Menorca’s tourism falters in August: four in ten businesses earn less than last year

August, traditionally the peak month of Menorca’s tourist season, has fallen short of expectations. According to the survey conducted by PIME Menorca, 42.6% of businesses linked to tourism reported lower revenues than in August 2024, while only 25.3% improved their performance and 32% maintained similar results. The figures confirm the downward trend already seen in previous months and show that the sector’s economic recovery has yet to materialise at the key moment of summer.

August loses its strength as the peak month

Although August is when most businesses expect their highest revenues, only one in four companies improved results, while four in ten posted lower figures than in 2024. Compared to July —when half of businesses reported declines— August shows a slight rebound, but still insufficient to meet seasonal objectives.

Car rental and agritourism perform best

Car rental remains the strongest sector: 47.8% of businesses saw higher revenue, while only 26.1% reported a decline. The reduction of multinational fleets has benefited local companies. Agritourism also enjoyed a strong month, with 45.5% of establishments growing and only 27.3% declining, in contrast with previous months.

Holiday rental accommodations remain stable: 29.4% of businesses improved and 35.3% declined, despite price adjustments maintained throughout the season.

Contained spending on-site

Bars, restaurants, shops, and leisure activities continue to experience restrained tourist spending, aggravated by the rise in all-inclusive packages and half-board bookings. The domestic market has lost weight this summer, and visitors’ available resources have been lower.

Local commerce is among the hardest hit: 46.8% of businesses earned less than last August, while only 21.1% improved. The restaurant sector follows the same pattern: half of the establishments earned less, and only 20.7% improved. Active tourism also suffered, with 46.2% of businesses reporting declines and only 15.4% growth.

Nautical sector: slight improvement but insufficient

After several negative months, the nautical sector showed a minor rebound: 26.5% of businesses improved revenues, while 35.3% declined. Results remain modest, considering that August 2024 had restrictions due to heavy rains (DANA), and better outcomes were expected this year.

Conclusion: a summer with limited economic impact

August’s figures confirm that the number of visitors did not translate into an economic boost for many local businesses. On-site spending remains the season’s weak point. Causes include tourists’ reduced purchasing power, more trips booked in advance, shorter stays, and rising transportation and accommodation costs.