Covid-19 crisis lockdown pushes Spain’s holiday islands Mallorca and Ibiza towards recession

UNCERTAINTY: The Balearics are facing “a completely atypical tourism season”, the business confederation president pointed out CREDIT: CAEB Twitter @CAEB

THE Covid-19 crisis has pushed Spain’s holiday islands Mallorca, Ibiza, Menorca and Formentera towards a recession, the CAEB Balearic Business Association Confederation says.

The latest CAEB report concludes the Balearic economy shrank by 4.5 per cent in the first quarter of the year due to the halt in business activity under lockdown, as well as economic uncertainty at the beginning of the year.

The confederation described the archipelago’s economic decline as unprecedented, highlighting the fact the services sector had been particularly hard hit.

It also predicted worse for the second quarter.

CAEB president Carmen Planas pointed out the Balearics are now facing a “completely atypical tourism season,” and one which is “full of uncertainties.”

She said the confederation therefore appealed to regional entities to follow polices to “mitigate the negative impact in the short-term, and in parallel, lay the groundwork for the reorientation of the destination in the face of the permanent changes anticipated.”

Planas also expressed the view that the maintenance of ERTE temporary suspensions of job contracts should be dependent on the existence of a coronavirus vaccine.

“While we do not have a vaccine we are risk and the ERTEs have to continue being a necessary tool so our companies do not go under and to protect employment,” she said.

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Written by

Cathy Elelman

Cathy Elelman is the local writer for the Costa de Almeria edition of the Euro Weekly News.

Based in Mojacar for the last 21 years, Cathy is very much part of the local community and is always well and truly up on all the latest news and events going on in this region of Spain.

Her top goals are to do the best job she can informing the local English-speaking community, visitors to the area and the wider world about about the news in Almeria, to learn something new every day, and to embrace very new challenge this fast-changing world brings her way.

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