Understanding the Balearic Islands’ Economy: A Shift Towards Sustainability and Digitalization
The Balearic Islands’ economy is undergoing significant transformations, with the services sector representing 85.6% of the Gross Added Value (GVA), according to the Impulsa Foundation. This sector comprises 449,090 employees and 30,884 companies, with subsectors such as accommodation and restaurants, real estate activities, commerce, and health and social services. Notably, more than 40% of the economy corresponds to tourism, which has experienced a significant change in recent years.
Tourism has grown strongly after the pandemic, but with distinct patterns. As explained by the Transport Federation (FEBT), travelers now take more frequent, shorter trips, with a focus on visiting and experiencing activities at their destination. This shift has led to increased mobility, reduced traditional excursions, and a greater emphasis on local experiences. The hotel sector in Mallorca has undergone a profound transformation, with 80% of hotel floors renovated, and a focus on sustainability, digitalization, and more demanding processes.
Industry and Construction: Electrification, Digitalization, and Sustainability
The industry represents 5.5% of the Balearic Islands’ GVA, with 2,426 companies and 29,903 employees. Endesa highlights the importance of electrification, digitalization, and technological innovation in the industry. The construction sector, which accounts for 8.4% of the GVA, has seen a rise in prices, labor shortages, and an increased focus on sustainability and energy efficiency. The Association of Builders of the Balearic Islands notes that new homes prioritize sustainability, energy efficiency, and flexibility, with features like terraces, balconies, and mechanical ventilation systems.
The electrical installation sector, asinem, has incorporated digital tools and cloud work, while Construcciones Metálicas Cañellas has digitized its manufacturing plant and prioritized customer service. Solar panel installer Efiwatt has focused on local suppliers and strategic material stockpiling. The primary sector, representing 0.4% of the GVA, has seen increased mechanization, local sales, and short marketing circuits. The agricultural and livestock association HANDLE notes that the sector is now more organized, digital, and resilient, with a focus on local products and digital management tools.
Key Trends and Insights
The Balearic Islands’ economy is characterized by a strong services sector, a growing focus on sustainability and digitalization, and an increasing emphasis on local experiences and products. The industry and construction sectors are prioritizing electrification, technological innovation, and energy efficiency. As the economy continues to evolve, it is essential to consider the insights and trends highlighted by experts and associations in the region. For more information, visit Here.
Images Credit: www.menorca.info