Jason MoorePalma27/10/2018 17:54
TW

The island enjoyed a relatively good holiday season, there was almost zero unemployment and tourists allegedly spent more. Then why are some people pointing to a slowdown in the local economy? It is a difficult question to answer. I would say that firstly your average Majorcan has less money in his or her pocket. The cost of living on this island is high and so are rents. If you can't get on the property ladder, which is not easy, then the booming rental market is the only solution; and rents are high.

Secondly, there is a concern that Majorca is not attracting the right sort of tourist any more. I don't know what the right sort of tourist is but there is concern over the spending power of tourists. Brexit is also a concern. Many may try and sweep these concerns under the carpet but let' s face it Britain is the second biggest holiday market for the Balearics and one of the key investors in the local economy.

Brexit fears have meant that the local real estate sector has deep concerns over the state of the British market. Also, there are fears that sterling could dive even further against the euro in the run-up to the divorce. So, there are reasons to be concerned about the Balearic economy. I doubt that Spain or the Balearics will enter recession but there is certainly going to be a slowdown. The local authorities should take this into account and underline the fact that next year is going to be a difficult year. Also, next year is an election year.