Calviá Beach
An innovative project
for the sustainable regeneration and recovery of a mature destination
Magaluf (Majorca, Spain)
Introduction and background
“Not only a family mission, but a huge corporate social commitment
and an ideal testing ground for innovation in products and travel experiences”
Gabriel Escarrer, Vice Chairman & CEO of Meliá Hotels International
Why promote the Calviá Beach project?
• Magaluf: a major tourism destination in progressive decline
• Meliá Hotels International: a company born in Mallorca, with a wide,
leading offer in the area and a strong social commitment with the destination
• Opportunity to reinvent an obsolete tourist offer and enhance the
destination’s social and economic sustainability, in alliance with the public sector
Project approach
Calviá Beach is a project that maximizes the creation of shared
based on four strategic pillars:
value, and is
Repositioning
A pioneering approach to public-private
collaboration
The social commitment to a management
model that prioritizes responsibility
towards both the community and the
company
Shared Value
Public-private
collaboration
Innovation
Diversification and innovation in
products, services and marketing
Social Responsability
The regeneration and repositioning of a
mature destination
Since the 90’s…
Magaluf, a destination poorly integrated with the rest of the Calviá coast and greatly affected
by the crisis (low profile tourism, all-inclusive formulas, price-cuts, shorter seasons)
… the opportunity versus the crisis
Change the vicious circle…
quality loss
price drop and obsolete product
shortened season
lack of profitability, value erosion
abandonment and creation of ghettos
… into a virtuous loop
investment
innovation and quality, fresh product
price and occupancy increase
extension of the season
higher profitability, value creation for
the whole community
Calviá Beach project
mission statement
We are committed to create a first-class modern upscale integrated
resort, introducing a full range of unique leisure and entertainment
products to the European tourism market, and thus create a new
source of sustainable demand, which will encourage all other local
businesses to further renew and innovate, and integrate the
destination into the surrounding areas of the island
Objectives
• Integrate Magaluf with its surroundings
• Increase the area’s economic and social value
• Reposition the destination through improvements to its environment and
facilities
• Introduce innovative products and experiences supported by premier
partners
• Open the destination to current and future residents, as a lever for
improvement
• Optimize use of off-peak months and extend the season
How do we do it?
Public funding  no
Private funding without public support & legal security  unfeasible
Calviá Beach Project 
Combine public & private efforts in a project of interest for the whole
community
•
Declared “Project of Regional Interest” in 2011 by the Balearic Islands Regional Government
•
Awarded with the “Spain’s Honorary Plaque for Tourism Merits” for the Public - Private partnership for the
modernization of mature destinations
It’s a challenge, but not a utopia.
Examples to support the project’s potential:
Miami Beach
Barcelona Olympic area
Las Vegas
Calvia Beach project is generating a positive contagion
prestigious international brands:
Project location
south-west coast of Mallorca
Magaluf is located in the heart of the Calviá coastline, but is not
aligned with the first-class infrastructure of the surroundings
Luxury real estate
Palma
Golf
Marinas
5-stars hotels
Magaluf
Meliá Hotels International’s assets involved in Calviá Beach
Sol Katmandu Park
& Resort
Sol Trinidad
Sol Wave House
Sol Jamaica
7 hotels
3,000 rooms
Sol Antillas, Sol Barbados
& Beach House
Project phases
Phase 1 2012
Phase 2 2013
Sol Wave House
Beach House
Wave House Mallorca
Nikki Beach Mallorca
Other refurbishments
Sol Katmandu Park & Resort
Beach House (2nd building)
Total investment: € 81.2 million
(MHI & partners)
Phase 3 & 4 2014 onwards
Sol Jamaica/Trinidad transformation
Sol Katmandu new facilities
Pedestrian street
New retail and leisure supply
Refurbishment of other hotels t
Sol Wave House
Refurbishment of Royal Beach hotel to become the Sol Wave House (first ever Twitter
Experience Hotel) + Construction of a surfing centre by the Wave House brand
Spectacular leisure area open to and facing the sea on the ground floor (3 access points)
Transfer of public hotel areas to the first floor
Hotel rooms + aparthotel
Huge potential of condo-hotel sales in the near future
Beach House
Refurbishment of Mallorca Beach hotel to create the Beach House (ME Mallorca in
2014) + Construction of a beach club operated by the Nikki Beach brand
Luxury and high-energy lifestyle hotel and beach club focused on a superior target market
(vs. 3 star low profile former hotel)
Improved green areas to create a better quality image
Increased value of privately owned units
New Nikki Beach club to change the traditional F&B business in Magaluf
Sol Katmandu Park & Resort
Refurbishment of Sol Magaluf Park hotel to create the Sol Katmandu Park & Resort +
Theme park (Katmandu Park) integration
Transformation of obsolete 3 star hotel into a 4 star integrated theme resort.
In 2014:
Introduction of new amusement attractions around the property (roller coaster, 4D concepts, etc)
Upgrade and theming hotel rooms and public areas
Next steps
•
Demolition of Sol Jamaica hotel to be replaced by a newly built 4 star condo-hotel (change
of use), with new commercial facilities and parking
•
Total transformation of Sol Trinidad hotel into modern tourist apartments – condo-hotel
(change of use)
•
Conversion of the Avenida Magaluf into a pedestrian boulevard to promote a new,
superior quality commercial offer
•
Progressive incorporation of nautical, golf and sports tourism
First results – early wins
Hotel business achievements
Attraction of new markets and customer segments
Higher income, prices, occupancies
Higher online bookings
Elimination of all-inclusive formula
+32% incomes in 2013
(vs.2012)
Social and economic achievements
+300 new jobs
Improvement of the urban and social landscape
Positive response from the community (penetration of local residents into the resort)
HNWI entering Magaluf for the first time
Excellent response from yachting segment
Growing interest from international investors, high-quality leisure brands and the gaming sector
Institutional achievements
Honorary Plaque for Tourism Merits, from the Spanish Government
Best practice project used by Spanish authorities
Academic recognition as a case study for Business Schools (Harvard-Deusto, ESADE)
Higher corporate credibility to transform and create tourist concepts
Measuring the social impact of Calviá Beach project
Innovative measuring model* to ensure and strengthen the maximization of shared
value, by annually evaluating impacts on 3 dimensions:
Influence on the bottom line
through improvements in
processes, capabilities and
efficiency
Business increase through new
revenues, products, segments and
markets
Efficient risk management through
resource allocation, credibility
generation and efficient regulations
management
* using the SEres Foundation RSC2 methodology, based on McKinsey’s Sustainability Compact
Maximize creation of shared value
Innovative products and experiences to increase
satisfaction and loyalty and upgrade the tourist profile
Guests
Increase the
reputation/image and
reposition the destination
Destination
Perception
Employees
Transformation of the
destination to increase
quality of life, property
value and local business
Residents
&
Neighbour
Businesses
Suppliers
Public &
Private
Partners
Support and investment to improve environment,
surroundings and quality of infrastructures
Higher personnel
qualification, stability and
salaries to improve job quality
New infrastructure and
offer to boost local trade
“The Calviá Beach project is now part of our history: in the 60's, we had the
opportunity to participate in the birth of this destination and today we are
living the dream of giving Magaluf a second chance“
Gabriel Escarrer
Vicechairman & CEO of Meliá Hotels International