The gross domestic product of the Balearics will slow down to 2.4% in 2026, according to regional economic growth forecasts prepared by the Hispalink research network this week. And one of the most alarming findings in the report is that the service sector, which grew by 4.3%, is predicted to grow by just 2.9% this year and 2.3% by 2026.
That should surely set some alarm bells ringing because the service sector is driven, for the most part, by tourism. The bars and restaurants are complaining of a sharp drop in revenue while hoteliers have admitted that current occupancy levels are some 10 percent below normal for this time of year. Now, the tourism debate has become a complicated one from rising prices to protests and climate change.
But nevertheless, while much is being spoken about and spent on trying to combat the impact of climate change, the very opposite is being done with regard to the changing tourist industry. While sadly climate change is to a great extent beyond the realms of the Balearic authorities, shoring up, protecting and defending the main engine of the local economy, tourism, is not and it can be resolved. But with bold and decisive actions we’re not seeing or hearing and for that a price may be paid.