News June 25th

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 Dc-10 the club which has never been far from the news since its opening, has once again been instructed to shut.  The order comes from authorities of the Central Government on the island, headed by their representative, Sofia Hernanz.
  It was her predecessor, Jose Manuel Bar, who started the process back in September 2005, when he accused the club of flagrantly allowing the consumption of drugs on its premises.  The allegation followed two denuncias in September 2005.  Due to the fact a similar complaint had been made by the Guardia Civil in May of the same year, a €6,000 fine was imposed, in addition to the commencement of a judicial process, which ended last year with the club being ordered to shut for two months.
  However, lawyers working for DC-10 ensured the decision was soon overturned and the club opened as normal for the rest of the season.  Now, the denuncias made back in 2005 look set to ensure the premises will be closing its doors for most of the season.
  The owners were informed of the order last week and had until Monday to carry out the decree, after which they were to inform the Guardia Civil.  However, lawyers for the club claimed drug controls were stricter than ever and they had increased the number of cameras in the establishment.   
  The Councillor for the Interior at the Town Hall of San Jose, Paquita Ribas, celebrated the decision by claiming it was “a weight off her mind”.  She said the club had been consistently breaking the law since it first opened adding that the premises did not even have a licence to open as a club, and only possessed a permit to operate as a café-concierto, with a capacity for 67 people.  This was constantly abused and crowds of over 3,000 could regularly be found inside.
  The spokeswoman for the Island Council, Pilar Costa, said they respected the decision of the judge and hoped the ruling acted as a warning to all businesses that while the disco scene was important to the island, illegal activities would not be tolerated.     

AROUND THE ISLAND
Possible Arson Attack
Investigations continued throughout the week into the blaze which resulted in 34 trucks being damaged, most beyond repair, close to San Rafael.  The possibility it was caused deliberately grew, after a statement from the Interior Minister in Madrid, Alfredo Perez Rubalcaba, who claimed the fire was caused due to an internal dispute within the company, and had no connection with the transport strike which ended this week.
Officers on the island were quick to point out that nothing had yet been ruled out, and said they were currently interviewing all of those with access to the yard. 
The owner of the business, RYR SL, Antonio Torres, said the damage was estimated to be around the €4 million mark, although the final valuation by the loss adjustors had yet to be completed.  He said he had always treated his employees fairly and could not think of anyone who would want to do this to his business.
The fire began close to the centre of San Rafael at around 10.45p.m. on Saturday night.  It took 12 firemen a total of five hours to control the blaze, which caused a number of explosions to tyres and petrol tanks.  

Price Rises
The high prices seen in supermarkets and market stalls over the last week due to the transport strikes look set to continue for the foreseeable future, at least.  As the island began to return to some degree of normality, shopkeepers warned customers that fresh fruit had increased in price due to a lack of supply. 
Strawberries headed the long list, having doubled in price over the last seven days.  Their particular situation has also not been helped over recent weeks by the rains of May and early June which have all but wiped out the island's crop.  Iceburg lettuces and red peppers have also shot up in price, and are around 30 per cent more expensive than normal. 
Most shopkeepers said that for the time being they would try and reduce margins and the end price would vary only slightly.  However, if the increases continued over a long period of time, price hikes were certain. 
The vice-president of Pimeef (the association of small and medium-sized businesses), Alfonso Rojo, called for calm and predicted the situation would return to normal within a few weeks.  He said the rises had been caused by the events over the last few weeks and that he fully expected prices to be reduced to their pre-strike levels sometime in July.   
There were similar complaints from the fish-sellers in the capital's main market who revealed prices had also risen sharply since the end of the strike, especially the more popular imported species like sardines and monkfish.   
The president of the Island Council, Xico Tarres, joined the debate towards the end of the week, claiming a monopoly had long since been established in some business sectors which had ensured price increases.  He added that the fact Ibiza was an island no longer had such an important part to play in the problem.  A difference in price between Mallorca and Ibiza of around 5 per cent could be explainable, but Tarres said the current gap, which stands between 15-20 per cent, is incomprehensible.  Added to this the island was around 10-15 per cent more expensive than in Menorca, a situation which was again unwarranted.
Tarres warned he was ready to make changes to Commercial Legislation within the Balearics, which governs shop sizes and other aspects of competition, promising wholesale changes which he hopes will open up the market and make the island a cheaper place.  The Island Council and Balearic Government have six months to introduce new regulations, which should open up the market in Europe and comply with the Bolkestein directive which is to introduce free-trading across the continent.  

Power Failure Delays
A power failure at the airport on Monday caused significant delays in a number of flights, mostly to the mainland.  The incident was caused after a digger working at the final roundabout at the entrance to the airport accidentally cut one of the main cables feeding the installation.  All of the check-in desks were affected which meant that for several hours boarding passes had to be written out by hand.  The Airport Authorities said that a total of just seven planes were affected, with the heaviest delays to two Air Berlin flights which both took off nearly three hours behind schedule.    

Water Power Demands
Pleas by the mayors of the five municipalities in Ibiza, in addition to the president of the Island Council, to transfer all of the responsibilities involving water have been firmly knocked back by the Balearic Government.  The decision came after the mayors meeting on Tuesday, which took place in San Antonio.  The president of the Island Council, Xico Tarres, said it was now time for a transfer of power from Mallorca, as the water needs of the island were not being adequately looked after, as the requirements of each island were very different. 
However, their demands were rejected by the Minister for the Environment, Miquel Angel Grimalt, who said the plans currently underway and in the pipeline proved his department was doing a good job.  He then claimed the authorities should concentrate on their own work, before criticising that of others, clearly referring to the fiasco of the Ibiza Town water purifier which has remained up in the air for over a year now, after an appropriate piece of land could not be found. 
Grimalt claimed that, historically, the island had always had a problem with water purifiers but it was his administration which was attempting to solve these deficiencies.  He added that the purifiers in San Antonio and Playa den Bossa were currently being remodelled, and that the future installations in both Cala Tarida and Santa Eulalia would get underway next year.   
However, he ended by saying he was open to discussion about the transfer of power, and that he would meet with the island president over the coming months. He did, however, rule out any changes during the rest of his three years in power. 
The appeal by the different municipalities came as Jose Sala, mayor of San Antonio, announced an increase of 12 per cent in the price of water.  The rise was agreed last month by the Balearic Government, who reasoned that there had not been a change in price for several years, whilst vast improvements had been made to the purifier and distribution system.  A further 4 per cent increase was rejected.

Temporary Licences
On Tuesday the Island Council confirmed that a total of 21 temporary taxi licences have been issued, all of which are due to be begin in July.
The announcement towards the end of last year by the councillor for transport, Albert Prats, that he would be issuing 150 temporary licences to help cope with the busier months, caused outrage amongst the greedy licence holders, after he confirmed they would only be able to apply for half of the number available.  This led to a series of strikes, which were eventually called off after they realised Prats was not going to budge.
The Taxi Association in Ibiza Town claimed none of their licence holders would be bidding for the permits, which has left the targets set by Prats somewhat reduced.  However, 21 of the proposed 43 licences for the first stage, which will run from the beginning of July through to the end of August, have now been granted, 15 to drivers, with 6 going to licence holders based in San Jose.  The remaining 23 will now be offered to a waiting list of applicants from across the island.     
A further 42 licences will be issued next month which is set to cover the months of August and September.

Minister's Claims
The minister for development, Magdalena Alvaerz, hinted last week the Government may soon extend the resident's discount, currently received by all EU-members, to citizens from outside the Union.  The minister however made it clear any such moves would very much depend on the budget available.
At the moment any person resident in the Balearics, Canaries, Ceuta and Melilla, and originally from the EU is able to receive half-price travel to all Spanish destinations.  At present this is still unavailable to non-EU residents, who for the time being will continue to pay full price. 

IBIZA TOWN
Central Reforms
Vicent Ferrer, the councillor for commerce at the Town Hall in Ibiza, revealed on Thursday that his administration was in the process of creating a Strategic Plan which they hoped would revitalise the commercial area of town and help modernise many of the shops.  He claimed that although many were small businesses, employing on average just two or three staff members, the sheer volume of shops meant the sector was one of the leading employers within the municipality. 
Ferrer said the strategic plan was needed to better commercialise the area, and prepare for the invasion of bigger stores, once the Bolkestein directives are introduced in 2009.  He said that his idea at the moment was to create an American style open-air shopping mall where people could walk through the centre of town and shop in the various different stores available.  He added, however, that to create such an environment he would need the help of all of the shops to launch a marketing campaign and offers he hoped would promote interest in the area.   He added that most of the capital's streets were now pedestrianised, and hoped the idea of creating one big shopping circuit across the capital would prove popular with local retailers.

Luxury Cruising
The yacht, Christina O, which has down the years carried some of the most celebrated names in history, spent two days off the coast of Ibiza last week.  The famous luxury vessel is one of the world's longest private yachts, measuring 99 metres.  Originally a Canadian River class frigate called HMCS Stormont, she was purchased by the Greek shipping tycoon, Aristotle Onassis, for just $34,000 in 1954.  He then proceeded to spend $4 million on the vessel to convert her into a luxurious yacht, and renamed her Christina after his daughter.
When Aristotle Onassis died in 1975, he left the yacht to his daughter, who gave her to the American government for use as a presidential yacht.  However, she was left to rot and during the next twenty years, several attempts to sell the boat failed until eventually she was sold to the Greek ship owner, John Paul Papanicolaou, who had sailed on her as a child.  He changed her name to Christina O and undertook a massive refurbishment.  He then began chartering her out.  However, before you call to make a reservation, it might be worth noting that she costs a cool €50,000 per day!
Celebrities who have walked the decks include JFK, Marilyn Monroe, Onassis's wife Jackie, as well as his mistress Maria Callas, the crooner Frank Sinatra, and Eva Peron.  Legend also has it that the first meeting between Winston Churchill and JFK took place on board.

Crematorium Plans
The Town Hall of Ibiza announced on Friday plans to build the first crematorium on the island.  The councillor for public health, Marivi Mengual, said work would be completed in three years time.  She added that it was a service which was more in demand every year, and would avoid bodies having to be sent to Mallorca. 
The installation is to be located in the capital at the roundabout of San Antonio and Santa Eulalia, close to the CLH deposits.  The work will include the building of a car park and cafeteria.  

SAN ANTONIO
More Cops
San Antonio will have a total of 60 police officers this summer, 20 more than last year.  The councillor in charge, Jose Ramon Serra Pilot, commented that the police were there to ensure peace of mind to the general public and be of help wherever possible.  He added that he was confident that with so many officers they would be able to satisfactorily cover the entire municipality, including the two major clubs close to San Rafael.  

Ibiza Rocks?
On Friday the Town Hall of San Antonio announced it would not be permitting the promoters of Ibiza Rocks use of the hippodrome in San Rafael for their weekly concerts.  The news comes despite an agreement between the company and the Island Council for 13 concerts to be held at the venue throughout the summer. 
The Councillor, Jose Ramon Serra Pilot, announced that although the hippodrome was the property of the Council, the Town Hall had the ultimate say in granting the permits.  He added that although the concert held at the venue last Tuesday was finished by 11p.m. sound checks took place throughout the day, and the event provoked a number of complaints from neighbours close to the area, something Pilot is not prepared to put up with on a permanent basis.  He said permission would be given for two or three more concerts during the summer, but that other locations needed to be used including the Conference Centre at the entrance to the capital. 
In other matters the councillor revealed the police had so far fined a total of 25 establishments for the illegal use of PR's.  He added that his administration was determined to clamp down on this illegal form of advertising, which he said gave the municipality, and in particular the West End, a bad name. 
This form of advertising is not illegal, but PR's need to be properly registered and can only be employed by those businesses who already have seven registered employees.       

SAN JOSE
Water Supply
The mobile water purifiers in sa Carroca and San Jordi will be switched on this week to help ensure consumption is met over the summer months.  The mayor, Josep Mari Ribas Agustinet, said his team would be monitoring the situation to see if water could also be provided to at least some of the Playa den Bossa area. 
The machines were first installed by the previous administration, but were turned off when Agustinet took charge because they were being run from diesel-powered generators.  This minor problem has been rectified with the building of a small generator on land close to the site. 
The two machines produce a total of 1,200 cubic tonnes of water everyday, and look set to be in operation for the next two years until the new connection has been made to the purifier in sa Carroca, which is set to supply water to the south of the municipality.   

Bossa Improvements
On Friday the Island Council announced a €30 million facelift of Playa den Bossa.  Joan Serra Mayans said the money would come from the €2,800 million received by the Balearics for redevelopment over the next ten years.  He added that there would now be a period of consultancy with the two Town Halls (Playa den Bossa spreads across Ibiza Town and San Jose), and local businesses to figure out the best way forward. 
Mayans revealed he was unsure at this stage if the investment would include the ses Figueretas area, where a boardwalk is planned.
The investment will be a much needed shot in the arm for an area with huge potential, which has suffered huge degeneration over the last few years.  Serra Mayans promised initial plans for the project would be available to view by the end of the year.
The president of the Hotel Federation, Roberto Hortensius, said the plans were great news for the area and he applauded the initiative.  He added that a consensus needed to be reached between the two Town Halls to ensure clients did not notice a difference when strolling from one municipality to another. 
He added that he still believed a golf course would be a huge bonus to the area and bring in much needed business, and it was a shame the project had been stopped due to political reasons.  He added the construction of a marina in es Viver would also be beneficial to the zone and raise the level of clientele. 

Beached Boat Taken Away
The Town Hall of San Jose decided to take charge of the situation and on Saturday ordered the removal of a boat which has stood beached close to the shore in Playa den Bossa for the last 12 days.  The administration took responsibility after a dispute between the Coastal Authorities, the Environmental Department and the owner of the vessel.
The work began first thing in the morning and continued for four hours, longer than had at first been estimated, after the boat broke into several pieces when picked up due to the substantial cracks caused when it beached in rough weather, with two crew members on board. 
The Town Hall finally decided to take matters into their own hands after agreement could not be reached, and the boat began to become dangerous to bathers.  

Stairway to Tarida
The new steps leading down to the beach at Cala Tarida were officially opened on Saturday.  The project, which cost a total of €18,000, was ordered after complaints from neighbours and businesses in the area, tired by the number of accidents on the previous stairs.

SANTA EULALIA
Pipe Change
The Town Hall of Santa Eulalia last week announced an agreement with Aqualia which will see the substitution of the main underwater pipe in calle Sant Jaume.  The work will be carried out in two stages to avoid too much inconvenience, and cost a total of €818,303.  It will involve replacing the existing tube with a much bigger one to ensure no more flooding in the area during periods of heavy rain. 
The first stage will take place from the water purifier in es Canar up to the beginning of the road.  Once this has been completed, the second phase will get underway which will involve the remainder of the road. 

Landslide Prevention
The Coastal Authorities last week confirmed they had been in contact with the Town Hall of Santa Eulalia and that both would attempt to make the area of Aguas Blancas safer to the public.  The beach, which is close to San Carlos was the scene of a mini-landslide the previous week which sent a shower of rocks on to the sun-bathers below.  Two of those injured had to be hospitalised, one receiving six stitches in a head wound, whilst the other fractured their upper arm.  Both of the bathers complained about the dangerous nature of the area and that there were no signs warning of the dangers.
The Coastal Authority was quick to point out that landslides in Aguas Blancas were an extremely rare occurrence. They would, however be installing signs warning of the most dangerous parts, as well as having a general clean up of the area. 

Illegal Buildings
Neighbours in the Can Planes area have made an official complaint to the Town Hall of Santa Eulalia about two illegal houses they say are being built in the area.  The first is an 800 m2 property close to the Hermanos Parrot quarry.  The document claims the permission to build on this particular piece of land has expired and that the actual building being erected is in a totally different place.  Finally, they add that the zone is now protected under new legislation introduced this year by the Island Council. 
The second complaint concerns the extension to a 109 m2 house which has had 491 m2 added to it.  Neighbours maintain even the original building is illegal, criticizing that no permit has been granted for the extension.

FORMENTERA
Chief Stabbed
The head of police on the island was recovering in hospital after being stabbed in an incident in a bar in the early hours of Sunday morning, it was reported on Monday.  Exact details are still hazy but witnesses revealed the chief of police, Juan Moreno, was sitting at the bar with a fellow officer, both dressed in civilian clothing.  At around 5.30am his compatriot was approached by an Argentine man who said he was going to stab him.
It was at this point that Moreno intervened and told the man he could not go around threatening people in public.  Suddenly the Argentine pulled out a knife and stabbed the chief in the leg, missing an artery by centimetres.  The victim also received cuts to his hands in his attempts to defend himself. 
Moreno was rushed to hospital where he underwent emergency surgery.  Medical staff later revealed he was comfortable.
The Argentine man was wrestled to the ground by the other officer and taken to the local police station where he then suffered a heart-attack and also had to be taken to the local hospital.  It is still not clear why the man became so irate or what started the argument. 

Formentera Meeting
Madrid's representative on the islands, Sofia Hernanz, met with Pep Mayans in Formentera last week to talk about some of the burning issues affecting the island.  Amongst just some of the topics broached by Mayans, who is the island's representative in the Balearic Parliament, was the treatment of immigrants who have to travel to Ibiza in order to arrange their papers including residency cards.  He said methods were needed to make the entire process simpler.
During the meeting Hernanz revealed the final touches were being put on the plans for a new building for the Guardia Civil on the island.  She hoped the project, which would cost €2.5 million, could be finished by 2010 and be able to house up to 25 officers and their families. 
Finally, Mayans asked for the minister's help in trying to make the Denia-Formentera route one of public interest, a move which would ensure its continuation at a more economic price.  

CRIME & INCIDENTS
Hotel Worker Arrested
A receptionist in a centrally located San Antonio hotel was arrested on Monday accused of the rape of a client on Saturday night.  According to the 19 year old victim's account, she arrived back at her hotel and went to reception to ask for her key.  She was then taken by the receptionist to a room which was not hers.  She claims the man then pushed her into the room and forced himself on her.
The woman claimed she had been out with friends that particular night, but that she was not drunk.  She was taken to Can Misses where sources confirmed she had injuries consistent with being raped.
The judge hearing the case ordered the immediate arrest of the man, who was being held in custody while further investigations were completed and video footage from the hotel could be studied.

Moroccan Man Arrested
The driver involved in the head-on collision which led to the death of a 17 year old youth has been arrested.  The accident occurred on Sunday night on the es-Canar-Santa Eulalia road.  For reasons which are still unclear, the BMW 316 driven by the now detained Moroccan man, veered into the opposite lane colliding head-on with the victim who was riding his moped at the time.  The 17 year old was thrown into the air, landing heavily on the tarmac.  Although he was wearing a helmet, it was dislodged due to the considerable impact.  Emergency services were quickly on the scene, but their attempts to revive the body proved fruitless. 
The driver and his passenger fled from the scene of the accident, leaving the car, which had only recently been bought, by the side of the road unable to function due to the heavy impact.  Police set up roadblocks across the municipality, and eventually arrested the accused man the following day in Cala Pada.  Investigators later revealed the 28 year old man did not have the appropriate papers to be in the country, and was here illegally.  The passenger in the car, a German boy believed to be under 18 years of age, has also been located.  The driver was being detained accused of manslaughter by reckless driving, and fleeing the scene of an accident.  In his initial statement he claimed he took off because he did not have the necessary papers to remain in the country, and became nervous.         
Several days later two girls had a lucky escape when the moped they were riding collided with a van coming in the opposite direction.  The initial investigation suggested the driver of the moped had taken a bend too quickly and invaded the opposite lane, colliding side-on into the van, whose driver did not have time to react.  The accident occurred at 11.15a.m. as the two girls were heading towards San Mateu, close to Puig den Valls.  They were taken to the local hospital, the driver while still unconscious.  However both were treated and said to be making a good recovery.

Armed Nut
A crazed German man had to be detained at gunpoint on Friday close to the hippodrome in San Rafael.  Officers were made aware of a problem by the owner of a bar where the German had been drinking.  Having drunk a bottle of whisky in five minutes, the barman refused to serve the man a second.  It was at this moment that he pulled out a 30cm knife and began threatening the staff member and other clients in the bar at the time.  Fortunately, police arrived just moments later but as they tried to calm the man, he became more irate and escaped from the bar, pushing an elderly gentleman to the floor as he was leaving. 
The man took refuge in a nearby house, with the owner unaware of the criminal's presence.  She became startled when she saw officers approaching at speed.  They soon had the individual cornered inside the property and, after a struggle, eventually managed to arrest the man at gunpoint. 
As well as the knife, officers found a truncheon and a medieval mace with spiked ball attached to a chain, also commonly known as a morning star.  The detainee was taken into custody where officers were waiting for him to sober up before taking a statement.  

Vandal Fined
A British tourist was arrested in the early hours of Friday morning for smashing the front shop window of a drugstore in the centre of San Antonio.  The man was seen by two neighbours who restrained the delinquent until officers arrived.  He was given a speedy trial in which he was ordered to pay €1,900 to the retailer whose shop was affected, as well as a fine.

Man detained
Last week The Ibiza Sun reported the violent assault on a 58 year old English resident, as he walked in the early hours of the morning on Calle de la Virgen, in Ibiza Old Town. He was left unconscious in the assault, and his laptop computer was stolen. On Tuesday, this week, the Policia National arrested a man in connection with this incident, and recovered the stolen computer, which has been returned to the victim.

Victim Loses Fight
The 21-year old Romanian man who was knocked down whilst crossing Avenida Sant Joan, close to the centre of town, has died after seven days in intensive care.  Sources from the hospital revealed the victim had stayed in a deep coma since his admission, and finally lost his fight on Thursday. 
It is believed the man had been purchasing a sack of cement in the Fita DIY store before attempting to cross the four-lane road.  He was run-over by an Audi A2, and becomes the eighth fatality on the roads of Ibiza and Formentera during 2008.

Rolex Robbery
Police believe they have cracked one of the biggest organised crime rings on the island, after the arrest of seven Italians last week.  All are supposed members of the Rolex gang, which zero in on wealthy tourists wearing expensive jewellery and watches.  Investigators revealed five of the men were arrested at the airport, while the other two were detained whilst in their hotel in Cala de Bou. 
The arrests follow the violent robbery of a tourist, close to marina Botafoc.  The man was walking alone close to the harbour area when he was approached from behind by an unmasked man.  He proceeded to rip the man's Rolex watch from his wrist, before escaping on a nearby moped driven by an accomplice.
These types of robberies are all too commonplace on the island during the summer months, and were branded the Rolex Robberies last year by local press.
The modus operandi is that the criminals (they nearly always work in pairs) follow an unsuspecting victim until the moment is right.  He is approached from behind and his watch is wrenched from his wrist using all the violence necessary.  The criminal then meets up with his partner who races them both to safety.  The watch is quickly passed to a third party who sends it off the island within hours. 
Police last year made several arrests but until now had failed to get to the heart of the gangs, who are on the island from Naples and Calabria in Southern Italy.

NEWS FROM THE MAINLAND
Mayor Arrested
The Mayor of Estepona, Antonio Barrientos, was one of 25 people to be arrested on Tuesday after a series of raids by fraud police on homes and offices on the mainland.  He was booed by members of the public as he was taken by police to the courthouse, where he was ordered to remain in prison while a trial date was set.  It was here he announced his resignation from public office.
Police sources indicate that the operation comes following an investigation into allegedly irregular financing in the Town Hall.
A number of properties were searched in the raids including the administration's town planning department, as well as the tax offices and the Mayor's home in the Bahía Azul urbanisation.  Officers later revealed that those arrested will face charges of influence peddling, perversion of the course of justice, and money laundering.
The arrests are nothing new to an area where the misuse of power is commonplace, and has seen public figures such as Julian Munoz and Jesus Gill (now deceased) all arrested in recent years for similar scandals.

FINANCIAL NEWS
Salary Differences
Despite a sense of continued progress toward gender equality in the workplace, an independent studied carried out within the Balearics has confirmed that the problem is still alive and kicking.  According to the 1st Plan for Equal Opportunities, women are earning around 21 per cent less than their male counterparts, a gap which is similar across all of the different wage brackets. 
Those women in the upper end of the wage category are currently earning up to €7,000 less than men, whilst the difference is still relatively acute amongst the lowest wage earners, with women earning €12,458 whilst men in similar positions were taking home €16,029. 
The differences can be explained in a number of ways, and include the fact that women in the workforce are less likely to work a full-time schedule and are likelier to leave the labour force for long periods.  Men with children also appear to get a boost of two per cent in earnings, whereas women with children earn about 2.5 per cent less than women without children - information particularly useful when considering that in 2006, 124 new mothers were housewives, whereas 128 worked in the service sector.  None held a management position, whilst there were five new fathers who did. 
The gap is still significant despite information from the Balearic University which shows that there are currently far more women undertaking further education than men.  In the municipality of Ibiza, for example, 60.6 per cent of the total number of people in higher education are female, further evidence that the salary gap is set to fall over the next few years.    

Hard Times
A survey carried out in conjunction with the Hotel Federation by PricewaterhouseCoopers (PwC) has shown that the majority of hoteliers on the island expect to make less profit in 2008 than the previous year.
Of the businesses surveyed, just 23 per cent said their turnover would be less than last year, however rising costs look set to take a larger chunk of the profits.  Fifty-seven per cent of hoteliers said their costs were set to increase this year, whilst 36 per cent claimed they would be similar to last year, whilst just seven per cent said they hoped to lower their outgoings. 
Hotel prices are set to increase by an average of two per cent this year, a figure which will not cover the rate of inflation, currently standing at 4.2 per cent, mainly in foodstuffs and labour.  However, the chances of an increase in price are unrealistic on an island facing stiff competition from other European resorts and those outside the Euro-zone, which are at the moment proving far more attractive to tourists.  The situation has also not been helped by the weak sterling, and a substantial reduction in the price of holidaying within the UK. 
Finally, the study revealed that although holidays would not, for the time being, be sacrificed, the average spend per holiday would decrease, as would the length of stay. 
The conclusions of the survey were that, for the first time, tourist hotels had become less financially rewarding and been superseded for the first time by city hotels in the profitability stakes.      

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