Ibiza 2023 Mid Season Report

The behaviour of the tourist market has seen the most significant change. While tourist footfall increases, spending power decreases with higher demand for weekend trips. The Hotels are reporting lower occupancy rates, especially in June, which saw a 5% drop compared to 2022. The five-star Hotel sector has reported a decline of 40% in occupancy rates, and many businesses report that people are spending less. Car rental companies say that clients are renting cars by the day rather than the week, with restaurants and shops complaining that increased rates for hotel rooms have led to customers visiting less often and being careful with their spending. Breakfasts are busy, but afternoons and evenings are not normal. Taxis are once again hard to secure as drivers cherry-pick the most profitable and easy fares.  The national Spanish market tends not to eat out in tourist restaurants; they will take a Bocadillo to the beach and cook dinner in their apartment to save money.  The Italian market is suffering the most in the current European recession. 

The Hotels blame the unlicensed accommodation sector for the drop in occupancy rates compared to the notable increase in tourist footfall. In response, the private villas and Airb&B market say that more people are staying with relatives, friends, and on boats to avoid the increased prices across the island. The evidence suggests that tourists are very price-sensitive this year, and the majority are not paying inflated and excessive charges, which the island is now earning a reputation for. Ibiza is losing competitiveness as other European destinations become more attractive to non-clubbing tourists. The sooner they wake up to this fact, the better, as they risk killing the goose that lays the golden eggs. The local market is deserting the Ibiza regulars, families, and singles in favour of adult-only clubbing tourists, who only accounted for 15% of the market less than a decade ago. Today, they are responsible for over 60% of the market.  Everywhere is short of staff this season, due to the accommodation and homeless crisis. 

While the clubs were forecasting a 10% drop from record-breaking figures last year, they now report that the Ibiza 2023 season is just as strong. Driving demand is the Spanish, British, Italian and Dutch markets. Villa parties are just as popular this season, and there seem to be fewer police raids finding them. Once again, HI and Ushuaia are setting all the trends with the most popular parties on the island; the only problem they have right now is the restricted size of their venues, especially Ushuaia, hampered by its pool area. This year’s big news story confirmed that Ushuaia Entertainment would develop the old Privilege Club site to cater to a stadium audience. It is also rumoured that the new venue will carry the Space Ibiza branding, an iconic brand that will be reinvented under the Midas touch of the Pissenem Brothers. At Hi, Black Coffee is the King of the Dancefloor, selling out several nights at the venue. Afterlife will require a bigger platform, and they, along with David Guetta, look destined to move to the new club at Privilege when it opens, which will allow a number of Ushuaia parties to transfer to Hi. The mid-week parties at Hi are busy, but the weekend events are doing better, including Glitterbox. Tiesto is holding his own over at Ushuaia, and he is expected to return next season, as will Dimitri Vegas and Like Mike. Ants continue to hold pole position at Ushuaia, and it would be one of the favourites to transfer to a new venue as I expect a shake-up in schedules when the new Privilege development is ready for action. There will be at least four new slots available to schedule, and I would guess they have a fair idea of who they want to fill them. 

A new modern venue across the road from Amnesia will ensure a stormy future for the underground club, battling to stay relevant in the ever-changing clubbing landscape on the island. While Jamie Jones, Elrow and Pyramid are doing well, sadly, the black curtain has been drawn on some other parties at Amnesia, which is not a good look for its reputation. Amnesia needs to change its business model and do more once-off shows like the Chemical Brothers, which will return to the venue for Pyramid on October 1. Like Luke Skywalker, their estranged DJ, Sven Vath, has retreated to the remote planet of Las Dalias, where he is playing an intimate masterclass in minimal techno. Only two Catharsis parties remain at Las Dalias, so if you are on the island, take advantage of the opportunity to experience one. The rebel alliance at Amnesia needs their old Jedi to return as the First Order orbits their home base with superior financial and political firepower