Record summer seasons, tourists allegedly spending more per day, upgraded hotels and the most expensive accommodation rates in the country - it all sounds rosy. But away from offices of statistics and government spokespeople and the like, talk to your local cabbie or go round the shops and it is a different story.

Yesterday it was confirmed that there has been an 11 per cent drop in the number of cruise ships visiting Palma this year. The small to medium-sized retail sector is complaining of a poor first six months of the year, with the majority of traders inside and out of Palma maintaining that sales are down on last year. They have their fingers crossed that the summer sales give their takings a lift.

Restaurant and bars in Palma have also seen a general slowdown in business, especially those in residential neighbourhoods which are used to regular customers from the local community.

Sources for the retail sector say that consumer confidence appears to have peaked in 2013 and has been slowly contracting ever since. But they cannot put the finger on why.

Perhaps the ongoing political uncertainty in Spain with a minority government in Madrid and the post-modern left-wing coalition in a bit of a muddle halfway through its legislature has knocked consumer confidence. I wish I knew. But while some are getting very rich, many are still struggling.

Comments

To be able to write a comment, you have to be registered and be logged in.

* Mandatory fields

MelB / Hace over 4 years

Sorry, for paroles read parlous.

+-

MelB / Hace over 4 years

The Spanish economy, being part of the EU federal state, is built on a lie. Eventually the true financial position of this greedy, manipulating block will become apparent and the fallout from this will ruin many. The common thinking person is very well aware of this paroles position, so tourists do not overextend themselves and business people are not taking unnecessary risks. Hence the lack of economic growth.

+2-

S. / Hace over 4 years

With the Euro at 1.08 to one Pound, Tourists are not spending. They remain as PRISONERS of the ALL INCLUSIVE Hotels.Therefore, all self employed business owners, are getting the effects of reduced spending. Also, Tourist taxation, does not bode well, when arriving at a Hotel.

+5-