Latest figures from the National Statistics Institute (INE) show that consumer spending in the Balearics decreased by two per cent to an average of €38,284 in 2024. No other region of Spain registered a decrease. In certain regions there was a double-digit increase - 12.1% in Castile and León and 10.5% in the Canary Islands. The national average household spend was €34,044.
A key indicator in the INE figures is for spending on housing, water, electricity, gas and other fuels. The average in the Balearics was €14,310, over €3,000 more than the national average of €11,029. This was the only category for which there was increased spending.
An implication is that other spending was reduced as a consequence of the increase. For example, the average spend on food and non-alcoholic beverages in 2024 was €5,284, a decrease of 6.3% compared with 2023. Nationally there was a one per cent increase.
On clothing and footwear, the average spend was €1,494, a fall of 20.3%. For Spain as a whole there was an 8.5% increase. For restaurants and accommodation services there was a 9.1% drop to 3,075 euros. The nationwide average spend was 3,374 euros, up two per cent.
A recent report from the Esade Business School's Centre for Economic Policies pointed to the Balearics having the second highest wealth inequality in Spain after the Canary Islands. This report also indicated that the Balearics have the second highest wealth per household in the country; Madrid is number one. The richest top one per cent in the Balearics account for 28% of total wealth.
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Charles Dalrymple-ChumleyToday, that would apply to virtually any major metropolitan area in Europe. Doubtful Palma (or Mallorca in general) would be the "5th". More like 86th (?). And that's the reason foreigners are buying up properties here. It's relatively cheap by comparison, and the climate is nicer. What's not to like? Regarding tourism: Property prices here have empirically little, if anything, to do with tourism. But tourism makes for an excellent scapegoat for something that is impossible to fix. Attacking tourism might make locals feel better temporarily, but it still won't make properties any less attractive to people living in major metropolitan areas of the world. In fact, it probably would just make it more attractive. So, ban foreigners, and solve both problems (yet also create a few other much larger problems that will spark even bigger, angrier protests). But yes, Mallorca is in an excellent position to focus on attracting a "quality" tourist over a "quantity" tourist. And if you look at the increasing quality on offer compared to the moaning and threats from a portion of mainstream tourists seeking whatever is the cheapest, that is precisely what appears to be happening.
Since the advent of air travel, the four principal cities of Europe have been London, Madrid, Rome and Paris. Within the inner circle of each city it's impossible to find a family-size property for less than seven figures. It may be that Palma is heading to be the fifth city of that elite group. Locals (and foreigners) who bought property decades ago can cash in and move out to the suburbs. Backpackers and budget conscious tourists will go elsewhere and more upmarket visitors with cash to spend will take their place. Restaurants, stores and suppliers will thrive on less customers but with higher spending. If this is to be the future, I for one will welcome it. What's not to like?