The Institut d'Estudis Eivissencs has brought the debate over Ibiza and Formentera's economic future into focus with the presentation of the Informe Fénix, an economic study examining the consequences of a growth model based heavily on population growth, employment in lower-paid sectors and activities with limited productivity.

The presentation took place on Wednesday, September 16, at the Ibiza headquarters of the Universitat de les Illes Balears, with more than 100 people attending. The event was presented as an opportunity to examine whether the economic trends identified in the study of Catalonia can also help explain developments in the Balearic Islands and the Pitiusas.

A Study Originally Focused on Catalonia

The Informe Fénix was produced to analyse the deterioration of the Catalan economy over the past 25 years.

It was coordinated by Xavier Roig and prepared by economists Xavier Cuadras Morató, Modest Guinjoan and Miquel Puig, with advice from Jordi Galí, Guillem López-Casasnovas and Jaume Ventura.

Although Ibiza and Formentera are not the direct subject of the study, the document includes comparisons involving the Balearic Islands. Its authors argue that several of the economic dynamics identified in Catalonia are also visible in the Balearic economy.

Productivity at the Centre of the Debate

One of the central arguments presented in Ibiza was that economic growth does not automatically translate into greater prosperity for residents.

Miquel Puig explained that the issue is not simply how much an economy grows, but how much value is generated by each worker. According to the analysis presented, the Balearic economy has expanded strongly through population and employment growth without achieving a comparable improvement in productivity.

Guillem López-Casasnovas similarly argued that creating large numbers of jobs, particularly in lower-paid sectors, does not necessarily guarantee an increase in overall wellbeing.

The report itself stresses that its argument is not simply a criticism of tourism or immigration, but focuses on economic activities that generate relatively low productivity and rely heavily on lower wages.

Population Growth in Ibiza

The presentation also placed Ibiza's demographic expansion at the centre of the discussion.

Figures presented during the event showed the island's population increasing from 88,076 people in 2001 to 167,988 in 2026, representing growth of around 90 percent.

For the speakers, this rapid increase is significant because it has taken place alongside the expansion of an economy heavily concentrated in services.

The argument presented in Ibiza was that adding more workers can increase the total size of an economy without necessarily increasing productivity or the amount of wealth generated per resident.

Balearic Income Has Lost Ground

One of the headline figures associated with the Fènix analysis is the relative evolution of income in the Balearic Islands.

According to the figures presented at the event, the Balearic Islands were around 23 percent above the European Union average in per-capita income in 2001 but are now below the European average.

The speakers used this comparison to illustrate their argument that economic expansion over recent decades has not translated into a corresponding improvement in relative living standards.

Tourism and the Expansion of the Islands

Tourism formed a major part of the discussion because of its importance to the Balearic economy.

Puig argued that the islands' tourism growth has been accompanied by increasing use of tourist accommodation and expansion in the number of visitors, while warning that growth based primarily on volume can create pressure without delivering equivalent productivity gains.

He also stressed that tourism itself is not inherently a low-productivity activity and said the question is how tourism is organised and what type of economic activity it generates.

The proposal discussed in connection with the report includes greater regulation and, in some circumstances, a reduction in tourism capacity.

Housing and Public Services

The economic discussion also moved into issues directly affecting residents.

Housing affordability, pressure on public services and the growing demand for infrastructure were repeatedly raised during the event.

The speakers argued that a rapidly expanding population increases demand for housing, healthcare, education, transport and other public services. At the same time, lower-paid employment can limit the amount of fiscal revenue generated relative to the cost of providing those services.

The Fènix analysis uses this relationship between wages, productivity and public finances as one of the foundations of its argument for structural economic change.

The Debate Over Ibiza Airport Expansion

The proposed expansion of Ibiza Airport was another major issue raised during the presentation.

Puig argued that increasing airport capacity could further accelerate the same growth dynamics the report questions, particularly if additional capacity results primarily in more tourism and population pressure.

He described expanding the airport under the current economic model as "echar leña al fuego", while acknowledging that the wider question is ultimately connected to how the island chooses to organise its economy.

The airport expansion was particularly relevant because the presentation took place just days before a demonstration planned in Ibiza against the project.

Possible Solutions Discussed

The Informe Fénix proposes structural changes intended to move economies towards activities capable of generating greater value and higher wages.

Among the measures discussed by the authors are raising the minimum wage, changing incentives that favour low-productivity activities, regulating tourist accommodation and reducing excessive tourism capacity where necessary.

The authors also discuss selective immigration policies as part of their proposals for addressing demographic and labour-market pressures.

These proposals remain part of the report's economic framework and are matters of debate rather than established policy for Ibiza or the Balearic Islands.

A Debate That Extends Beyond Tourism

The Ibiza presentation ultimately focused on a broader question than tourism alone: how can an economy continue to grow while also improving the material wellbeing of the people who live there?

For the organisers, the Informe Fénix provides data and an economic framework for examining concerns that have become increasingly visible in Ibiza and Formentera, including housing costs, pressure on services, mobility and the scale of population growth.

For the report's authors, the challenge is to move from growth based mainly on volume towards an economy capable of generating more value per worker.

A New Discussion for Ibiza and Formentera

The presentation does not mean that the Informe Fénix constitutes a specific economic study of Ibiza and Formentera. Instead, the Institut d'Estudis Eivissencs has used the study as a framework for examining similarities between Catalonia, the Balearic Islands and the Pitiusas.

That distinction is important, particularly when considering the report's conclusions.

The September 16 event nevertheless places questions about productivity, wages, tourism capacity, housing and population growth firmly back at the centre of Ibiza's economic debate as the island considers what kind of growth it wants for the years ahead.