Mallorca Bulletin

LOCAL ECONOMY FEELS THE PINCH

Yet more evidence of a worrying economic situation in the Balearics with a report from business leade r s w h i c h i nd i c at e s t h at t he l o c a l economy is showing signs of “fatigue” with growth below the national average in the all important second quarter. The number of new jobs being created has also fallen. The report comes after indications which suggest that even though a record number of tourists are coming to the islands they are spending much less. Bar and restaurant owners have reported that their takings are down by 20 percent. The Confederation of Balearic Business Associations (which represents all big employers) said that the local economy expanded by 2.8 percent from April to June compared to the national average of 2.9 percent. The local economy had started the year well w ith growth in the first quar ter of three percent. There are fears that the downward trend will continue in the third quarter despite hoteliers saying that hotels will remain open longer than usual. T he m i x e d e co no m i c p i c t u r e a l s o comes at a time when some local residents are protesting at too many tourists coming to the islands. A “record season” would generally lead to massive economic growth but on this occasion the spending power of tourists is starting to cause concern even though they came in massive numbers. Seguir leyendo