NEWS

Concerning the Brexit and its impact in the Balearic Islands( Short term effects)

14Mar

Derecho Inmobiliario y cuestiones Fiscales

The Brexit is on the move and 2017 will be witness to different important episodes of the process: the official beginning of the withdrawel from the EU, the beginning of the period of transition and, at the end of the year, the foreseeable depreciation of the sterling pound, in particular if bileteral agreements are not signed between Great Britain and other nearby surrounding countries. Of the 13 million tourists received each year in the Balearic Islands, approximately 3,5 million are British (United Kingdom is the second country with most tourists arriving in Spain). Today, it cannot be confirmed that the Brexit has caused effect on island tourism. In fact, the Baleares is the Autonomous Region leading the economic Spanish growth in favour of the prosperous tourist sector. What reasons lead us to belive in being optimistic and to think that the impact of the Brexit will be weak or non existant on the economy of the Balearic Islands at short term?

  • Increase of 12,3% in the reservations at national level by the British. It is also foreseen an increase of 3,8% in the average expense by the British tourist and that of 6,5% for expenses per day.
  • The existance of qualified professionals both Spanish and English who will do all possible to minimize the effects of the Brexit on the economy of both countries and channel their efforts towards the search for favourable bilateral agreements.
  • The loss of purchasing power of the British has not been seen in an obvious way in tourist packages, insomuch as the sterling pound has  depreciated 11%, whist the holiday packets have only changed in price in 5,4%.
  • The elimination of tourist tax is planned, in spite of continuing with airport and port taxes and the existence of roaming.

Although the effects at short term will be almost non existent, the effects at middle/long term will be those creating more importance. In our next entry we will study in depth what these effects may have at middle/long term and the repercussions of same in the Balearic Islands. Please remember you can contact us at our Lawyers office in Baleares by telephone on +34 971228066 or at any of our offices in: Palma, Sóller, Ibiza, Port d' Andratx and Portals Nous.

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