On islands where business is easier with Berlin and Paris than with Murcia or Oviedo, the dilemma of internationalization becomes a key factor in addressing the development and growth of companies. For Balearic companies, opening up new markets and exploring new horizons, it was never a problem for their business strategy, opening up a range of possibilities and allowing them to choose between different options when it came to establishing a business management model, as well as saving on costs, improving processes, increasing competitiveness and productive capacity and ultimately, generating more profits.
The latest data on foreign investment indicates it has tripled this year compared to last year, from 138 million to 600 million according to data from the Ministry of Industry, Tourism and Trade. Although the hotel sector is the most visible when it comes to external expansion, in recent years, energy companies, services and businesses complementary to tourism activity are opening up markets beyond Roqueta.
Balearic companies have realized that competitors are becoming more global and traditional local markets are shrinking. Although some far-flung markets come with risks, the islands have a very attractive and promising market in Africa. Other communities such as Madrid, Catalunya, and the Canary Islands have in recent years made investments in the African market with significant results. In contrast, the Balearic Islands have approached this market with three hotel chains and little else.
If the opportunity to conquer the African market is not to be missed, Balearic companies must hurry, establish ties and enter value chains, thus taking advantage of growing intra-regional relations. There are great opportunities in infrastructure and there is high demand in the technology sectors and huge growth in renewable energy, particularly wind and photovoltaic.
The Balearic Islands are islands born to be international. External expansion is easier from here than any other community. From the streets of Mallorca to Menorca, you can listen to different languages and find different colours of faces throughout the year, either of tourists or new citizens. From here we have all the value to bring back the African market and other markets to our shores.