The outlook is bleak for the bar and restaurant sector in the Balearic Islands this year.

19:58, Mon, Jan 19, 2026 Updated: 20:00, Mon, Jan 19, 2026

Restaurant terrace full of diners at noon in the historic center of Palma de Mallorca

The outlook is bleak for the bar and restaurant sector in the Balearic Islands this year. (Image: Getty)

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As holidaymakers' budgets get tighter amid skyrocketing flight and accommodation prices, other sectors on the ground, which form another vital part of the tourism sector, are set to suffer this year. For the Balearic Islands, especially Majorca, the outlook for the bar and restaurant sector in 2026 is not a good one.

According to new predictions, the iconic holiday island is set to see 500 to 600 closures this year alone. This has largely been blamed on tourists arriving with limited budgets and staying for far shorter periods, having already been forced to spend larger sums on flights and accommodation. According to data from Spain's Instituto Nacional de Estadística (INE), over the last decade, one in 10 bars and cafés in the Balearics has closed.

Waiter preparing a blue lagoon cocktail in a bar

One in 10 bars and cafés in the Balearics has closed in the last decade, according to INE data (Image: Getty)

Amid the crisis, the Small and Medium-sized Enterprise of Mallorca (PIMEM) has advocated for a distinct collective bargaining agreement for restaurateurs, separate from hoteliers, who operate under a different business model. Among their key issues are the negative impact of hotel seasonality, the dominance of “sun and beach” tourism over gastronomic or conference tourism and the detrimental effect of all-inclusive packages on local businesses.

The sector is also grappling with staff flocking to hotels during peak season and increasing absenteeism, compounded by many restaurateurs reaching retirement age, the Majorca Daily Bulletin reported. 

According to César Amable, who has presided over PIMEM since November 2022, it is predicted that between 500 and 600 bars and restaurants will close in Majorca this year.

“This season, tourists arrive with little money and little time. They’ve already spent their budget on flights and accommodation. Before, it was normal to come for a week, even two; now, at most, they stay for four days,” Mr Amable warned.

Woman using smartphone to book flight tickets and plan holiday

Families have had to cut their holiday budgets by an average of £941 in recent years (Image: Getty)

Taking to Facebook in August last year, one Brit looking to book their holiday to Majorca for 2026 wrote: " Why is it so expensive to go to Majorca? We love the place, but is it me, or do prices for next year seem extortionate? The exact same hotel through Jet2 again for the same 10 nights is a grand more expensive next year."

Another replied: "It's absolutely disgusting, how [are they] allowed to charge so much? What will it cost in 2027? We will soon be saying it's ok, we can remortgage the house or sell a body part. The more we pay what they ask, the more they will increase."

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In September 2025, a poll found that 66% believe price increases have made it more difficult to get away, while 69% said they had to get creative with their money to make trips overseas possible due to increased air fares. 

According to research commissioned by travel insurance provider Staysure, which polled 1,000 parents of children aged 16 or under who holiday abroad, families have had to cut their holiday budgets by an average of £941 in recent years, with the cost of a holiday now just over £2,800. As a result, 44% are now more likely to opt for a staycation than a trip abroad.