THE Confederation of Balearic Business Associations said yesterday that the financial forecast indicates that the Balearic tourist industry will generate investments of just over one billion pesetas this year, posting a growth of four percent, despite the fact that the number of tourists will be down on last year. The President of the Confederation, Josep Oliver, said yesterday that at the end of the day, the summer season is not going to be as catastrophic as initially thought and pointed out that, although it appears to have gone unnoticed, the winter season was a significantly profitable one. During the first financial period of the year, the number of tourists fell, but profits rose by 3.8 percent indicating that tourists are spending more and greater spending power in the tourist industry will compensate for the drop in visitors. Looking at the global picture, gross national output has slowed down this year, but Oliver said that the figures are by no means negative, but in fact indicate that the economy is starting to stabilise. With regards to one area of the market which is struggling, the hotel sector, Oliver said that business people are well aware of the affects price has on the market, echoing what the Federation of Spanish Travel Agents said last week when the Balearic hoteliers were blamed for the slump in bookings for putting their prices up.