Youth brand Ibiza Rocks is to withdraw from Magaluf at the end of the summer season.
The company said the decision to leave the resort in Majorca after five seasons running open air gigs at the Mallorca Rocks Hotel had been made “in order to focus on expansion plans both in Ibiza and globally”.
The Mallorca Rocks hotel, events and shops will continue to operate as normal until the end of the season, after which all trading activity will cease, the company said.
No mention was made of the media storm around Magaluf after a video showing sex acts during an pub crawl organised by another company went viral.
The Spanish Tourist Office is now in talks with Abta and the Foreign & Commonwealth Office to look at ways to encourage responsible tourism in Magaluf.
Ibiza Rocks founder and chief executive Andy McKay said: “As the Ibiza Rocks Group expands with exciting new hotel and event projects in Ibiza and beyond, our strategic agenda has changed and the time is right for us to move on at the end of the summer season.
“We are really proud of what we have brought to the Mallorcan resort of Magaluf but we are pulling out of the resort in September.
“We will concentrate on building our Ibizan infrastructure and our global expansion plan and feel this is the right movement at the right moment for the Ibiza Rocks brand.”