Seaside restaurant charges €30 ($30) for a burger.
A large sun lounger at a prestigious beach club can cost 500 euros in August.
A table in a nightclub “VIP” can number in the thousands.
While Spain is generally regarded as a destination for reasonably priced travel, the Spanish island of Ibiza has long been known as a destination for the high life.
“The prices are stupid,” Ben Pandol, a luxury hotel consultant and longtime visitor to Ibiza, said in an email to CNBC. “After 23 years in New York, I can only compare it to the Hamptons in the midst of [the] season.”
Beach lovers and boaters in Cala Salada, Ibiza.
Alexey Tikhonov | Moment | Getty Images
However, visitors to Ibiza are willing to spend big money, Pandole said.
“Ibiza is very expensive, it has always been expensive,” he said. “But people are willing to pay.”
At that time, hippies were drawn to Ibiza because of her rumors.magneticIn the 1960s, it may have been British-Australian Tony Pike who put the island on the map by opening the Pikes Hotel, now known as Pikes Ibiza1980 A small hotel has turned a 500-year-old estate in the hills into a party paradise.
Pike’s rich and famous friends like Freddie Mercury, George Michael and Kylie Minogue stayed at the hotel – and the place still draws crowds to its rooms, restaurant and dance floor.
The 1980s also saw the rise of clubs such as Amnesia, Space (now home to hello ibiza) and Pacha, with the latter currently charging €13 ($13) for a regular can of Coca-Cola. More clubs have opened since then, including Ushuaia, which was named the third best club in the world in 2019 by the International Nightlife Association.
A can of Coke at the VIP table at Ibiza’s Pacha nightclub costs $13, while full-size bottles of liquor cost around $500.
Call Woeten | Getty Images
Prices at restaurants, clubs, vacation rentals and taxis have risen markedly this year, Pandol said.
“It’s an island, it’s seasonal, businesses are making up for lost profits in two years, there are supply chain issues and pent-up demand. [post pandemic] huge,” he said.
Indeed, the quantity the number of tourists visiting the Balearic Islands has increased by 300% compared to last year in May, according to the Spanish National Institute of Statistics.
Ibiza’s reputation as an upscale destination has evolved over several decades, according to Carolyn Addison, product manager for luxury travel company Black Tomato. “He has such… established glamour. So there’s a lot of expensive stuff here,” she told CNBC by phone.
“You would have to trace it back to the 60s, when there was this… hippie crowd that took over,” she said. “As this crowd has perhaps grown older, richer, more established, [it] redefined the island.
A six-night trip organized by Black Tomato starts at around £6,100 ($7,260) per person, including accommodation, breakfast and a one-day private yacht charter (price does not include airfare).
A six-day trip to Ibiza with travel company Black Tomato – with stays at places like 7Pines Resort Ibiza (here) – starts at around £6,100 ($7,260) per person, excluding airfare.
Source: Black Tomato
According to Addison, Six Senses Ibiza is popular with Black Tomato customers. luxury hotel announced the addition of 19 private residences and two “mansions” in June.
Mansions cost about $16,000 a night in the summer, according to the hotel’s website. Guests have access to a spa, kids’ club and daily kayaking and cliff jumping. Each room has a “Guest Experience Maker” that can arrange nightclub entry and boat trips, according to the hotel.
Also new for Six Senses this year is beach cavesa place with a restaurant, a concert hall, a recording studio and six suites with extra-large beds, near the town of Portinatx on the north coast of Ibiza.
Pandol, creative director of Beach Caves, described the area as having a “different vibe” and called it “curious, mystical, as hedonistic and as bohemian as anything you can imagine.” In summer, Beach Caves apartments start from 1565 euros per night.
Cave Royale Suite at Beach Caves, Ibiza. Room rates at the hotel start at EUR 1,565 (USD 1,582) per night during the summer season.
Source: Beach Caves
Luxury hotel group Mandarin Oriental has also taken over Tagomago, a private island off the east coast of Ibiza, this year. According to the brochure, the entire island can be rented for around €30,000 per night during high season, including a private villa, chef, concierge, butler, villa owner and yacht captain.
Luca Finardi, chief operating officer of Mandarin Oriental Exclusive Homes, said that Tagomago’s clientele consists of “a variety of upscale people from all over the world.”
Asked why Ibiza is so expensive, Finardi responded by email that the island is popular with wealthy travelers looking for a combination of “beautiful scenery, high quality restaurants and bars, chic shopping and vibrant nightlife.”
“There are also great places here where guests can find quiet corners to avoid the crowds,” he said. “It represents value for money for people who are looking for this experience.”
Tagomago Private Island has a chef, butler, concierge, villa owner and yacht access.
Source: Isla de Tagomago.
According to co-founder Mariek Anselme, on AMA Selections, a luxury accommodation booking site that launched in June, the average cost of a 10-day stay in an Ibiza villa is around 26,500 euros. Most clients add services such as pop-up cinemas that start at €500 per view, as well as private chefs, yoga classes and spa treatments.
“The island is able to strike a balance between authentic boho charm and upscale offerings popular with VIPs and wealthy travelers,” Anselm told CNBC via email.
“For decades, it has attracted iconic names in the music industry, creating an elite and extravagant entertainment scene… In recent years, we have seen more world leaders in luxury hospitality open in Ibiza, giving it a world-class status capable of commanding high prices. ” she added.