Safe haven

THERE is plenty of bad economic news about in Spain at the moment but the Balearics appears to be doing much better than other parts of the country. The Balearics is the only place in Spain where the jobless rate has actually fallen and there are signs that consumers are more confident here than elsewhere in Spain. The tourist industry will always put a shine on these islands and at the moment it appears that the islands have escaped the cold winds of recession which continue to blow across the mainland. However, the Balearic government mustn´t drop its guard. It is vital that they work closely with the tourist industry and that holidaymakers receive a warm welcome. The forecasts for this summer season are good. Hoteliers in Palmanova and Magalluf have called on tour firms to stop selling because there are already fears of overbooking in May. This is all great news. It appears that a record number of British tourists could be coming to our shores this summer. This should certainly lift the local economy. But the Balearics should also learn from the lessons of the past. Overspending is not an option. The Balearic government are right to bring in major austerity measures and keep public spending under control. Many of Spain´s regions have enormous debts which they are having trouble in paying. While these islands appear to be shielded for now the future will bring important challenges.