Wednesday, July 28, 2010

Men From The Ministry: Downgrading Spanish tourism

In an attempt to reduce costs, the Spanish Government has been cutting back on posts and ministries. In what might seem like a bizarre, almost perverse move, the tourism secretary of state has been, in effect, demoted, and the ministry itself merged.

There is particular anger at the move in Mallorca, whence came the secretary of state, Joan Mesquida. But setting aside any possible feelings of a Mallorcan politician having been slighted, the greater upset is reserved for the fact that tourism as a whole appears to have been downgraded in terms of importance. Now is not the time to be ... you can fill in the rest, it all has to do with crisis, recession and competition from other destinations.

While the move does seem strange, to Mallorcan hoteliers and politicians, is it really that important? The percentage of GDP created by tourism in Spain as a whole amounts to around 5%, not that much higher than in the UK. Is there a tourism minister at cabinet in the British Government? Take a look at the list of cabinet members and their jobs, and nowhere does the word tourism appear. I may be wrong but I don't think tourism has ever commanded a cabinet post, per se, in Britain.

Spain is different though. Take away a tourism secretary of state, and it's as if national pride and the national psyche have been attacked; it was tourism, as much as anything else, that was the foundation of contemporary Spain and of the economic boom that propelled the country from its position as a basket case. Moreover, Spain is reckoned to have the second largest tourism economy in the world. It is a not insignificant industry.

Though the GDP percentage may appear relatively low in national terms, at local levels it is far, far higher. Some latitude may be applied as to how the figures are arrived at, but in Mallorca, tourism is said to amount to 80% of the island's GDP, almost certainly an exaggeration, but maybe not when one takes into consideration related industries.

One of the arguments in favour of maintaining the more elevated role of tourism is that in competing countries tourism is at the very heart of government. Yet these competing countries have far greater levels of centralised government, Egypt for example. Spain was once highly centralised, and tourism was once the flagship industry, but no longer; the country is highly decentralised. It is decentralised not just in terms of regional government but also in terms of its tourism diversity. Selling "Spain" is as outmoded as Franco's state-directed system of government. Do tourists treat Spain and Mallorca as being synonymous? I would very much doubt it. The regional governments, such as that in the Balearics, have their own tourism marketing and their own tourism ministries. The ministry in the Balearics may have become a laughing-stock, but the strategic significance of tourism is reflected in the importance attached to the ministry (one that I have argued should in fact have greater importance attached to it).

One suspects that anger in Mallorca is an expression of anxiety as to possible cuts in funding for tourism from Madrid. Given that the local tourism ministry has found innumerable ways to fritter away public money, not all of them legal (allegedly), one might have sympathy were the Zapatero administration to wish Mallorca a plague on its various tourism houses (and institutes and foundations).

Mallorca is in competition with other destinations, and included among the competition are other parts of Spain, the Canaries and the Costas. The island's politicians want Madrid to be its benefactor and seemingly its tourism "leader" as part of a greater Spanish tourism industry, while at the same time doing whatever they can to nick tourists from other parts of the country. It doesn't quite add up. The regional government has its own structure, its own tourism industry, its own ministry, its own ability to determine industries (well, one) of strategic importance; it should get on with what it's meant to be doing and not fret about musical chairs in Madrid. They can't have everything. Why should there be a tourism secretary of state? There isn't one for construction or one for making donkeys with sombreros on their ears. They should just get over it.


Any comments to andrew@thealcudiaguide.com please.

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