The Balearics and Spain in general can no longer afford to rely so much on tourism.

The Balearics and Spain in general can no longer afford to rely so much on tourism. | - EFE

Humphrey CarterPalma25/11/2021 10:35
TW
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I think one important thing we have all learnt from the pandemic is that the Balearics, not to mention many parts of Spain as a whole, are far too dependent on the tourist industry and Spain could be about to pay the price.

Yes, there was a notable uptick in tourism during the second half of this year, but was it enough?

Anger over the state of the economy is now starting to spill out into the streets as the confidence in quick recovery starts to shrink.

Hundreds of auto workers protested in Madrid on Monday to draw attention to the problems the sector faces, while in the southern city of Cadiz metalworkers have been on strike since mid-November to demand wage increases.

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As Christmas approaches, truckers have threatened to go on strike to protest against rising fuel prices.

The government had initially forecast the economy would expand by 9.8 percent in 2021, one of the highest figures in the eurozone.

But in April it slashed its forecast to 6.5 percent, as Spain was hit by a third wave of Covid-19 infections. Most economists, however, believe growth will not surpass 5.0 percent this year.

Analysts blame soaring energy costs, supply chain disruptions and an over reliance on tourism for the slower growth in Spain, so perhaps now is the time to seriously start diversifying in the Balearics.