ParcBit in Palma, where there is a high concentration of businesses. | Archive

According to a study by economists at Unicaja Banco in Malaga, the Balearics have the highest density of businesses in Spain. In 2021, there were 98,120, equivalent to 83.6 per 1,000 inhabitants. In second and third positions were Madrid and Catalonia with 81 and 80.2 respectively. The national average was 71.

The study explains that there has been information to compile this business density ratio since 1999. During this period, the Balearics have always been among the regions with the highest business density, only surpassed by Catalonia between 2011 and 2014.

Tourism is a factor in this. "The business weight of the tourism industry (accommodation, catering, transport and recreational and entertainment activities) in the Balearics is around 15%, four percentage points higher than in Spain as a whole. With the exception of accommodation and air transport, the rest tend to be mostly micro-enterprises, which results in a higher business density ratio."

Having such a high density is "always positive for the economy, as is the case in the Balearics". "The average size of businesses and the existence of large companies are also relevant. That there is a greater concentration of companies linked to tourism activity is evidently good for the economy of the Balearics in terms of levels of employment and per capita income." However, if there are "extraordinary situations" that affect the tourism sector, such as the pandemic, the negative effects on the economy are felt "with greater intensity".