On 16 September 2026, the economists Miquel Puig and Guillem López Casasnovas on Eivissa presented a Balearic version of the Informe Fènix The analysis concludes that the Illes Balears have made significant economic gains in recent years, but this growth has not translated into a broader improvement in the living standards of the resident population. While gross domestic product and asset values are rising, the real per capita income situation of many households is deteriorating; at the same time, public services and the affordability of housing are coming under increasing pressure.
The authors identify the structure of the highly tourism-dependent economic model as the main cause. Growth is driven primarily by low-productivity jobs with relatively low wages. This boosts turnover and property prices without increasing residents’ disposable incomes to the same extent. On the particularly constrained islands of Eivissa and Formentera double or triple insularity magnifies these effects: logistics, limited land and restricted supply further increase the cost of everyday life.
The report points to tangible effects on daily life: rents and house prices are rising faster than many salaries. Public services are seeing reports of longer waiting times and reduced accessibility. The imbalance is also evident in a rise in the number of people without secure accommodation, including low-income workers. The authors view these developments as symptoms of a model that grows the economy overall but exacerbates inequality.
In the political debate in the Balearic Islands, various responses are being discussed: dedicated housing programmes for workers, tighter regulation of the conversion of homes to profit-oriented uses, changes to levies in the tourism sector, and measures to boost productivity beyond mass tourism. The report itself recommends systematically quantifying the regional effects to better assess the effectiveness of potential measures.
The study distinguishes observation from assessment: findings on GDP, property prices and pressure on services are based on available indicators and documented developments; broader claims about social risks and distributional effects are presented as assumptions and scenarios, whose realisation depends on wage trends, regulation and the future direction of regional policy. The central challenge remains bringing value creation and quality of life back into balance in the Illes Balears.
Editor: Daniel Mayer (Article created with AI assistance).