TW
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We quite naturally complain about the fall in value of sterling locally because it has hurt the buying power of British tourists and of course pensioners who receive an income from Britain. But the fall in value of sterling just might save the British economy. Factory output and orders have risen dramatically over recent months and Britain continues to welcome a record number of tourists. In fact London was the top holiday spot for Majorcans this bank holiday week. A low pound is obviously good news for British exports and at the same time makes imports more expensive. A low pound is good for Britain.

Now obviously the drop in value of sterling is causing concern in Spain because British tourists are the biggest spenders and any drop will be felt quite hard. This will probably lead to an increase in people taking all-inclusive breaks and also cheaper holiday destinations such as Turkey could become more popular.

During the big financial crisis of the 1970s the value of the pound crashed against the peseta, meaning that British tourists would have less money. The Spanish government reacted by devaluing the peseta so that British tourism would have the same spending power. One thing's for sure, the value of sterling is always going to be key both for the Balearics and Spain as a whole.