The tourism continues to drive the Balearic economy with an increase of 12.3% in total expenditure up to November 2024, reaching 22,084.7 million euros, according to the latest report of the Economic Momentum of the Balearic Islands, published by the Directorate General of Economy and Statistics. This growth is accompanied by a rise in the average expenditure per tourist and a greater influx of visitors.
More spending per tourist and higher visitor numbers
Spending per person in the archipelago rose by 7% to 1,198 euros. Likewise, the average daily expenditure per visitor has increased by 7.7%, reaching 188 euros per day. These figures consolidate the upward trend in the tourism sector, which has recorded an increase in visitor arrivals of 18.5% in November 2024 compared to the same month of the previous year. In total, the archipelago recorded 117.6 million overnight stays, an increase of 4.3%. In addition, the number of passengers arriving by air also grew by 5.6%, confirming the importance of air transport in connectivity and tourist mobility in the islands.
Service sector drives economic growth
The report also highlights the performance of the services sector, which recorded an increase of 6.8% in year-on-year terms. Within this segment, hotels and restaurants showed the highest growth, with a rise of 25.4%, while commerce experienced a slight drop of 2.8% in November. In construction, residential building has maintained a positive trend. In the third quarter of 2024, housing starts increased by 12.3%, while housing completions grew by 4.2%.
The labor market and inflation in the Balearic Islands
The Balearic labor market closed the year with record enrollment figures. In December, the number of workers registered with Social Security reached 475,387 members, representing an increase of 3.4% over the previous year. The services sector, which employs 80% of those affiliated in the Balearic Islands, leads this growth with an increase of 3.8%. As for the evolution of prices, the Balearic Islands recorded a year-on-year inflation rate of 3.4% in December, exceeding the national average of 2.8%. Core inflation, which excludes energy and fresh food, stood at 3.2%, also above the national average of 2.6%.
Economic outlook for the Balearic Islands
The report highlights that domestic consumption continues to be a key driver of Balearic GDP growth, offsetting the 54% drop in foreign investment recorded up to the third quarter of the year. At the industrial level, the sector has experienced a fall of 2.6%, in line with the national average of -3.4%, with a negative impact on the production of non-energy goods.
