Major Spanish bank forecasts rise in tourism in spite of Brexit
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Reassuring bank confidence
While many business sectors and the EU Parliament are still smarting and licking wounds after Britain’s shock pro-Brexit vote, one Spanish bank sees more light than shadows. The head economist of the Spanish bank BBVA’s Research calmly predicts a rise in tourism for the Balearic islands of approximately 3.2% this year and 3.3% in 2017. Good news for the working sector, which will see about 46.000 new jobs created before the end of 2017.
The constant terrorist threat in former tourist favourites such as Turkey, the low fuel prices which are favourable for travel budget costs will eventually compensate for a possible loss of British tourism. In fact the Brexit is not seen as the disaster many press releases would like us to think it is – sensations be they positive, or as in this case, negative sell newspapers. Meanwhile, sensible and rational people such as this bank’s think-tank are already seeing effects that are everything else but negative for the Balearic Islands. Their message is: let the dust settle after excessively panic stricken reactions and await the negotiations between the UK and EU.
Let’s face it: banks are right now lending money to property buyers at fixed 2% for a period of 20 years, so the answer is a Euro mortgage!
Shrewd investors are already buying with Euro bank mortgages and by renting out the villa for sale in Puerto Andratx or Puerto Pollensa, two of Mallorca’s most sought after locations, they cover mortgage and maintenance costs easily. We predict a profit return of approximately 5%. The banks have paid great attention to investors and have reacted fantastically by offering such attractive terms and conditions, in order to boost the market’s upward drive.
The Balearic Government issues a positive statement
Again, the message here is also stay calm, as not much will change in the immediate future. The Brexit has not even taken place yet and then negotiations will begin. The government sees an economic rise of about 4% in comparison to the previous year and this increase will not be affected by the sad news of Britain’s probable exit. The government calls for calm and solidarity with all British citizens, residents and visitors – a gesture which shows the appreciation the Balearic people and their government have towards the Brits faithful relationship with and love of the islands.
In the long term the Balearic government also predicts all will depend upon how the Brexit is conducted and which solution will be applied regarding the UK’s future relationship with the EU. A friendly disconnection, which is generally anticipated anyway, will facilitate a similar role for the UK as Norway has maintained for years now. In this case, the government does not see any big side-effects for the Balearic economy.
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