QUALITY CONTROL OF HOTELS

The Balearic Government has proposed a "bank" to control the number of hotel and tourist apartment beds available on the islands.

Through this new move, it's hoped that a stop will be established that prevents the buying/selling of tourist accommodation that should not be on the market, either because it's out of date, or owners have applied for reforms that they have not yet carried out.

Out-dated hotel or tourist apartment places, taken off the market, will be put into a statistical "reserve fund" to control the future development and total number of beds available. For example, if a hotel or tourist apartment owner agreed to accept compensation to demolish an old building, the number of tourist places the building occupied would be added to the "reserve bank". These could then be sold, at a price not specified, to someone who planned to build a new hotel or tourist apartment building in another part of the Balearic Islands.

By this scheme, the government aims to avoid an increase in the number of tourist beds in the Balearics. This would also mean that the Open Spaces Plan under which out-dated tourist accommodation is demolished to make way for green areas, would be mainly financed by "selling" reserve places instead of using only public funds. The owner of a demolished building would be partly compensated by the "sale" of the hotel's tourist places.

The government project, announced last Tuesday by Tourist Councillor González Ortega, will be discussed by representatives of the hotel sector and worker's unions before becoming part of the General Tourism Law, due to be approved this summer.

However, during the intervening months before the Law is approved, the government hopes to avoid speculation with old hotels or apartment buildings which are already officially "off the market". Ortega admitted that owners could "theoretically" be listed in the "bank's" computer before the Law's approval in summer although he added that his department would be "on the look out for suspicious" cases.

Once the law is valid, hotels or apartment blocks which have been forcibly closed because owners have not complied with the government's tourist reform plans will be "worth nothing" according to Ortega.

The Tourist Councillor commented that after the law has been approved, anyone wishing to build a new hotel, will have to apply to the "bank" for available hotel places - if places are available - although the law will not stipulate the cost of hotel places which will be negotiated privately. However, the Tourist Council will be able to intervene in any proposed project and decide if new hotel places would benefit the area in question.
The Councillor said that it was now time to abolish the granting of extensions to old hotels requiring modernisation. He commented that some hotels have been under reform for as long as seven years and work had still not been completed. Inspections would be carried out to ensure that this did not occur in the future.

Later in the week, the Tourist Council introduced a new automatic tourist information service. This service, similar to a bank cash point, will be available on a 24-hour basis and will be completely automatic. The information computer will be "user proof" according to the council and will be free. Tourists will be able to obtain information about hotels, tourist areas, entertainment, cultural activities and tourist businesses whenever they have the need. Each information computer will cost 1.5 million pesetas and will be funded by the government, town councils and hotels or companies willing to co-operate with the scheme. The number of 24-hour information computers to be installed, or their location, has not yet been decided.

INVESTMENT IN OLD PART OF PALMA

Recently, two "casas señoriales", or city mansions, have been bought by Dadal, a company based in Mallorca, but jointly owned by British and Jewish business people with Mallorcan partners. The two buildings; Barón de Pinopar and Can Magraner will be converted into luxury flats, which are increasingly in demand in the historic city centre.

Dadal, a recently formed company, plans to continue purchasing property in Sa Calatrava and one of its plans is to convert an old mansion house into a luxury hotel. Baron de Pinopar, also known as "La Baronessa", or Can Antich, is situated in front of the Montesión Church in the street of the same name. The mansion house, which was originally a Jewish nursery school, has 2,100 square metres of living space. It was reformed in 16th century and was closed up when "La Baronessa" died six years ago. It was then sold to Dadal by the Baron's descendants and was originally purchased with the idea of turning it into a luxury hotel, similar to Ca Na Galesa. Plans have since been changed and the building will now be converted into seven luxury town flats.

Can Magraner, an 18th century building with a total of 1,500 square metres, is in calle Sol, near the Church of San Francsico. It will need costly and extensive refurbishing as it has been abandoned for almost 30 years.

Mercedes Canaves, a partner in Dadal, explained that the company has invested in the region of 150 million pesetas on the buildings and plans to spend a further 200 million in restoration work.

Canaves, who has ample experience in htis kind of work, denied that the company was speculating with old city property. She pointed out that Palma cannot allow its historic buildings to fall into ruin. "If the only way we can preserve these buildings is by turning them into city flats then so be it". Canaves also denied, as had been previously rumoured, that a large percentage of prospective clients were Germans. "About 90 per cent of the proposed flats have already been spoken for and prospective buyers are either Mallorcan or Spanish". she pointed out.

It was also rumoured that Annie Lennox, former singer with Eurythmics, had bought the Barón de Pinopar mansion. Mercedes Canaves commented that Lennox, who owns a house in Esporles, is a good friend and had accompanied her one day when she was viewing the mansion. However, according to Canaves, the singer is not involved with either the company or its projects.

Although the Germans may not be involved in the Dadal project, they are not far behind in the property market. Vileba, a company belonging to the German Group Schörghuber, informed the press that the company is finalising Council planning permission to build two blocks of flats in calle Bernard alongside the old city walls, which the company bought more than ten years ago.

Benacerraf, a Venezuelan company, has also announced, through its agent in Mallorca, plans to build on two plots of land it acquired several years ago. The plots are in calle del Mar and Sa Calatrava, both in the old area of the city.

A well known Mallorcan business family, which own shops in the city, has also applied for permission to build flats on land occupied by an old carpet factory in calle Bernard. A German owned estate agency, Kühn and Partner, have recently put a Sa Calatrava mansion house on the market. The building has already been converted into luxury flats.

Since 1987, Palma Council has invested 1,500 million pesetas in grants for reforming this old district of the city.

GUARDIA CIVIL SEIZE IBIZA'S FERRY

The ferry, which was cordoned off and immobilised last Saturday by the Guardia Civil in the Port of Palma, has been covering the Palma / Ibiza / Denia crossing since December 1996.

Following a judicial order issued by a Madrid judge in a non payment of debt case against Isnasa, the owners of the ferry, the Guardia Civil were ordered to immobilise it. The vessel was built by a Huelva shipbuilding company which claims that Isnasa had not paid for the ferry which Flebasa has chartered from Isnasa.

The majority shareholder of Flebasa, Victoriano Sayalero, is also a majority shareholder of Isnasa. Flebasa considers that it is a victim of the financial problems between Isnasa and the Huelva Shipbuilding company. According to Flebasa, they have signed a contract to charter the ferry until the year 2000 at a daily rate of 1.8 million pesetas and that this contrat should be honoured. The ferry is run by Flebasa staff and the company pays for all the running expenses.

According to the judicial report, the "Manuel Azñga" forms part of the company's assets since the company filed a payment suspension order at a court in Algeciras. However, Flebasa is convinced the order was issued by a judge who was obviously unaware that Flebasa runs the only public ferry service linking the four main Balearic Islands with Mainland Spain leaving island residents without this essential inter-island transport service.

Last year, Flebasa made an official complaint to the EU over the Spanish Government's monopoly of ferry crossings by the former state owned Trasmediterranea ferry service. As a result of this complaint, the Government has not yet been able to authorize ferry crossings to the now privatised Trasmediterranea company. Flebasa believes that this complaint could be at the root of the embargo by a Madrid court.

A Flebasa spokesperson also commented that there was no need for Saturday morning's Guardia Civil operation which reminded him of "times long gone". He reported that the ferry was surrounded and boarded by twenty members of the Guardia Civil, led by two captains, carrying sub-machine guns. "It would have been quite sufficient to telephone or fax the company offices informing them of the judge's decision."

The Flebasa crossing between Palma, Ibiza and Denia is being covered by the "Bahía de Málaga" until further notice.