Tourism as the main change factor in the Mediterranean Islands the case of the Balearic Islands and their future

Abstract

Tourism has ushered in major changes in the Balearic economy since 1960. This industry has become the most important economic activity on the Islands, and in recent years its share of the Balearic GDP has reached about 55%. The Balearic economy depends to a very large extent on services. The agricultural sector only contributes to 2% to GDP and is in deep crisis following Spain's accession to the EU. The manufacturing sector, contribute to around 10%. This sector, with the exception of shoes and jewellery has limited export potential. The performance of the construction sector, with a GDP share of 10%, depends on tourism development. The growth in tourism has permitted the Balearic Islands to increase their income to $15,000 per capita, which is more than 50% higher than that for Spain as a whole, although its relative magnitude in Spain has tended to decline since 1989.