Big spending British tourists are giving the Majorcan High Street a lift as the pound sterling continues to rise against the euro.
According to the El Corte Inglés department store, which has two branches in Palma, in the first quarter of this year the British spent 20 percent more in their stores and are now in second place just behind the Germans, as the foreign nationality which are the biggest buyers. And what is more a spokesperson for El Corte Inglés said that the British were on course to become their best foreign buyers after a recording breaking summer sales period.
This is in sharp contrast to five years ago when the British trailed the Germans, Russians, Swiss, Norwegians, Swedish and French. The research from El Corte Inglés is based on credit card sales but they are convinced that the British are also some of the biggest cash buyers as well. The change in fortunes of the British market is obviously based on the spectacular rise of sterling against the euro which has gone from being almost level in value to 40 percent more.
The upbeat trading report is also good news for other stores on Majorca who have been struggling against the recession over recent years.
The uncertainty in Greece and the good performance of the British economy, means that no major change is expected in the value of the euro against sterling in the coming months.
But it is not only the High Street which is benefiting. Home sales to British residents are also on the rise. First Majorca, the leading local estate, said in their report for last year that the British were now their biggest buyers, a trend which is expected to continue this year as well.
While the crisis in Greece may bring uncertainty for the single currency, every cloud has a silver lining for Majorca.