Exporters in the Balearics fear that they will be harmed if the UK opts to leave the European Union.
The president of Majorca's Chamber of Commerce, José Luis Roses, says that there is a great deal of concern among exporters. The departure from the EU would result in the immediate fall in value of the pound against the euro and that would mean a drop in the spending power of tourists coming to the island. (Tourism, it should be noted, is treated as an export for balance of payments reasons.)
To this, Roses continues, have to be added food, drink, oils and footwear sectors for which there would be increased administrative costs and the need to re-establish former customs' systems.
"It will be very negative for the Balearic and European economy and will affect more than 200 businesses on the islands."
Exporting companies and the Chamber agree that the drop in value of the pound will be in the region of 12%, though there are some forecasts which suggest 20%. "This will distort the entire export business strategy to the UK as well as affecting the tourist industry. The Balearics will become more expensive for what is the second largest tourist market behind Germany."
Joan Company, the president of the Asaja agricultural businesses association and also the CEO of the Esplet Sa Pobla cooperative, believes that the export of potatoes is already being affected by talk of Brexit. He hopes that, as happened with the Scottish referendum, the tide will turn and that there will not be a vote to leave. "Here, we have everything to lose."
Roses also notes that the property sector will be impacted because of the fall in the value of sterling. "We will lose everything."
Last year, the value of exports to the UK (excluding tourism) was 46.3 million euros, and in the first quarter of 2016 it was 8.6 million.
5 comments
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I suppose the usual cries of being ruined by drought or rain wear a little thin after a while but you know what,we have lots of spuds in the UK,every variety you can think of,we can get by very well without Majorcan spuds,seek new markets.
So the pound will devalue - again. Always does this in summer for some reason. I could say to rip off British tourists who come to Europe. I remember when the euro was introduced in 2002. The pound was fixed at 66 pence to the euro. Never since then has it achieved that again. And don't forget when it went down to £1 = €1. Anyway how can just talking about Brexit affect the Sa Pobla potato growers. They complain about everything - no rain, too much rain, too hot, too cold .........
Did Messrs Roses and Company agree with the tourist tax to fleece UK tourists? Yes if vote out the Uk would leave the E U 's"common commercial policy".this would restore UK govt.power to set its own trade policy. Perhaps the Balearics have had it "easy" and got complacent with the attitude the tourists will pay. Welcome to the real world!
What a load of hogwash. So if it costs more the tourists won't come here, - is that why you've added a tourist tax stupid !It's not certain that the £ would devalue much, if at all. If these spud-pullers were businessmen they'd know that it's the present uncertainty causing the £ to falter a little."We've lost everything" - ha.
When I am in UK, in Lincolnshire. I would be delighted to see Mallorcan Potatoes .I do not see any of Mallorcas' produce.