The third-quarter figures place the Balearic Islands amongst the holiday destinations on the Mediterranean coast and islands that have performed well, although with more moderate sales growth than some regions in the north and the interior of the mainland.

Sales rose in the Balearics, whilst the largest increases were recorded in Extremadura (14.7 per cent), Cantabria (12.4 per cent), the Basque Country (9.9 per cent), Galicia (8.7 per cent) and Aragon (7.3 per cent).

Tourism growth through value

The report by Exceltur, a Spanish association bringing together major companies in the tourism sector, notes that in the most established destinations, high occupancy levels limit the scope for growth through increased volume; consequently, the renewal and repositioning of the offering towards products with higher added value are gaining prominence.

This trend is reflected in the Balearic Islands, where RevPAR (the indicator measuring how much money a hotel earns on average per available room, whether occupied or not) rose by 7.7 per cent between June and August, compared with 8.3 per cent in the Valencian Community and 7.1 per cent in Andalusia.

Destinations in the Balearic Islands achieved an average RevPAR of 182.5 euros during the summer, 7.7 per cent more than a year earlier, and ranked among the regions with the highest hotel revenues. Ibiza and Formentera topped the list of destinations analysed by Exceltur, with 225.1 euros per available room between June and August, an increase of 9.5 per cent.

Island performance breakdown

This increase occurred despite total demand falling by 2.4 per cent, with a 2.8 per cent drop in foreign demand and a 0.7 per cent rise in domestic demand. Mallorca achieved a RevPAR of 170.1 euros, up 9.2 per cent, although demand fell by 0.8 per cent. In Menorca, revenue per available room stood at 186.7 euros, an increase of 1 per cent, whilst demand fell by 2.8 per cent.

Exceltur highlights a pattern across the main Balearic destinations characterised by revenue growth driven more by the value generated than by an increase in visitor numbers. By comparison, the Costa del Sol recorded a RevPAR of 175.4 euros, up 9.7 per cent; Fuerteventura reached 111.5 euros, up 8.3 per cent; Tenerife, 119.9 euros, up 5.2 per cent; and Gran Canaria, 117.3 euros, down 3.5 per cent.

Outlook for the sector

Across Spain as a whole, tourism GDP grew by 3.5 per cent year-on-year during the third quarter, compared with the 2.6 per cent estimated for the economy as a whole, and tourism accounted for 21.1 per cent of the increase in GDP during the summer months. Sales by Spanish tourism companies rose by 4.1 per cent, whilst oil-related costs increased by 7.3 per cent, energy costs by 6.9 per cent and other supplies by 6.2 per cent.

For the fourth quarter of the year, tourism businesses in the Balearics expect their sales to grow by 1.1 per cent, a sharp slowdown compared with the 4.8 per cent recorded in the summer and below the 3 per cent expected in the Canary Islands.

For Spain as a whole, Exceltur expects sales growth of 2.8 per cent in the fourth quarter and maintains its forecast that tourism GDP will rise by 2.7 per cent in 2026, reaching 226,995 million euros, equivalent to 12.9 per cent of the Spanish economy – a record high in its historical series. The organisation warns of downside risks stemming from geopolitical uncertainty, energy and transport prices, and the impact of rising prices and interest rates on households and businesses.