Mallorca retail sales fall despite strong tourist arrivals

Mallorca retail sales have fallen by between 10 and 15 per cent this summer compared with the previous year, despite strong visitor arrivals, the Federation of Balearic Commerce Business Associations (Afedeco) said in Palma, Mallorca, on 19 August 2026.

The association said a significant share of the island’s shops were reporting lower takings. Its vice-president, Pedro Miró, said the figures suggested that increased tourism was not producing a comparable boost for small and medium-sized retailers.

Holiday costs and spending patterns

Afedeco said it wanted to examine how visitors’ spending habits are changing and which sectors receive their money during a stay. Higher overall holiday costs, particularly travel and accommodation, may leave tourists with less to spend in local shops, it said.

The group also pointed to a growing share of visitor expenditure going to restaurants, leisure activities and transport, reducing the direct benefit for some retail businesses.

Call for clearer tourism data

Afedeco proposed regular indicators to track how tourist spending is divided between economic sectors, with particular attention to money spent in local retail.

The association said shops were also facing rising labour, energy and rental costs. It argued that the tourism season should be judged not only by visitor numbers and occupancy, but by the income it generates across Mallorca’s wider economy and neighbourhood businesses.

Topics: Housing · Tourism · Economy

Source: Europa Press / Mallorca.com