Having released information about the level of foreign investment which is being targeted towards Balearic hotels and real estate (700 million euros is the anticipated figure for 2016), the office of the national secretary of state for commerce has now also announced how much overseas investment is being made by Balearic hoteliers. The amount comes to more than 1,500 million euros over the past four years.
The investment has been directed at countries with great potential for tourism growth. These include Brazil, Colombia and Mexico. Turkey is another. By 2013 it had become the leading destination for Balearic investment.
To give an idea of where the investment has been going, and how much has been spent, in 2014 there were 254 million euros which headed towards Colombia. In 2015, 33 million euros were invested in Brazil, while this year there have been 18.4 million more euros going into Brazil as well as, for example, 57.8 million in Mexico, 19 million in El Salvador and 18.3 million in Mauritius.
The process of internationalisation by Balearic hotel groups started over thirty years ago. In 1985, Barceló became the first Spanish company to enter the Dominican Republic market, while Meliá started up in Bali.
Investment is now highly diverse in terms of destination. In the past fifteen months there have also been moves in China, Croatia, Serbia and Central America. Meanwhile, the Riu investment in Mauritius is considered to be particularly significant.
Brazil has become a priority for Iberostar, while China is a Meliá top target. Smaller hotel groups are focusing on the more established markets - the Dominican Republic, Riviera Maya and Jamaica.
All this overseas investment is having an impact on other Balearic businesses. Small to medium-sized firms involved in furniture, kitchens, air-conditioning and all types of hotel needs are benefiting. International business carried out by Balearic companies shows the highest percentage growth among Spain's regions in the past ten years.