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Political corruption and language debates

Gabriel Cañellas Fons (right) was the first president of the Balearic autonomous government since the island territory gained autonomy in 1983. He was forced to resign in 1995, after being re-elected to the post several times. He was implicated in a vast corruption affair in which a good part of the political class was involved. This was followed by a political alternation between the Socialist Party of Francesc Antich i Oliver and the Popular Party, until a new corruption scandal broke out in 2010 (Palma Arena), this time involving left-wing leaders. The Socialist president had to divest himself of some of his support, but this was not enough to consolidate his position and the right won the following year, the year in which the son-in-law of the King of Spain, Iñaki Urdangarin, was compromised in a case of embezzlement of public funds, the Babel case, which was derived from the Palma Arena case.

In the years following the global systemic crisis of 2008, Spain was not spared economic devastation, and the Balearic Islands even less. Employment in the archipelago is very seasonal, and in winter the situation deteriorates, with Ibiza being distinguished by a work rhythm that is based on the arrival of tourists. In addition to this economic problem, there was the problem of the reform of the educational system: the government of José Ramón Bauzá decided to replace the use of Catalan in the Balearic schools with English, creating a deep social unrest on the island. The reform was finally cancelled in the autumn of 2014 and Education Minister Juana Maria Camps was removed from office. Numerous demonstrations followed in support of Bauzá's resignation. Since then, language policy has featured prominently in political debates. In 2016, Francina Armengol's government had made Catalan a mandatory requirement for access to a regional civil service position. In 2018, a decree was even put in place making Catalan a prerequisite for working in Balearic public hospitals. A measure that caused outrage in the health services and the departure of some foreign doctors, even though the current health system suffers from understaffing.

Agriculture in search of a better life

Ibiza and the Balearic Islands, before the opening up of 1963 by General Franco, had a typically Mediterranean economy, deriving their wealth, albeit relative, from working the land. The fertile soil and the mild climate have made it a fruit and wine producing area: almonds, carob and lemons are still cultivated. The olive tree, which for many centuries has been the wealth of the island, continues to be cultivated in Ibiza, with no less than nine official producers. But over time, intensive agriculture has led to profound changes in the landscape: the island's vegetation cover and primeval forests are receding. In recent years, however, there has been a new agricultural impulse on Ibiza, led by neo-peasants who are fervent defenders of the km0 and know how to take advantage of the island's fertile land.

Fishing continues to occupy some families on Ibiza, where fishermen are passed down from father to son. However, the flotillas of small boats that used to charm many of the island's ports have been replaced by trawlers, due to the need for productivity. Although they have been the object of renewed interest in recent years, the salt marshes, which used to be one of the main activities on Ibiza, are tending to disappear. Tourism has become the island's main economic resource.

Tourism to be mastered

With the opening of the country to the outside world in the early 1960s, agriculture lost its status as the leading sector of the island economy. The fault lies with tourism. This mainly concerns foreign visitors, but also the Spanish mainlanders. In the 1960s, the country was cheap, as the faithful of Ibiza like to recall. As far as prices are concerned, everything has changed today. But every year, millions of lovers continue to follow in the footsteps of the hippies, in the nightclubs or on the golden seashores of the beautiful white island.

Despite a bad period in 2009 due to the fall of the pound against the euro (resulting in a drop of 1 million visitors in just one year), Ibiza (and the Balearic Islands in general) quickly recovered, taking advantage of the events of the "Arab Spring", which helped attract new visitors. In the following years, tourism only increased until it reached a record number in 2016: 7.1 million visitors to Ibiza alone! That's an increase of 14.6% over the previous year. With the tourist tax that came into force at the beginning of summer 2016, the Balearic government has moreover managed to recover 40 million euros in one year, a budget reinvested in protecting the archipelago's heritage and nature. But the economy of Ibiza and the Balearics has become dependent on this flood of tourists. If tourism alone accounts for nearly 35% of the archipelago's GDP, it reaches as much as 90% of GDP when it comes to Ibiza! In 2018, the island welcomed just over 4 million visitors, significantly less than two years earlier, only to drop again the following year. Then 2020 and the global pandemic came along, almost bringing the tourist industry to a halt...

However, as the living conditions are not unpleasant and the entry control measures are rather flexible, the island has become a land of welcome for teleworkers in 2020-2021. Also, the many foreigners who own a second home on the island have decided to settle in Ibiza permanently. While the 2021 tourism figures were not yet available at the time of publication of this guide, it would appear that the summer of 2021 - despite the closed party venues - has benefited the island's hotel and restaurant sector. Indeed, the testimonies gathered during our survey suggest that the 2021 season was much better than 2019... Even before the pandemic!