The Balearic Islands are once again leading Spain’s tourism sector. New data reveals that Ibiza and Formentera hotels now have the most profitable rooms in the entire country, with an impressive average rate of €240 per night. This record reflects the islands’ enduring appeal, their premium positioning, and the balance between exclusivity and demand.

Record Hotel Rates

Ibiza and Formentera have outperformed every other Spanish destination in hotel profitability. The €240 average rate places them far above national standards, driven by strong international demand and limited accommodation supply. Their revenue per available room (RevPAR) remains the highest in Spain, confirming their position as the country’s luxury leaders.

High Spending, Fewer Visitors

While visitor numbers have remained steady in 2025, overall tourist spending has increased. Travellers are staying in higher-end hotels and spending more per night, helping maintain record revenue even with stable arrivals. This shift highlights how Ibiza and Formentera hotels have successfully focused on quality rather than quantity.

Why Profitability Is Rising

Strict development laws prevent excessive hotel construction, protecting both the environment and exclusivity. Many properties have repositioned themselves as boutique, wellness, or eco-luxury hotels, appealing to affluent travellers who seek unique experiences. Meanwhile, local policies that limit vehicle entries and control overtourism further enhance the islands’ image as refined destinations.

Challenges Ahead

Despite their success, both islands face challenges. Extreme weather, higher living costs for locals, and growing concern over overtourism could impact future growth. The key lies in balancing profitability with sustainability and community well-being.

Outlook

With an average rate of €240, Ibiza and Formentera hotels remain Spain’s most profitable. Their strategy of offering premium, sustainable experiences has set a new standard for the national tourism market — one that values exclusivity, balance, and quality over mass tourism.