The Balearic Islands Trade Observatory highlights that in the third quarter of last year, tourist spending in the trade grew by 6.6% and the annual variation was 11.4%.
Sales were activated in December 2024 and that month recorded the best sales figure for the period since 2005.
Sales in the commerce sector were activated in December with the best figure for this month since 2005, and the year 2024 closed in positive with an average variation of 0.5%, according to data collected by the Balearic Islands Trade Observatory for the fourth quarter of last year, based on data from the National Statistics Institute (INE) and the Balearic Islands Statistics Institute (IBESTAT).
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Trade sales close 2024 with a positive variation of 0.5% and the sector attracts 931.9 million euros of tourist spending
Likewise, the retail trade index registered a positive variation of 1.6% in the Balearic Islands, compared with 3.5% for the whole of Spain. If service stations are taken out, the variation of this index is 1.1% for the Balearic archipelago and 3.4% for the national territory.
The report highlights that tourist spending in commerce in the third quarter, the latest available data, grew by 6.6% annually and was 931.9 million euros, 8.3% of the total. Compared to the previous year, tourist spending in commerce grew by 11.4%.
The director general of Enterprise, Self-Employment and Trade, José Antonio Caldés, and the director general of Economy and Statistics, Catalina Barceló, presented the report at a press conference.
Caldés indicated ‘that we have to be happy and positive because sales and tourist spending in commerce have grown. Particularly noteworthy is the tourist spending in trade as we have one of the best data in the historical series and we have grown above the year 2023. The average change in sales of 0.5% also shows a positive trend. In general, we observe a highly favourable trend’.
For his part, Barceló explained that ‘we closed 2024 with the highest sales figure for December since 2005 according to the INE’s Retail Trade Index (ICM). For the year as a whole, we continued to grow by 0.5% compared to 2023, as the year recorded a high increase of 5.8%. This growth was concentrated in the second half of the year, driven by both tourists and residents. In addition, employment registered a record figure of almost 50,500 members, highlighting the dynamism in Eivissa’.
As far as expectations for business performance in the coming quarter are concerned, traders foresee an adverse period for the first three months of 2025.
According to the affiliation data for 2024, the Balearic Islands registered 50,448 people registered with Social Security, 0.4% more than the previous year. By islands, the annual variation in enrolment was 2.3% in Mallorca, 1.8% in Formentera, 0.2% in Eivissa and – 0.8% in Menorca.
As a novelty, the Trade Observatory has analysed the rental market for commercial premises in its report for the fourth quarter of 2024. To this end, the evolution of the number of new contracts formalised in the period 2000-2024 has been analysed. According to the data, this indicator evolves in general downwards, although three well-defined phases can be identified: the first one shows a strong dynamism that is interrupted by the great recession of 2008. The second phase, which lasts until 2020, shows fluctuations but a downward trend. Finally, with the coronavirus pandemic, there was a significant reduction in the number of contracts formalised, especially in Palma and the Part Forana de Mallorca. In recent years, the lowest figures in the whole series have been recorded.
On this matter, the director general of Economy and Statistics stressed that this is ‘a pioneering study in the Balearic Islands, based on information provided by the IBAVI since 2000’. Barceló stressed ‘that new contracts are trending downwards, with this fall intensifying since 2020. By area, Palma is the one that registers the most intense drop, along with Part Forana. We see that this reduction does not imply a loss of activity, according to the ICM and sector affiliates. Changes in the behaviour of buyers, the growth of online shopping, the reduction of affordable supply or the problems of generational changeover could help to explain part of this downward trend’.
He added: ‘Palma has accounted for 54% of the contracts in the Balearic Islands over the last 25 years. As for the regions, the differences are notable. The average income in the Balearic Islands is around 1,800 euros, ranging from 2,400 euros in Palma to 1,000 euros in the municipalities of the Pla de Mallorca’.
The presentation of the report can be seen at the following link: https://view.genially.com/677fbfa1ee6a85cd2927310d