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Intra-EU flights can be quite cheap. I found a flight from London Luton airport to Ibiza with Thomsonfly for £13.65 one way... Airport tax was £20, so round trip it added up to about £68 which = $140.49CAD. Not too bad.
Once you get to the Island it's a whole different story if you intend on doing a copious amount of clubbing -- cover being €20- €60 at the major clubs, water costing ya €8, and mixed drinks up to €18, so you do the math.
In San Antonio (aka drunken British football hooligan town) you can find cheap places to stay (I've seen from €17/night)... and really how much time are you going to spend in your hotel when you're in paradise? All ya need is a safe secure place for some minimal sleep and shower. Opportunity cost applies here -- spending less on your accommodations means you have more to spend having fun on the Island! 
ibiza-spotlight.com has forums with various threads on this topic mater, so I suggest ya check em out. People off all sorts of budgets are able to experience Ibiza and bring back lasting memories. And ya sunsets are still free! 
I'll be there for 7 days in September -- just in time for the Armada closing party @ Amnesia on Sept 12th! 
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Surreal
Universal Religion
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