Is Ibiza pricey? Prices for spaces, food and taxis are increasing

Is Ibiza expensive? Prices for rooms, food and taxis are rising

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A seaside dining establishment charges 30 euros ($30) for a hamburger.

A big sunbed at a high end beach club can cost 500 euros in August.

And a table at a “VIP” bar can encounter the thousands.

Though Spain is usually thought about a fairly priced travel location, the Spanish island of Ibiza has actually long been called a location for living the jet set.

“The pricing is silly,” stated Ben Pundole, a high-end hotel expert and longtime Ibiza visitor, in an e-mail to CNBC. “After 23 years in New York, I can just compare it to the Hamptons in the height of [the] season.”

Beachgoers and boaters at Cala Salada, Ibiza.

Alex Tihonov|Moment|Getty Images

Yet Ibiza’s visitors more than happy to invest huge, Pundole stated.

“Ibiza is very expensive, it’s always been expensive,” he stated. “But people are willing to pay.”

Rising rates

While hippies were drawn to Ibiza for its reported “magnetic” vibrations in the 1960 s, it was perhaps British-Australian Tony Pike who put the island on the map when he opened the Pikes Hotel, now called Pikes Ibiza, in1980 The little hotel changed a 500- year-old estate in the hills into a celebration sanctuary.

Pike’s abundant and well-known good friends, such as Freddie Mercury, George Michael and Kylie Minogue, remained at the hotel– and it’s still a location that draws crowds to its spaces, dining establishment, and dancefloor.

The 1980 s likewise saw the increase of clubs such as Amnesia, Space (now house to Hi Ibiza) and Pacha, with the latter presently charging 13 euros ($13) for a routine can of Coca-Cola More clubs have actually because opened, consisting of Ushuaia, which was called the 3rd finest club on the planet in 2019 by the International Nightlife Association.

A can of Coca-Cola at a VIP table at Ibiza’s Pacha bar costs $13, while full-size bottles of alcohol begin around $500

Zowy Voeten|Getty Images

Restaurants, clubs, vacation leasings and taxis have actually all significantly treked rates this year, Pundole stated.

“It’s an island, it’s seasonal, businesses are making up for two years of lost revenue, there’s supply chain issues and the pent-up demand is enormous,” he stated.

Indeed, the variety of travelers going to the Balearic Islands was up 300% year over year in May, according to Spain’s National Institute of Statistics.

‘Established glamour’

Ibiza’s credibility as a high end location developed over a couple of years, stated Carolyn Addison, head of item at high-end travel professional BlackTomato “It has this kind of … established glamour. So, there’s a lot on offer that is expensive,” she informed CNBC by phone.

“You would have to trace it back to the ’60s when there was this sort of … hippie crowd that washed up,” she stated. “As that crowd possibly grown older, richer, more recognized, [it] specified the island in a brand-new method.”

A six-night journey arranged by Black Tomato begins with around ₤ 6,100 ($ 7,260) per individual, consisting of lodgings, breakfast and a one-day personal luxury yacht charter (the cost omits flights).

A six-night journey to Ibiza with travel business Black Tomato– with remain at locations like the 7Pines Resort Ibiza (here)– begins at around ₤ 6,100 ($ 7,260) per individual, omitting flights.

Source: Black Tomato

Six Senses Ibiza is popular with Black Tomato’s customers, statedAddison The high-end hotel revealed the addition of 19 personal homes and 2 “mansions” in June.

Mansions expense around $16,000 per night in the summer season, according to the hotel’s site. Guests have access to a day spa, kids’ club and everyday activities such as kayaking and cliff leaping. Each includes a “Guest Experience Maker” who can arrange bar entry and boat journeys, according to the hotel.

Also brand-new at Six Senses this year is Beach Caves, a place with a dining establishment, live music area, tape-recording studio and 6 suites with extra-large beds, near the town of Portinatx on Ibiza’s north coast.

Pundole, who is Beach Caves’ imaginative director, explained the location as having “a different vibe,” and called it “curious, mystical, equally as hedonistic, and as bohemian as anywhere you could imagine.” Beach Caves suites begin with 1,565 euros a night in the summer season.

The Cave Royale suite at Beach Caves,Ibiza Room rates at the hotel start at 1,565 euros ($ 1,582) per night in the summertime season.

Source: Beach Caves

This year likewise saw high-end hotel group Mandarin Oriental take control of management of Tagomago, a personal island off Ibiza’s eastern coast. The whole island is readily available to lease for around 30,000 euros a night throughout the high season, that includes a personal vacation home, chef, concierge, butler, vacation home host and private yacht captain, according to an advertising pamphlet.

Luca Finardi, operations director of Mandarin Oriental Exclusive Homes, stated Tagomago’s customers consist of “a variety of high-end individuals from all over the world.”

Luxury needs

Asked why Ibiza is so pricey, Finardi stated by e-mail that the island is popular with upmarket tourists who desire a mix of “beautiful scenery, high quality restaurants and bars, chic shopping experiences and lively nightlife.”

“It also provides lovely areas where guests can find quiet corners to escape the crowds,” he stated. “It represents value for money to people seeking these experiences.”

The personal island of Tagomago includes a chef, butler, concierge, vacation home host and private yacht gain access to.

Source: Isla de Tagomago

At A.M.A Selections, a high-end house scheduling website that released in June, the typical expense of a 10- day vacation home remain on Ibiza is around 26,500 euros, according to co-founder MariekAnselme Most customers include services such as pop-up movie theater experiences– which begin with 500 euros per screening– in addition to personal chefs, yoga classes and health spa treatments.

“The island is able to strike a balance of authentic, boho charm with upscale offerings popular amongst VIPs and wealthy travelers,” Anselme informed CNBC by e-mail.

“For decades it’s pulled in iconic names in the music industry, creating an elite and extravagant entertainment scene … In recent years we’ve seen more global leaders in luxury hospitality open in Ibiza, giving it a world-class status that is able to command high prices,” she included.