Longer view needed to overcome “crisis”

ANY measures taken to address the current problems in the Balearic economy must look towards the next three years.
That was the message yesterday from Ferran Perello, the President of the Finance Circle, the latest of the economic bodies on the islands to meet with the Balearic President, Francesc Antich. “We have a serious problem that won't end in 2008, but will continue into 2009, 2010 and 2011,” said Perello after yesterday's meeting with the Balearic Government.

Perello said that he believed the number of tourists who would come to the islands this year would be similar to 2007.
However, he said the make-up of the tourists coming to the islands would be different from last year, as the Spanish market was weaker.
He added that tourists would be opting for lower-category hotels and would not stay for so long.
Perello said that this cut in profits could be made up by more arrivals.
Earlier in the day representatives of the Balearic Government met with members of the Majorcan Economic Circle.
The President of the Circle, Alexandre Forcadas, demanded that the Balearic Government invest in new technology and innovation to guarantee the economic future of the Balearics.

Forcadas said the future of the Balearic economy was dependent on complementing the tourist industry with technological advances.
He said the news that 5.6 percent of the Balearics' GDP came from these new technologies as “very good news”. Forcadas declined to describe the economic situation as a “crisis”, but said it was an opportunity for Majorca because it permitted the island to change its economic model, something that in other circumstances would be a “painful” process. He said it was possible to do this through “research, development, tourism, finance and by investing in health and education” in order to create a better future.