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Palma to Invest €300 Million in Decade-long Overhaul of Playa de Palma

Officials predict accommodation prices will rise as outdated hostels are replaced by upgraded lodging.

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Overview

  • The project encompasses 35 measures over 10 years, including street and sidewalk renovations, integration with the BiciPalma bike network and park-and-ride lots tied to a planned train line.
  • Planners aim to convert outdated one- and two-star hotels and hostels into housing, build 450 new apartments and ban new budget hostels to curb party tourism.
  • The city council has started consultations with residents and industry groups to refine design and implementation details.
  • Upgrades to the sewage system and street lighting have been underway for two years, with work pausing each summer to avoid disrupting visitors.
  • New green spaces, cultural facilities and stricter controls on illegal holiday rentals are intended to boost livability while preserving tourism’s economic contribution.