AMIDST all the gloom, there appears to be some light at the end of the tunnel in Majorca with the recent rise in the value of sterling giving the tourist and properties industries some hope that the worst of the recession may be over. I have always suspected that the British market would not recover until the pound started to rise again against the euro.
Now, the pound´s increase in value has more to do with state of the euro-zone economy than signs that Britain is finally out of recession, but it is certainly good news. Two years ago, some economists were forecasting the demise of sterling saying that Britain had little option but to join the single European currency. Now, those same economists are saying that it could be all over for the euro by the end of the year.
Luckily for Majorca, sterling couldn´t have risen against the euro at a better time, just when thousands of tourists were planning their holidays. If the recent rally continues, then Majorca could face a good season and some green shoots - as far as the British market is concerned - could start appearing in the property market. Majorca needs the British market to be strong because otherwise the local economy will continue to suffer. This is the bottom line and for once there appears to be good news.