Viewpoint: A sterling effort

THE strength of the pound sterling against the euro could give Majorca a real lift and if thesterling rally against the euro continues we may be on course for a real bumper period for the island. I have always maintained that if sterling is strong, Majorca benefits. There has been a real sterling rally over the last few week as it appears that the Bank of England will have to raise interest rates to cool inflation. If you look back to the boom times in Majorca in the 1980s and even 10 years ago, it was a time when sterling was strong against the euro and the peseta. In the early years of tourism the Spanish authorities were so aware of the importance of a strong pound that they would devalue the peseta at the first hint of a drop in value of the pound. Already British property buyers are starting to return to Majorca in large numbers. This island is a great investment and if you are getting more for your pound, then it is great news indeed. As we all know Majorca is not a cheap destination and the drop in the value of sterling has meant that tourists and even home buyers have gone elsewhere. But this could change and soon. I do thing that the local authorities need to control pricing, though, because Majorca is now far more expensive than places on the mainland. Economists forecast that sterling will continue to rise against the euro as the British economy improves. This is great news for Majorca and its economy and let us hope that it continues.