Culture now surpasses agri-food in the Balearic economy

PalmA sector that generates €807 million in added value annually and employs at least 3.2% of the total workforce in the Balearic Islands is no longer insignificant. According to the latest analysis by the Impulsa Foundation, the cultural and creative industry ranks seventh among the islands' productive ecosystems and, more importantly, "has enormous potential and is currently one of the actors that can contribute most to the necessary economic diversification," explains Antoni Riera, Professor of Economics and coordinator of the study. Although this sector's contribution to the overall island economy is 2.1%, it is worth noting that the cultural industries have already surpassed other sectors with greater renown and historical recognition, such as agri-food or digital activities. "This sector is now consolidated after years of being based on amateurism and a lack of professionalization," Riera states. The economist, in any case, is aware that "it's a process and, of course, there's still a lot to be done because we're generally dealing with micro-enterprises that require support in all areas to really get off the ground," he concludes.

Except for the top three sectors of the island's economy—tourism, commerce, and construction—which account for the bulk of economic activity, the cultural industries have managed to establish themselves and are strongly claiming an increasingly prominent role in the island's economic landscape, surpassed only by the social economy and health sectors.

The study breaks down the cultural sector piece by piece, because it is a true puzzle of activities and disciplines: it identifies specialized education in the field (17.9%), advertising (14.8%), and design, photography, and translation and interpreting (10.8%) as its main pillars. Meanwhile, audiovisual production, with a notable 8.4%, is also a key player in the cultural industry. "We know our potential, we know that the audiovisual industry in some communities is establishing itself as a very important sector for job creation, but in the Balearic Islands there is still a long way to go, and there is still far too much job insecurity," explains Kiko Domínguez, president of the Association of Audiovisual Producers (APAIB), to ARA Baleares from Menorca.

Galicia and Catalonia are some examples of significant growth in audiovisual production in recent years, which, according to the island sector, "has an immediate return," says Domínguez. "We have experienced this ourselves with the production of Favaritxwhich is currently on HBO. €300,000 was invested, and we can now confirm that it has generated a turnover and total return exceeding €20 million. I think that says it all. But it can't be the exception; it must be the norm,” he laments.

Dependence on subsidies

One of the problems facing the audiovisual sector and other segments of the cultural industries is their excessive dependence on the public sector. "Every year you have to check if they're going to invest in your projects. Time passes and either you don't get a response, or there are changes in public sector teams, and that makes things difficult. We need private investors, for example, from the tourism sector," suggests Domínguez. The director of Impulsa, Antoni Riera, confirms that this "is a fundamental option. To structure the companies that produce stage and audiovisual productions, we need more private capital. And for this to happen, it's important that the sector be able to generate trust and business expectations. I have no doubt that when this is the case, we won't be talking about 3% or 4%, but more than 4%. We need that pool of money in other places," he concludes.

According to the various subsectors of the cultural industry, the situation has improved, but some structural problems, such as the intermittent availability of projects and work for creators, are still very prevalent and reinforce a fragile model. According to previous studies conducted by the Administration, 94% of cultural businesses in the Balearic Islands are micro-enterprises, often made up of freelancers or very small teams. "This limited size affects the sector's capacity for innovation, internationalization, and job stability," explains Fàtima Riera, spokesperson for the Illescena Association, an organization that brings together performing arts production companies in the Balearic Islands. "An average stage production employs between two and five people and has between 10 and 15 performances. You put in a huge effort in preparation, development, and production, and then the run is very short. This consumes a great deal of energy, and the return on that production is small. Of course, it makes sense, and fear sets in," she states.

For all these reasons, the spokesperson for performing arts entrepreneurs is somewhat skeptical about the idea that culture will increase its relative importance because "we still suffer from too much precariousness, we still have lower salaries than many other sectors, and therefore it's difficult for us to offer stability and attractive conditions. We're supposed to need good professionals. With the results," she says.

Having the ingredients

Various professionals and experts agree that the Balearic Islands "have the main ingredients" to cultivate a more robust cultural sector. Even so, they clearly see the obstacles: "We're still too focused on selling a specific project to salvage the year. And that can't be. We go to industry events and see with frustration how, while in Catalonia the Institute of Cultural Enterprises invests more than 60 million euros of public funds just in public works, we need a decisive commitment, let's not kid ourselves. That's how we'll achieve the results other places have experienced," asserts Kiko Domínguez.

The sector encompasses not only audiovisual production, theater, and, naturally, music. It also includes graphic arts, museums, and archives. "Quality cultural activity attracts audiences and generates results," affirms Antoni Riera. "The culture and heritage of the Balearic Islands should define the type of tourism they want to attract, not the other way around." This vision should position culture as a structural element of the tourism model, capable of determining its quality and generating tourism that is more closely linked to the territory, respectful, and with greater added value,” it states, “instead of conceiving culture as a complementary product.” This is what cities like Bilbao, Edinburgh, Toulouse, Terrassa, and Dublin have done, for example, according to the Impulsa Foundation study. It is not just about attracting visitors for other reasons and then offering them a show or a complementary visit once they are at the destination, but rather “choosing culture and creativity as a strategic and central factor” in economic and social development. The problem is that to travel this path, a more structured cultural sector is still needed. "It's a challenge we haven't quite met. There's a shortage of stage technicians, for example, because only a few can truly make a living year-round from the industry. You have people who juggle three productions because otherwise, they don't earn enough with what they're paid. If we want to become a real industry, we have to take a step forward and get to work," Domínguez concludes. "The best, like Marga Huguet, a Menorcan producer with two Goya Awards, would like to carry out projects on their island. But we all need to believe in ourselves more."