EDUARDO SORIANO
PRESIDENT
CHAMBER OF COMMERCE OF MALLORCA
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. 138 YEARS PROMOTING ECONOMIC GROWTH IN MALLORCA .
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Founded on September 29th.1886, the Chamber of Commerce of Mallorca has just commemorated its 138th Anniversary as a fundamental engine of commerce, industry and technological innovation on the island, an important milestone that joins the celebration of the tenth anniversary of its Club Cambra.
The Chamber has established itself as an undisputed benchmark for the economic and social development of Mallorca, offering support to companies, SMEs and the self-employed, improving business competitiveness and promoting the internationalisation of Mallorcan companies.
An exemplary institution deeply committed to the interests of companies in Mallorca and firmly oriented towards the training of young people, promoting Intensive Dual Vocational Training with the aim of guaranteeing both job opportunities for young people and qualified professionals for companies.
The Cambra Club, for its part, celebrates 10 years of experience in which it has grown to bring together more than 500 members, of which 44% are self-employed and 56% are companies.
Today, at The Ambassadors Sections, we explore the vision of Eduardo Soriano Torres, President of the Chamber of Commerce of Mallorca, who highlighted the importance of promoting quality Vocational Training aligned with the demands of the current labour market, as well as the importance ofREB – Special Regime of the Balearic Islands,A tax incentive that will benefit 90% of the Balearic business fabric and will help companies to cope with the costs of insularity.
Eduadro Soriano in the precious head-office of the Mallorca Chamber of Commerce
President, thank you very much for having us within the framework of the international campaign «Balearic Islands, Sustainable Excellence», whose main objective is to highlight the strengths of Mallorca as an optimal destination not only from a tourist point of view, but also from an economic and business perspective, with great potential to attract international investment with high added value.
Let’s start, if you like, with the celebration of the 138 years of fruitful history of the Chamber of Commerce of Mallorca.
It is nice, and almost necessary, I would say, taking into account the times we are living in, to have reference institutions that remind us that effort, perseverance and a job well done continue to make it possible to support companies after more than 14 decades of tireless activity
Thank you, Patricia, for your words and for counting on us to contribute to the international promotion of the prestige of Mallorca, our companies and our entrepreneurs.
It has been 138 years since the foundation of the Chamber of Commerce of Mallorca, and for us it has been a real honour to celebrate and commemorate our legacy with the authorities and companies of our island, which are the ones that give meaning, shape and impetus to the mission of this institution.
At the Chamber, we are always receptive and willing to work closely with administrations in creating a regulatory environment that fosters fair competition in all sectors of our economy, such as tourist accommodation, transport, catering, housing construction and maintenance.
In the context of such a volatile and fiercely competitive global environment, public-private collaboration is more relevant than ever.
President, the celebration of the 138th Anniversary of the Chamber was attended by the President of the Balearic Government, Mrs. Margalida Prohens, along with other relevant figures from the institutional and business environment of the Balearic Islands.
What are the main reflections on the business fabric of Mallorca that you have shared with all of them?
For us, the most important thing is to continue promoting the competitiveness of local companies, as well as to promote quality Vocational Training, aligned with the current demands of the labour market.
Our main mission is to promote the diversification and internationalisation of the business fabric with productive initiatives and services aimed at supporting all Mallorcan companies, regardless of their activity, size and sector.
We consider it urgent to implement measures that prevent unfair competition from continuing to harm our companies, especially when those that comply with the regulations are at a disadvantage compared to those that operate outside the law, and to this end the Chamber of Commerce is committed to working closely with the administrations in the creation of a regulatory environment that promotes fair competition in all economic sectors.
On the other hand, given our insular condition, it is important for us to reiterate the importance of continuing to demand that the Special Regime of the Balearic Islands (REB) allows progress in the compensatory measures that correct the competitive handicap due to our insular condition.
We consider it crucial not to go backwards in the progress made so far, because we have reached a point where Mallorca’s dependence on the outside world is really worrying, exceeding up to 90% in many sectors.
It is imperative to strengthen the local productive sector to cover at least 50% of the island’s needs, promoting solutions that are compatible with tourism, our main economic engine.
The President of the Balearic Government, Margalida Prohens, has defined the Chamber of Commerce of Mallorca as «One of the fundamental pillars for the development of our economy, key to improving business competitiveness and a fundamental support for SMEs to open up to new markets».
That’s right. From our vocation of service, and for the general interest of our economy, we try to ensure that the Chamber of Commerce of Mallorca continues to be one of the most effective and efficient bodies on the island, especially in terms of training, thus ensuring the incorporation of talent into our companies and promoting the access of young people to the labour market through the best training.
We also help companies in the process of hiring young people who have been trained in the Chamber within the framework of the Comprehensive Qualification and Employment Programme (PICE), among many other actions.
In addition, from Club Cambra, a support platform with specific advantages for companies and self-employed professionals on the island, we also promote both training and the creation of new companies.
In these first 10 years of history, the Club has grown to group 500 members, of which 44% are self-employed and 56% are companies.
We are grateful for the attendance, presence and support of President Margalida Prohens to the celebration of our 138th Anniversary, as well as the rest of the attendees who have accompanied us, such as the Secretary of State for Tourism, Rosario Sánchez; the Government delegate, Alfonso Rodríguez and the Minister of Enterprise, Employment and Energy of the GOIB, Alejandro Sáenz de San Pedro.
Eduadro Soriano, President of the Mallorca Chamber of Commerce with Margalida Prohens, President of the Balearic Islands Regional Government
President, along with Competitiveness, another fundamental factor in the activities of the Chamber is Internationalization
No doubt. After the Administration, the Chambers of Commerce are the first institution that dedicates the most resources to promoting the internationalization of companies, advising them and offering logistical support in all their export actions.
The Chamber of Mallorca has a team of great professionals to support all our companies and entrepreneurs, so that they are able to compete successfully not only locally and nationally, but also in international markets.
We promote export strategies, provide them with strategic guidance and provide them with the most appropriate methodology that allows them to create a solid base to increase their competitive position, depending on each market.
On the other hand, through the Acelera Pyme Office, in collaboration with Red.es and the Spanish Chamber of Commerce, we also provide technological support to companies in their digital transformation process.
Recently, we have promoted the Innovation Office, to try to apply innovative solutions in a simple way so that our SMEs are increasingly competitive.
Thanks to public aid programmes, co-financed by the European Regional Development Fund, we develop export plans aimed at each target market to provide companies with the necessary tools to make them competitive according to their own degree of export maturity in the internationalisation process.
In Spain, about 49% of companies export their products, but only 4% do so on a regular basis.
Our main objective at the Chamber of Commerce of Mallorca is not for our companies to sell abroad on a one-off basis, but to do so on a regular and, if possible, regular basis.
All of our services for businesses are free and can be accessed year-round.
International Services Department:
Alicia Bueno – Telephone + 34 971 71 01 88 Ext. 2434 abueno.internacional@cambramallorca.com
On the other hand, we have also celebrated the 10th Anniversary of Club Cambra Mallorca, the business platform from which we promote services and offer resources to boost the economic activity of Preferred Members.
The Club invests in Corporate Social Responsibility, supports, promotes and defends the general interest of companies and helps the growth of entrepreneurs and SMEs in Mallorca.
President, let’s talk about tourism. Over the years, Mallorca has undergone a spectacular transformation and is currently appreciated and valued as one of the most attractive destinations in Europe.
That’s right. The Balearic Islands have proven to be one of the safest and most stable regions in Spain, both for visiting and investing.
Our climate, our strategic location in the heart of the Mediterranean, the quality of our connectivity, our infrastructures and our health system and the diversity of our tourism offer make up a combination of factors that make us a very attractive environment for tourism and investment, especially from the perspective of the real estate sector.
In Mallorca, Palma is a cosmopolitan, vibrant city full of life.
Palma has become increasingly open, and today it is a veritable international mosaic of Germans, British, French, Scandinavians…
More and more nationalities are surrendering to a wide range of services throughout the year, which invite you to enjoy gastronomy, sports, and cultural events, with a first-class hotel plant and a wide range of shopping that offers from charming shops of artisanal products and local brands, to the first international brands.
At the business level, coworking spaces proliferate unstoppably throughout the city and become places not only for work but also for networking, where you can establish business contacts in an easy and pleasant way.
More and more foreigners are choosing to settle in Mallorca because of its quality of life and the good connectivity offered by the island, from where they can continue to work remotely, from their second homes here.
Palma airport is the third most important airport in Spain, with connections to 163 destinations and daily flights to the main European and of course Spanish cities.
There is a high interest from international investors in the luxury hotel market, and a growing entry of large international brands willing to invest to continue increasing the category of hotels in Mallorca.
It is a pleasure to visit, live, or work on this wonderful island, which offers multiple attractions and leisure options and an extraordinary quality of life.
With more than 300 days of sunshine a year, Mallorca is becoming a paradise for all those looking to lead a more conscious and leisurely life.
Our gastronomy is also very well positioned and has already become one of our main tourist attractions.
Palma has been growing organically. Areas that years ago were in full decline have been reborn as charming neighbourhoods, such as Santa Catalina, to which the beautiful area of the Centre or the Paseo del Borne are joined, and so other areas will also be opened, because fortunately in Mallorca the rehabilitation of areas that had become obsolete and have been converted into authentic commercial and tourist lungs for the island is being valued.
With these new areas that are reborn in all their splendour, Mallorca is adding new nerve centres that not only boost and attract higher quality tourism, but also boost the economy of these areas, creating wealth and employment throughout the year.
President, and without ever losing sight of the importance of tourism in the economy of Mallorca, diversification is also a key issue for the Chamber of Commerce, not only in terms of promoting and opening up to new markets, but also to other sectors beyond the traditional ones.
Which ones currently have the most potential for growth and investment attraction?
Apart from tourism and services, which are and will continue to be key to our economy, other sectors are emerging strongly with great potential for development ahead and with enormous attractiveness from the point of view of international investment, especially in the framework of the new economy, such as organic farming and the boom in local produce. the audiovisual sector, technology companies and start-ups, innovation, research and development, the nautical sector, and of course the circular economy.
Nicole Kidman, hoplessly devoted to Mallorca during the shooting of Lioness.
All these sectors operate from models that advocate increasingly sustainable formulas.
Digital transformation is also currently an essential condition for improving competitiveness and is also transversal, affecting all productive sectors.
The entrepreneurs of the Balearic Islands, always at the forefront, are willing to lead the way towards a digital transformation and a true circular economy, and in that sense the Chamber of Commerce will always be by their side, as it has always done.
President, we will soon talk about companies, which is what concerns us, but talking a little more about the exciting and promising moment that Mallorca is experiencing, there is another positive factor for the economic and social fabric, and that is that the main governing bodies of the island are looking in the same direction, which helps not only to speed up government plans, but also provides the Balearic Islands with political stability, one of the factors that international investors take into account the most…
It’s an advantage, no doubt. In the Balearic Islands, all of them are fundamental for good governance, each from its position: the town councils to look after the progress and well-being of their municipalities and their citizens, the Island Council more focused on the Government of the island and the Balearic Government logically more focused on the breadth of vision that protecting the four islands implies.
Indeed, currently the achievements that are intended to be achieved by any of the three institutions are looking in the same direction and go in the same direction, but we also have to be careful not to duplicate or in this case triple initiatives that, although in principle they are different, sometimes have similar purposes and in the end can overlap and complicate the processes. instead of facilitating them.
We are in a moment of certain re-invention and that is always good. It is important to stop and reflect and redirect everything that can be improved, to prevent us from dying of success in the future.
From the Chamber, we also feel that it is our responsibility to always look for the good of the Balearic economy as a whole, because although we are the Chamber of Commerce of Mallorca, we care about and are affected by everything that happens at a regional level, as well as nationally and of course internationally.
Today, we are all part of a whole and we try to value those common points and the maximum objectivity regarding the creation of new or different initiatives.
We think it is positive that there are concerns and that things are moving forward working as a great team.
President, let’s talk about companies. How do you assess the current moment?
What is the feeling of Mallorcan businessmen?
The feeling of Mallorcan businessmen is positive.
Since tourism as a sector began its activity more than 50 years ago, it has been evolving very well.
I believe that today the attractiveness of our islands is appreciated and recognized in an indisputable way at European level and increasingly also at a global level.
Mallorca’s hotel industry has made a very significant investment effort in the last decade, in a truly commendable process of modernisation and refurbishment. I would say that, honestly, in Mallorca today we have one of the best hotel facilities in the Mediterranean.
On the other hand, the process of international expansion of Mallorcan hotel companies has been exemplary and proof of this is that currently, among the large hotel chains at a global level, there are a few that are Mallorcan at the top of the main rankings in the world.
The attractions of Mallorca and the Balearic Islands are very well established and integrated into the minds of the group and that is precisely why it is so important to review and update our tourism model for the future, to adapt it to the current circumstances, to the circular economy and to a responsible and sustainable tourism model, which will make our main economic engine much more competitive.
It is necessary to diversify from the contribution of added value, it grows in value, and not in volume, seeking the desired economic and social balance.
There is a growing collective awareness of the limitation of our resources as an island, so it is important to promote sustainable and environmentally friendly productive activity, as well as to promote local products and promote the circular economy.
I would like to highlight that, in the Balearic Islands, the index of entrepreneurship is very high, above the average of other Spanish and European regions.
In Mallorca, businessmen are used to pulling the chestnuts out of the fire, however, it must be taken into account that the internet and online sales have opened the door to thousands of competitors and not only in tourism, but in the entire productive sector.
And be careful, because many times it seems that tourism is demonized and I insist that it is a fundamental sector for our economic and business well-being, but during the last few years it seems that all efforts have been concentrated on tourism, and we must remember that beyond tourism there is also life, and that while the tourism sector grew unstoppably on the islands in the last two decades, the productive sector of the Balearic Islands decreased year after year…
This has led us to an alarming dependence on the needs created by tourism activity, either directly through hotels or through all companies linked to tourism, while now 90% of the consumption needs of Mallorca and the Balearic Islands have to be imported.
I believe that, in terms of consumption needs, we should become self-sufficient in at least 10% of what we consume, therefore, there is a very important work ahead to be done in this regard.
I am not saying or expecting that we will have or be able to reach 100% self-consumption, but if we reached 50%, we would already be much more competitive.
During all these years, our traditional industries have been shrinking. The shoe industry, or carpentry… in general, in Mallorca, all the industry that we had here on the island has been gradually diminishing and now we have to bring everything from abroad, and what we still produce here is at a disadvantage for what is the productive sector of the Balearic Islands, due to our insularity.
We have the peninsula very close and getting to Mallorca costs less and less, with a maritime service that works very well, so today the production costs in the Balearic Islands no longer compensate for the cost of moving finished products from the peninsula to here.
And we find this great paradox that, being the Balearic Islands a nearby peripheral area (to the peninsula), it does not enjoy the same tax benefits that the Canary Islands have, for example, because they are considered a distant peripheral area, where they enjoy very interesting special regimes that greatly benefit their productive sector.
In this context, we must emphasize the enormous importance of the Special Regime for the Balearic Islands (REB) for us, because insularity means that we are not on an equal footing with any other peninsular region, and the REB for the Balearic Islands will be a tax incentive that will benefit 90% of the Balearic business fabric, help to bear the costs of this insularity and help to carry out any productive or export activity in the Balearic Islands. our territory, whether it is services, industrial, agricultural, livestock or fishing.
In March last year we were informed of the entry into force of REB and this year the draft of the regulation was officially presented, which once approved, will regulate the application of the Law.
This tax benefit can also represent a key factor in attracting foreign investment to the islands, as it implies a reduction of between 80% and up to 90%, in some cases, of Personal Income Tax or Corporation Tax, provided that its results are not distributed as dividends and are used for reinvestment in the activity and for a minimum of the required time.
Undoubtedly, this operation should have an impact on a better capitalisation of companies, on greater efficiency of their production systems and consequently, on an improvement in their competitiveness, so the entry into force of the REB is a great step for our companies and the self-employed. However, there is an important nuance that is the Minimum Law.
Earlier you asked me what worries the Mallorcan businessman, what his main concerns are now.
Well, one of the things that worries us, and a lot, is that here we are subject to the Minimum Law, which cannot exceed €200,000 tri-annually, that is, all the state aid that there may be, from the central government, is capped here by a law that cannot exceed €70,000 a year.
And this applies to all sectors of the productive fabric, which being able to deduct, by law, about €600,000 a year for transport subsidies that are already established, we here in the Balearic Islands can only deduct €70,000 a year, due to the Minimum Law.
And this is something that has also been proposed to the Government, so that it can try to expand that limitation, that straitjacket that we have with the Minimum Law.
We should find a solution because, as I said before: what is the point of having all the local institutions united if every time something is raised you have to go to the central government and then to Europe?
And Europe, apart from our case in the Balearic Islands, will have others, and they would have to open a melon that everyone would then ask for their own.
Therefore, I believe that these are solutions that have to be analysed well by the Balearic Government, because there are solutions, which are not easy, of course, otherwise they would already be done, but it is an issue that really needs to be studied and worked on.
The Balearic business community is hopeful that this issue will be solved because these are problems that are also seen and understood by our local government, what happens is that sometimes there are problems, problems arise or they do not have the freedom of action that we in principle believe they could have.
It is an issue in which there are many conditioning factors of all kinds, but the point is that it is very long and it seems that we do not reach that…
In the end, the Special Regime Law basically consists of a deduction of undistributed results that are dedicated to investment to modernize and update the production systems of companies here, so there is no doubt that the REB is beneficial because it has an important tax exception, especially taking into account the size of the company here in the Balearic Islands. but the problem is that it is subject to the Minimum Law, which we cannot go over.
That is the problem, and that is the key: the law. If you open the door there a little bit…
We know that the Government is working intensively to achieve the maximum effectiveness of our Balearic Islands Special Regime, but as I say, it takes a long time, because in the Balares not only the industrial part has been decreasing, but also livestock farming has been decreasing year after year and what this does is that the productive sector is becoming more and more expensive and that the difference in prices with respect to the peninsula is widening.
It is very important to bear in mind that insularity reduces our competitiveness, and that is where we need the Administration to be present and accompany any business initiative that contributes to promoting and improving the prestige of our products and our brands.
On the peninsula, perhaps a factory can produce systematically throughout the day, and here it cannot, because here the factories may have to meet several demands.
You have to find a way to change the system, and also the processes, and of course that takes time and leads to an increase in the price of raw materials, because if you have to work with raw materials from abroad, they are more expensive here in the Balearic Islands than anywhere else on the peninsula.
I know this from experience, because I have an important stake in a factory here in the Balearic Islands dedicated to the food industry, and being located here in the Balearic Islands, instead of being on the peninsula, in its operating account can represent almost 1 million euros a year of cost overrun.
Well, in all these things we must work, to support the productive sector so as not to have such a high dependence on the outside.
In this sense, the role of the Chamber of Commerce is key as a collaborator of the Public Administration, in all actions that contribute to improving and benefiting our business fabric.
It might seem that businessmen are always complaining, but when we complain about things it is to improve them.
When I sit at a table it is to analyze the problems and try to find solutions, not to analyze the advantages, not what is already going well, because if something is going well, it is that we do it well.
Our focus should be on what we can improve. That is the way to move towards positive progress.
Mallorcan entrepreneurship works and is optimistic, the growth rate of companies also works quite well and, at the credit level, here in the Balearic Islands credit for start-ups is quite high compared to other regions of Spain. If you analyse a little, you see that the issue of aid in subsidies is much more accentuated in the peninsula than here.
And the most important thing, that here in the Balearic Islands companies are eager to move forward and people are eager to work and for our part, everything we see that can be improved for the benefit of companies, we will always try to try to improve it.
President, what are your main priorities right now, the main lines in the roadmap of the Chamber of Commerce of Mallorca?
Our main priority, now and always, is to accompany and help our business fabric in every way and in every possible way in the new challenges it is facing, and to this end we are very focused on promoting innovation.
We take advantage of regional, state and European programs that promote innovation, we have launched the Start Ups Accelerator Program and the Office for the Promotion of Innovation, an innovation advisory service that we have launched with the help of the Balearic Government.
We are also very focused on promoting the internationalization of our companies, helping them to grow in international markets through fully personalized advice, helping them in export and finding partners in other markets, as members of the EEN that we are, the largest support network for small and medium-sized European companies that want to innovate and grow internationally.
President, one last message about the best that Mallorca can offer from a business point of view, because among the community of international investors, there will be businessmen and entrepreneurs who can become potential future residents in Mallorca.
When I travel and talk about Mallorca with people from other places, when they hear Mallorca everyone sighs… Can you imagine that we are resting all day in front of the sea, enjoying an eternal vacation… And I always tell them, «Look, in the Balearic Islands we work a lot, a lot, only we do it from a wonderful place».
In Mallorca, due to our cultural openness and the floating demand we have, there are more business opportunities than in other territories.
It is enough to take a look around us to see that our great tourist, cultural, commercial and gastronomic offer, as well as the access of foreign companies and brands of international prestige to our island, obey this great demand that goes beyond the resident and that, at the same time, benefits us all.
Many of these businesses are run or come from foreign investors who have opted to establish themselves in our community, for our cosmopolitan offer and for the opportunities and extraordinary quality of life that Mallorca offers.
I venture to assure you that exploring the diversity of our business landscape will be as attractive and interesting to you as discovering the spectacular beauty of our surroundings.
Eduardo Soriano
President
Chamber of Commerce of Mallorca
Palma de Mallorca, November 4th. 2024
By Patricia Pal
EDUARDO SORIANO TORRES
President
Estudi General 7 – 07001
Palma de Mallorca – España
(+34) 971 710 188
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