The Balearic regional government is moving ahead with a pilot program to test a 32-hour workweek, with the goal of encouraging island businesses to participate in a more flexible schedule. Starting this autumn, the plan consolidates work into four days per week, a shift expected to give employees more time for life outside work while maintaining output. The announcement was made by President Francina Armengol during a visit to a major tourism company on Thursday, highlighting the project as part of broader efforts to revitalise the local economy and improve quality of life for residents and workers alike.
To support the initiative, the Regional Government has allocated a budget of two million euros and hopes to reach as many as thirty participating companies. The plan is described as precautionary, designed to ensure that workers have greater balance between professional and personal commitments — a priority across many sectors in the islands, notably tourism and services. The socialist leadership frames the measure as a way to empower people to live fuller lives without sacrificing job stability.
Participation in the pilot is open to all company types, with a rule that at least five employees must benefit from the reduced hours. Each company receives an initial grant of 15,000 euros to cover early-stage costs and transition expenses. The financial structure also includes ongoing subsidies: 5,000 euros in the first year and 2,500 euros in the second and third years for every worker who takes part in the program. The scheme caps total assistance per company at 200,000 euros, ensuring a balanced distribution of support across participating businesses.
The president was joined by industry leaders during the announcement, including the chief executive of Hotelbeds, a prominent bed-bank employing around 1,400 workers on the islands. Hotelbeds is described as a cornerstone in tourism innovation, with a global footprint in 140 countries while maintaining deep roots in Mallorca. The executive stressed that the business employs roughly 40 percent of its workforce on the island, underscoring the local impact of the region’s tourism ecosystem.
In attendance were Carlos Muñoz, the commercial director at Hotelbeds, along with Jose Maria Tab, the director of innovation. Also present were Francina Armengol’s team and regional representatives, including Catherine Cladera. Tourism ministers Iago Negueruela and Andreu Serra, as well as island councilors, observed the event, signaling cross-government support for the pilot and its potential to reshape workforce practices in the hospitality and services sectors.
Pricing Pressures and Growth Trends
Hotelbeds has continued its growth trajectory since the low point of the pandemic, expanding its workforce globally by about a thousand employees last year. This recovery comes as the company emphasizes resilience and operational efficiency, even as market pricing experiences fluctuations. The Bed Bank’s leadership notes that the current hiring momentum reflects broader industry demand and strategic investments in technology, data analytics, and customer service capabilities.
Looking ahead to the upcoming tourist season, Hotelbeds’ leadership anticipates stronger and more stable results in the region compared with the previous year. They point to higher occupancy, improved pricing discipline, and stronger collaboration with local partners as key drivers for a healthier revenue mix. Management also stresses that the island’s appeal remains a central factor in sustaining visitor demand, with ongoing investments in infrastructure and service quality contributing to competitive differentiation among destinations in the Balearics.
Analysts and industry observers note that the 32-hour pilot could become a model for other sectors if outcomes prove favorable. The plan’s success would hinge on balancing productivity with the cost of wage subsidies, as well as ensuring that reduced hours do not undermine service levels in peak season. Regions with similar tourism dependencies may look to Mallorca’s approach as a blueprint for aligning worker wellbeing with business performance in a competitive market.
The pilot’s implementation is expected to unfold in phases, with ongoing evaluation to measure job satisfaction, retention, absenteeism, and impact on tourism demand. Local authorities emphasize that the experiment will be data-driven, combining qualitative feedback from employees with quantitative indicators such as hours worked, overtime reductions, and total compensation changes. If proven effective, the program could pave the way for more flexible work policies across the Balearic Islands and potentially influence policy discussions at a national level in Spain and beyond.