Panic is spreading within the restaurant sector on Majorca after a generalised revenue drop of around 20% during the first quarter of the year has been recorded. The president of the restaurant association Restauración CAEB, Juan Miguel Ferrer, has warned that the data shows a clear indicator of economic alarm as "the restaurant industry is Mallorca’s leading economic barometer."

According to data provided by Restauración CAEB, the revenue drop is between 10% and even close to 20% in areas including Puerto Pollensa and the Playa de Palma on the major Spanish tourist island. In a statement, Ferrer said, "If spending in our sector decreases, it will inevitably affect the entire local economy." The research reveals a general decline in average spending per customer, both domestic and foreign.

The association said the decline in customer spending is particularly striking considering that the Balearics broke tourist records in the first quarter of 2025. Between January and March, a total of 810,045 international tourists visited the archipelago—an increase of 3.6% compared to the same period last year, Euro Weekly News reported.

"In terms of spending, we are not seeing an increase, but quite the opposite, a decrease. We have more people spending less, it seems," Ferrer added.

That being said, some areas, including Portixol and Plaza de España in Palma, have managed to maintain or even increase their turnover. The organisation attributes the positive situation in Plaza de España to actions taken by the City Council, which included renovation work that has been ongoing since last year.

However, this is not a success story that is being felt across Majorca.

"Even in areas that historically had very positive figures, this year we are seeing declines of 10% or more," Ferrer continued. 

The Restauración CAEB president has called for awareness of the situation and for the rapid implementation of measures to reverse the trend. 

"Mallorca cannot afford to see one of its most visible economic drivers start to decline," he warned.

In a letter sent to the Majorca Daily Bulletin, Edward Fox - a British tourist who has been visiting Majorca for the last 30 years - said that he has noticed a "drastic increase in not only hotel/apartment accommodation prices but also the increase in food, drink, restaurant prices which is not reflected in the global inflation increases," in the last five of six years of him visiting.

“So go ahead Mallorca, bite the hand that has [come] to this island, put so much money into your tourism, infrastructure, government, hoteliers pockets [...] for the best part of 40 years," Mr Fox wrote.