So much has been said about Ibiza’s shift towards higher end tourism, all about 5 Star V.I.P. Ibiza replacing Families and Economy, but is it true?

There is no doubt that 5 Star accommodation is available in Ibiza, some of the island’s most high profile brands are in the luxury end of the hotel market, but has it really taken over to the extent we think?

Time to find out as we have the official breakdown of all Hotel beds in Ibiza and Formentera by their star rating, and going back to 2008, the first year of the figures in their current form.

Place your bets.

What percentage of Ibiza’s 2018 hotel beds do you think are 5 Star?

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And what percentage do you think are 4 and 5 star against 3 star and below?

Let’s say a correct answer can be 5% either way. 10 points if you guess right, but if not it will be interesting to know whether you over or underestimate the ratio of Ibiza’s luxury beds.

2008

The year that Boris Johnson was elected mayor of London, and Johnathon Ross and Russel Brand got into a lot of trouble for that phone call. Doesn’t feel so long ago does it?

It was not until 2010 that Ibiza opened the doors of its first 5 star rated hotel – which I’m guessing was probably the Gran Hotel in Botafoch – unless you know otherwise?

4 star accommodation was also relatively thin on the ground. The Royal Plaza stood as an example of traditional luxury as it does to this day, and I’m sure the Hacienda Na Xamena was a 4 star back then.

in 2008 the 4 star+ luxury hotels beds accounted for 12% of the total.

2018

Fast Forward a decade. Ross and Brand may have quietened down, but Boris continues to, er,  divide opinion.

So what did you think? I’m guessing everybody would have said an increase from 12%, but by how much?

 5 star in Ibiza now accounts for 9% of overall bed numbers.

With 4 star having near doubled to 22%, the combined 31% means the luxury sector accounts for just shy of a third of Ibiza’s beds.

So is that a lot? Well only you can answer that question. In terms of pure increase it is substantial. But others may say that although sizeable, our historically core 3 star and below business still outnumbers the high end clients 2 to 1.

Timeline

The year to year timeline below shows how the change occurred.

The overall number of hotel beds has increased over the decade, but not dramatically. The 59,000 of 2008 increased by 8% to 2018’s 63,000. The additional 4,700 beds are coincidentally similar to the actual number of 5 star beds created.

Though some of the additional ratio of 4 and 5 star has come from the 3 star sector, the significant majority has come from the budget 2 star and below end of the market.

There has been much debate on whether Ibiza’s shift towards V.I.P. and higher end tourism is sustainable. Despite the big shift in higher end accommodation, the summer occupancy levels will do nothing to help the cause of those who say the luxury market is a house of cards waiting to collapse.

In our hotel statistics for July 2018, Ibiza’s 5 star is leading the way at a whopping 92% occupancy, whereas the budget grades are slipping backwards by as much as 16% year on year.