Author: Martin Makepeace

As the summer season approaches there’s a strange standoff happening in the UK press as the Daily Mail (surprise surprise) has gone to war on Ibiza and Mallorca in the Balearic Islands with increasingly negative headlines.

In short the UK press is presenting Ibiza and Mallorca in the Balearics as increasingly unaffordable for Brits, both tourists and residents with Lanzarote also coming in for stick for suggesting it needs to diversify away from the traditional budget Brit holiday.

It’s an interesting take on events which isn’t actually a million miles away from the truth although the sensationalist UK press are presenting it as a new phenomenon even though it’s been happening for years.

In truth Ibiza has been going more upmarket for over a decade but it was desperately needed after so many years of relying on budget tour operators filling 3 star hotels with plane loads of square deal tourists, this was the package holidays ‘glory days’ of stacking it high and selling it ‘cheap’ but with tour operators constantly squeezing prices it led to little or no investment in the core product.

We all know what happened to those tour operators once the internet opened up the market and people could start building their own dynamic package: flying from an airport of their choice and getting a private taxi to their desired hotel. Prices started to edge up but it was a win win as the penny dropped for the hoteliers who invested this new wealth back into their business adding luxuries and facilities to improve their product.

In very few years the whole template of Balearic hotels became a completely different animal appealing to new markets. In the mid 90’s the Hotel Playa d’en Bossa was one of Thomson Holidays many family hotels with its superb beach location and enormous kids club. Today it is the Ushuaia Beach Hotel. Things change and Ibiza’s secret has been to be ahead of the curve.

Enough of the brief history lesson, let’s get back to the UK’s press ‘outing’ the Balearics as an expensive destination. No sh*t Sherlock however as I’ve previously written about (link here) it doesn’t always have to be that way and the difference now is that tourists have the choice where previously they didn’t.

Other Spanish resorts have looked at their own template and realised they have to diversify and try to attract a more affluent crowd. This isn’t a bad thing and when it comes to some of the Canary Islands it was chronically overdue. Meanwhile Egypt, Greece and Turkey will keep doing their thing by offering very competitively priced holidays. It’s great to have a choice isn’t it! You pays your money and you takes your chance.

So is the Balearics now more expensive than ever? You bet your life it is but it was well overdue and looking at last year when records tumbled it obviously hasn’t affected the bottom line with these profits being reinvested back into the product with prices edging up even more.

There’s no denying that the recent boom has brought challenges, not least a housing crisis for those who’s job it is to service the tourist industry. The local government talks a lot but has no solution so the emphasis remains with employers to house their staff and include it in their employment package but with low supply and high demand it’s easier said than done. The flip side of this is if you are lucky enough to have invested in Ibiza property over the last 20 years then the capital growth is off the scale. There’s a yang to every yin.

The market has changed, it’s constantly evolving and the Balearics are a snapshot of that but it isn’t a negative. Has the ‘cheaper’ British market been squeezed out? A little, although Jet2 holidays is a roaring success filling the gap of the traditional tour operators with an amazing array of airport and accommodation options and some fantastic prices if you stay away from kids holidays.

There’s always going to be winners and losers and the UK press’s depiction of Ibiza amd Mallorca, although not entirely inaccurate, paints a distorted picture of the truth. Ibiza and the Balearics are finally catching up with other truly world class destinations, not by chance but by hard work and strategic planning but there’s still a long way to go.

Perception is everything and there’s 3 sides to every story. There are plenty of challenges but whether the UK press like it or not, Ibiza and the Balearics have never had it so good.

Summer is around the corner. With it comes plenty of challenges and one that gets more headlines than most is the Ibiza housing crisis – there isn’t anywhere to rent at a reasonable price.

There are 2 main profiles of tenants, those who require short term rental i.e. 6 months (usually over summer) and those who want an annual rent for a minimum of 12 months. In the not too distant past it was relatively easily to find a summer apartment, in 2005 my agency alone had over 100 summer units for rent whereas today we have precisely zero..

The simple reason why summer only apartments have all but disappeared is the high demand from people wanting to live in Ibiza all year round and the prices landlords can now charge for a 12 month let. It’s been getting more difficult every year, high demand has gradually pushed up prices to such a level that landlords can now maximise by renting for 12 months and receive an excellent income.

The rising population of the island over the last 20 years has moved the Ibiza economy forward so many can afford to live here all year rather than for a transient 6 months then needing to go off-island for work in the winter. Ibiza offers a lifestyle that is unmatched by many other places with quiet winters and busy summers, not forgetting the famous 300 days of sunshine per year.

This obviously doesn’t help those coming to the island desperate to find a place to live for summer but this is the reality of the situation. It’s a basic supply and demand scenario. Low supply, high demand of apartments is pushing up prices for the few apartments there are to untenable levels.

Personally speaking, as an agent I haven’t had a reasonably priced apartment offered to me for a long time, agents don’t get the units like before as there’s such a long queue for apartments that most owners have plenty of tenant options without needing an agent.

A recent survey showed that the majority of tenants in Ibiza Town are paying 700-1300 EUR per calendar month for their home. This may sound cheap but historical contracts can only be raised by inflation every year. It’s now difficult to find a decent dwelling for this price and things aren’t getting any easier however after a stagnant few years new apartment blocks are being built again.

The Balearic government has talked about capping the price of rental properties but this will never happen in a free market although local licensing and/or taxation could be a way of control, something has to give sooner or later. Social housing has also been mooted but the local authorities do a lot of talking but don’t seem to want to get involved as this opens up a hornets nets.

So, unfortunately, don’t expect things to get much better any time soon. My advice is look to rent a room or share a 12 month let to spread the spiralling costs or if possible try and buy. As you can see from above, it’s a good investment with solid returns.

The photos of Bora Bora being pulled to the ground have been met with an outpouring of online tears as yet another Ibiza icon comes to a crashing end. It was a similar story when Space closed for the last time and its no coincidence that these 2 venues were inextricably linked throughout the 90’s and noughties ‘glory days’.

As is now usual at these times the ‘Ibiza has lost its soul’ posts have appeared on social media with many reminiscing about the ‘good old days’ when Ibiza had spirit but they also fail to mention that during these times the single carriage road between Ibiza Town and San Antonio was the most dangerous in Spain and most hotel air conditioning was opening a single glazed window.

The rose tinted glasses are hard to remove at times like these and of course it’s sad when any iconic institution closes down. It’s never easy to say goodbye but it does feel like the right time to move on.

Bora Bora was a mythical daytime venue that defied logic and created memories that can never be forgotten but it was of a certain time, a very different time. Ibiza has moved on in ways we could never have imagined and whether you like it’s direction or not, it’s a runaway train that can’t be stopped.

Bora Bora’s location on the seafront in Playa den Bossa is now prime real estate screaming out for a makeover especially when you look around at the resort and see where the market is going with luxury hotels mixing in with world class venues. Whatever happens at the new venue it won’t be as much fun as Bora Bora and it definitely won’t be as messy but for sure it will be more discerning and a lot more expensive. Welcome to the new Ibiza.

These decisions aren’t taken lightly but as the fun police have been coming down hard in recent years there are better ways to make money and the big investment coming into the island shows that there’s no shortage of those wanting a piece of the action.

So by all means shed a few tears for a past love that was part of a romantic story of a bygone age now confined to the history books like Ku’s open air parties, Garlands daytime parties at Kanya and even the Festival Club but also be excited that Ibiza is once again leading the way in reinventing itself for the next generation of demanding thrill seekers who require specifics to stimulate their instagram feed. You might not like it but you can’t stop progress.

The new Ibiza goes from strength to strength, the direction of the aforementioned runaway train doesn’t sit well for many which is understandable but if you were one of the lucky ones who was able to sample those magic mornings in Space then straight to the lunacy of Bora Bora be content that you were able to experience something that the next generation will never be able to as they frantically search for those likes and affirmations on their filtered social media posts.

Those old, grainy 35mm developed photos of lost days at Bora Bora can never be undervalued or taken away so don’t be sad that it’s over, be happy that it happened and that you were one of the lucky ones able to tell the tale. Bye bye Bora Bora, it was fun but Ibiza has moved on.

Reco des Sol is a fairly non-descript hotel in San Antonio. In fact you’ve probably never even noticed it but it’s there in all it’s 90s glory. This is about to change. This hotel has now been granted a licence to undergo a radical facelift and become San Antonio’s latest 5 star hotel that will incorporate the prime piece of land that is currently used as the parking area for O Beach.

Work starts very soon and once finished this new stunning 5-star complex with it’s raised position will dominate the eye-line and will totally change the dynamic of this area where San Antonio meets the entrance to San Antonio Bay which already has three existing 4 star hotels (Bellamar, Hawaii & Ocean Beach) within a few hundred metres of each other. A new 5 star hotel complex kicks things up several notches.

This exciting development is the direction that the new Ibiza is heading in like a runaway train. The unquenchable desire for luxury accommodation driven by a more discerning, mainly adult demographic who want to experience the legendary Ibiza hedonism but also want a stylish base to do it from and more importantly are prepared to pay a premium for the experience.

The fact that San Antonio is now ticking these boxes should come as no surprise. A resort that’s been undervalued for decades, a victim of its 80’s notoriety but is now punching with the big boys on every level. OKU hotel and TRS, both 5 star hotels, have recently opened in Cala Gració with incredibly successful results that haven’t gone unnoticed. There’s still work to be done but Ibiza’s 2nd largest town is undergoing its own transformation.

To throw more fuel on the hedonistic inferno, a certain establishment not a million miles away from Reco des Sol is rumoured to be heavily involved in the new complex that will create a unique vibe for that area and really set the tone for San Antonio’s immediate future.

How the island has changed, a relentless surge upwards for over a decade. As other destinations have discovered you have to change or stagnate. Ultimately the market decides on the direction and Ibiza (which has never been slow on the uptake) has grasped it with both hands. It’s not to everyone’s taste but results don’t lie and 2022 was a record yield for luxury hotels with a seemingly insatiable thirst for high end products on the White Isle.

The vibes are good, the Island is on a forward trajectory few could have foreseen. Expect more announcements over the coming weeks and months that will set the tone for the next decade.

Happy New Year or ‘bon any nou’ as a local would say. 2022 was quite a year as Ibiza staged a monumental comeback, breaking records but with some of the same old problems rearing their ugly heads yet again (lets talk about taxis another time!).

The extended holiday season has been very busy on the Island with direct flights coming in from all over Europe. It was great to see so many tourists of all different nationalities although you could spot the Brits as they were the ones wearing shorts and flip flops whilst the locals wrapped up in fleeces & jackets. Ibiza really is a fantastic place to be over Christmas and New Year and the weather has been fabulous with busy beaches even at this time of year.

Now the holidays are over, thoughts turn to summer 2023 which is shaping up nicely although bookings have gone a little quiet recently which is to be expected. With so many different issues in the world, it remains to be seen if 2023 can keep up with the previous year’s amazing results but indications are positive. Investment is still pouring in and the appetite for all things Ibiza seems to be showing no signs of a slow down.

January and February will be relatively quiet but as March approaches, the Island will spring to life preparing for the busy Easter holidays and then the summer. Ryanair’s international flights start at the end of March and this is when you can feel a real change in the air with a sense of urgency as Ibiza awakens from its winter slumber.

Summer starts in earnest at the end of April and early May and with the super clubs and daytime venues already announcing earlier openings than before (Hï/Ushuaia opening 29 April!) the season looks like it will be an extended one yet again.

Expect plenty of ‘Bride Squad’ sashes and plastic tiaras in the early part of the summer followed by the usual peak season madness when the world class clubs really kick into gear with some unbelievable parties. Love them or hate them, the super clubs and beach clubs have proved once again how important they are to Ibiza’s tourism eco-system.

Local Elections will be held on 28 May, Ibiza has 5 town halls and an island council so that’s a lot of seats up for grabs (and a lot of politicians being paid with public money). The Balearics now have 80,000 more voters in 2023 than in 2011 which shows the growth of the Islands over the last decade.

This might not mean much to those who don’t live on the island but after 4 challenging years it will be interesting to see which way the voters go. Tourism issues will be front and centre for all political parties and the results will have an important bearing on major decisions that will affect the future, although the wheels of change are slow moving at the best of times.

The elections make up only one part of what will undoubtedly be a busy year. For Ibiza lovers and watchers it will be as interesting as always and as the Island continues to evolve, setting itself new objectives to try and keep ahead of the competition, you can be sure there will plenty of talking points along the way.

The dust has now settled on a summer where Ibiza rose like a phoenix from the ashes of a global pandemic, a resurgence that could have only been dreamt about 12 months previously. The pent up demand for travel from an unshackled tourist sector saw records tumble, prices increase and Ibiza aiport reporting pre-pandemic levels of arrivals.

Like any truly world class destination Ibiza is constantly evolving to try and keep ahead of the rest. While other Spanish resorts have stood still with low property prices, a dwindling tourist base and hotels that have seen better days, Ibiza’s property prices have never been so high (a medium sized house with a pool and a small plot of land will now set you back at least a million euros), the quality of hotels are rising fast as are the prices and there are more gastronomic options than ever before – as I write the ‘Etxeko Ibiza’ restaurant at the Bless hotel in Es Cana has been awarded a coveted michelin star.

But trouble is lurking ahead because every 4 years comes a litmus paper test like no other, namely the local Balearic elections that will be held in May 2023. Every vote is important but the next one will be pivotal in sending out a message to the world of where Ibiza and the Balearics will be in 10 years time.

island politics is complicated, each of the Balearic Islands (except for Formentera) is split down the middle with regards to the thorny issue of tourism and how it should be approached. The divide is quite stark, there are political parties that believe that the islands have become oversaturated and that certain segments need to be culled for the general wellbeing of the balearic population whereas others insist that the islands need to maximise for the summer knowing that the winter is always economically challenging. No matter what side, sustainability is the buzz word being used.

The Balearic parliament which has a left wing coalition is particularly good at rolling out radical ideas. The Mes Party recently proposed that Mallorca should completely stop promoting tourism at international fairs “because tourtsts will come anyway” and that all the budget for this should be spent directly on the healthcare system. Meanwhile the Podemos Party gained approval for a study on the maximum human capacity that the Balearic Islands can support. Alejandro López, the spokesman for Podemos, said “we need to know because you can no longer live in the main tourist centres” adding that human pressure also affects the right to housing, “which has become a speculative asset instead of a right for all citizens, as it should be”.

The Mes party in Menorca has tabled a motion to limit Balearic property purchases by non-residents to make it easier for local residents to access the property market, Francina Armengol from the PSOE party, President of the Balearic Government, told parliament that a housing policy is “key” for her government and that she is “aware” of the difficulties that exist in accessing housing on the islands. Expect affordable housing to be a very hot topic come May although nobody seems to have come up with a realistic plan.

Meanwhile Ibiza has seen local residents denouncing the ‘excesses’ of 2022 stirred up by journalists who believe that the previous 2 years without clubs and bars ‘proved’ that the island can not only exist but is a better place without its unique hedonistic selling point. Certain political parties will look to utilise this split come May and use the nightlife sector as a pawn in manifesto pledges.

So 2022 is nearly done and all eyes now turn to 2023 and first up is those pivotal elections. They are currently too close to call with every vote a potential election winner and whoever succeeds will shape the island for years to come but with so many conflicting views on how to proceed in a sustainable manner the pathway won’t be easy or straightforward. How very Ibiza.

*if you are on the Municipal Register at your local town hall (Padrón municipal de habitantes) then make sure you are also registered to vote.

**I’m flying to Qatar next week to sample the unique 2022 FIFA World Cup and will be sharing my experience on what has so far been a controversial tournament.

If there’s one thing I hear more than anything is that Ibiza is ‘too expensive’ for tourists.

You can’t hide away from the fact that prices are eye watering at some establishments for certain products but it’s still possible to come to the White Isle and not spend your entire life savings on a round of drinks at Amnesia.

Now if you want to stay at a top hotel and go to world class clubs, restaurants and events every day and night for 7 nights then this isn’t going to come cheap but this is the same as going to London, staying at the Ritz, going to see a West End show twice a day then eating at the Ivy.

There are plenty of options that won’t break the bank and things to do that don’t involve handing over wads of cash. So instead of taking for granted that Ibiza is like Monte Carlo on steroids, here’s my 10 point guide for an Ibiza experience that won’t cost the earth.

1. Stay in a family run hostal. There’s plenty of options here and prices are surprisingly reasonable if you steer clear of August. Rooms are clean, functional and won’t cost you a fortune. You only need a bed, air con and shower. Have a look at Small and Friendly

2. Eat local. Where do you think residents eat? Local bars serving delicious tapas and meals at incredible prices of course. Don’t follow the pack, look for vibrant, busy local bars serving daily menus. You can thank me later. Some great options at Menu del Día

3. Use public transport. Buses run regularly in the summer between the main towns meaning that it’s easy and cheap to get around. San Antonio to Ibiza for example is 2 euros, yes that’s right – 2 euros. More details at Ibiza Bus

4. Spend a day in Ibiza old town. This world heritage site is an amazing place to visit with nooks and crannies everywhere and spectacular views to Formentera and the port. It’s cultural and people -watching heaven, good fun and won’t cost you a penny. Croissant Show at the bottom of the rampart is a good place to cool off with a beer and sandwich. More info here

5. Picnic at the beach. Italians are experts at this and it’s so easy. Spend a tenner at a supermarket or bakery on a filled baguette with all the trimmings then go and bake yourself on a towel for the day on a gorgeous white sandy beach while smiling at the champagne swilling, Bali bed hugging wannabe next door spending a fortune. No fuss heaven.

6. Visit Formentera. See point 5 but get the bus to the port in Ibiza and make the 30 minute crossing to one of the most beautiful places you’re ever likely to go to. Take a walk or rent a bicycle, go to Illetas or es Palmador which are right up with the best beaches in the world and guess what, it won’t cost you a kings ransom plus the Instagram pics will get your friends back home frothing at the mouth. Formentera official website

7. Sunset on the sunset strip. This daily ritual is crackling with excitement and ambiance but (yet again) you don’t have to be sat at a frontline table with a ridiculous minimum spend, you can mingle in with the crowds or sit on the rocks soaking up the moment that will define your holiday. Add in a few tinnies bought from a supermarket and a local meal on the way home and the night you’ve been waiting for has come at amazingly little cost.

8. Treat yourself to a super club. Ibiza’s super clubs are world famous, some tickets are as cheap as 35 euros and with night buses running regularly you can get there and back relatively easily. Stay away from the bar and dance the night away at the home of Balearic bliss and take away memories that will last a lifetime and not cost a fortune

9. A walk is good for the soul. Ibiza is a beautiful island with some incredible walking routes. Take a couple of hours to have a stroll and take in the nature and views and hopefully the penny might drop that seeing the island through the bottom of a 3 litre flashing vodka bottle isn’t mandatory behaviour – more at Ibiza Outdoors

10. Relax, chill, sunbathe, beach, sleep, eat, dance, walk, drink, chat, sample, discover, repeat.

There’s so many options on the White Isle that sometimes it’s hard to see the woods for the trees but don’t follow the herd or be part of the crowd that takes the easy route. Scratch away at the surface and you will find that you don’t have to spend a fortune to reap the benefits of this amazing Island. ‘Ibiza is too expensive’ is just a myth peddled by people on social media who don’t know any better. As I said, you can thank me later.

Happy October. These 2 words will come as a relief to many after what has been an incredibly busy summer season for the White Isle. It’s difficult to believe that little over a year ago nightclubs weren’t able to open, it was illegal to dance and most bars had to close by 1am.

Ibiza Summer 2022 has been the polar opposite to the previous year, business owners will tell you it’s been a good year but make no mistake it’s been a record year. The number of arrivals might not be at pre-pandemic levels but takings have been off the scale as tourists scrambled to make up for 2 ‘lost’ summers while prices have been maximised across the board.

Hotel rates have never been so eye watering, restaurants packed out every night and the clubs are back with a bang with those VIP packages at prices to bring you out in a cold sweat. The desire to make up for lost time has been unprecedented, the bounce back more extreme than anyone could have foreseen after 2 difficult years that saw local businesses hang on by their fingernails while others closed for good. From the despair of 2020 came the triumph of 2022 but it hasn’t come without its consequences.

For 2 summers Ibiza was forced to focus on food, nature and culture and some political commentators are already saying that a big opportunity has been missed to curb the excesses of the island. The no clubs nirvana that some had been striving for was only a short term illusion. Local elections are looming in May 2023 and it will be interesting to see if town halls change their approach next year if voters levitate towards the parties who promise to get tough on excess. As we have seen in past, Ibiza politics is a complicated animal where a few hundred voters can have a massive effect on certain segments of the market.

This summer proved that as much as Ibiza is a beautifully historic island with incredible cuisine, its X-factor and USP is world class entertainment in amazing settings that is difficult to find anywhere else on the planet. The island made a good job of selling itself without the clubs (day & night) when it had to but this is what really defines it where mass tourism is concerned. The secret, as always, is finding the middle ground where culture and pure hedonism can coexist but if anyone can find this then they might also be able to solve world peace. Ibiza as ever is an island of extremes that polarises local opinion.

Already there is much expectation for summer 2023. Unprecedented investment will happen over the winter yet again but it’s tough to see how Ibiza can follow this years trajectory. Even the most optimistic can see that business will most likely plateau now that the covid cobwebs have been shaken off but prices will continue to go upwards. It’s a simple supply and demand issue.

Summer 2022 will be remembered as the big comeback year for Ibiza, bigger than we could ever have hoped for but we shouldn’t get too carried away. Recent history has shown that there’s a thin line between success/failure and boom/bust. The island has to keep its feet on the floor and consistently improve its tourist offering on every level but for now we can definitely celebrate a job well done. Roll on the winter.

The news of the passing of HM Queen Elizabeth II evokes many emotions. It’s a day we knew would happen but never wanted to think about.

The tributes from all from over the world is a mark of the respect and esteem that she was held in by people from all walks of life, from Presidents to ‘paupers’. In the then Princess Elizabeth’s 21st birthday speech she solemnly swore to a life of service ‘whether it be long or short’ and she was true to her word with over 7 decades of selfless and unwavering service to the British nation and the Commonwealth.

Her Majesty has been a constant presence for so long, one of my first memories as a 7 year old boy was a street party with all my neighbours celebrating the Silver Jubilee of 25 years on the throne. As Queen her first Prime Minister was Winston Churchill (born in 1874) and it’s this connection to the past that was such an incredible conduit from today to a bygone era, an era without the internet or even television and when radio was the most used medium of communication.

Her reign was not without challenges. From wars and social unrest, family issues that still exist today and a pushback against the British monarchy after the death of Princess Diana. The Queen faced all her challenges with a traditional British stiff upper lip, stoic compassion and words of comfort without taking sides. She encompassed everything that is thought to be British – her famous mantra was never explain, never complain.

The Queen had a legendary sense of humour but also an empathy with all people and her ability to ask the right question at the right time was a lightning bolt for those present who knew they had to be on their A-game even in the presence of a pensioner, she could never be underestimated. For us ex-pats who live outside the UK, the Queen has been a shining light of Britishness, something to hold on to, a figurehead we could all be proud of. It’s difficult to explain to other nationalities but she seamlessly brought a community together when it was needed most.

Whatever your views on the modern-day monarchy you can’t help but be touched by the worldwide outpouring of grief for the death of a dignified 96-year-old great grandmother who in a world of change represented continuity, in an age of division remained transcendent and in a time of constant self-promotion embodied self-effacement.