Jason Moore07/12/2016 00:00
TW
1

Well, we were all wrong. Brexit has had no effect on the Balearic economy despite the slide in the value of the pound. The local government is doing its best to show that it is business as normal despite the fact that Britain looks set to leave the European Union in the coming months, something which will have a direct impact on both tourism and British residents living on the island. Brexit has hit the real estate market; after the referendum result there was a fall in the nunber of homes on the island which were being sold to Britons. The drop in spending power of British tourists caused by the fall in the value of sterling also had an impact on shop and restaurant takings in areas of the island popular with British tourists.

So, perhaps the government should mind its words. During the World Travel Market tourism fair in London last month the British travel industry said that so far Brexit had not hit bookings. But it must be remembered that January, February and March are the peak times of the year when Britons book their summer break so it is still early days. Brexit is obviously going to hit the local economy. There is little chance that it will remain unaffected. I doubt that there will be a fall in the number of British tourists visiting these shores next year but they will have less money to spend. Brexit is bad news for the Balearics whatever the government claims.