SPAIN - Economy
President, President of the Confederation of Business Associations of the Balearic Islands (CAEB)
Bio
Carmen Planas holds a degree in pharmacy from the University of Navarra, a degree as a specialist pharmacist in clinical analysis from the Ministry of Education, a master’s degree in hospital management and administration from ESADE, and an executive master’s degree in hospital and healthcare company management from EADA, among other qualifications.
According to the Institute of Statistics of the Balearic Islands (Instituto de Estadísticas de Baleares), we closed 2023 with a 4% GDP growth, a significant achievement considering the 20% drop during the Pandemic. With 18 million tourists, we have regained 2019 activity levels, but with a 4% decline in productivity and competitiveness among Balearic companies, resulting in lower per-capita income. At CAEB, our challenge is to boost the productivity of Balearic businesses to improve overall welfare. We need to diversify beyond sun and beach tourism by promoting activities such as sports, culture, and gastronomy, attracting different audiences and distributing tourists throughout the year. As the president of the Balearic Union of Health Entities (UBES), I emphasize the value of our top-tier public and private healthcare systems. High quality healthcare is a significant advantage for tourists, ensuring they receive excellent care in case of emergencies, unlike in lesser-developed destinations. We also face challenges with overcrowding during peak seasons. Addressing this will alleviate pressure. The government has a strategic project, involving public and private sector collaboration, to develop a 20-year vision with necessary changes to achieve common goals. CAEB stresses the importance of decisive action in both the public and private sectors to reach a consensus on our future vision. We need to shift focus from volume to value, emphasizing quality over quantity. This means attracting other type of tourists, but ones with higher purchasing power, upgrading infrastructure, and improving hotel quality. Our vision is to create a sustainable, diversified economy providing high-quality experiences for tourists and better living conditions for residents.
Focusing on innovation, new technologies, and training is essential. With the right technology and skilled personnel, productivity can increase significantly. Training is crucial for talent development and retention. Currently, about 40% of jobs are mismatched with employees’ qualifications. We must improve vocational and university training to better align skills with jobs, enhancing productivity. We are also committed to continuous improvement and adaptation to new technologies and innovations. Upskilling and reskilling our workforce is vital for maintaining competitiveness and fostering economic growth in the region. Public–Private collaboration is crucial, especially with the housing shortage affecting worker attraction. We support training projects, public or private, to address the shortage of professionals such as doctors. This issue is national, but worse here due to unaffordable housing for incoming workers, including doctors and nurses. We also advocate for dual vocational training, where individuals receive training while working in a company, often staying on afterward.
The Pandemic caused a halt, highlighting our heavy reliance on tourism, which makes up nearly 40% of the GDP. This dependency centers our economy around the services sector. We must transform our model by investing more in innovation, technology, and industry, which are growing in the Balearic Islands. While tourism remains dominant, a transformation is necessary for increased productivity. We need to diversify, promoting our strengths in sports, nature, gastronomy and culture.
CAEB launched a Circular Economy Commission to ensure compliance and awareness of the sustainable development goals set by the UN’s 2030 Agenda. CAEB aims to pioneer the shift towards a circular tourism system, setting benchmarks in Europe and worldwide. In line with sustainable development goals, we are actively promoting awareness and education on regenerative tourism. We urge every sector to adopt practices, such as recycling, and to embed sustainability into their operations. This shift is gradually becoming intrinsic to companies’ DNA. We advocate for regenerative tourism that enhances our islands while supporting growth. It is crucial that visitors understand our commitment to being a circular tourism destination. The circular economy guides us in reducing plastics, managing waste, and improving businesses practices. We highlight diverse projects promoting circularity across sectors, including construction, energy, and sustainable fashion, actively showcasing these initiatives.
Our roadmap remains unchanged for the coming years: we aim to foster wealth, employment, and societal well-being. Our transition to a circular economic model hinges on elements such as education, technological investment, innovation, and sustainability across sectors. Furthermore, CAEB will actively support the implementation of the Balearic government’s social and political pact for sustainability. It is essential that this pact represents all of Balearic society—businesses, political leaders, and local communities alike. CAEB is fully committed to this initiative, advocating for comprehensive solutions to safeguard our way of life.
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