A NEW report has cast doubt on the sustainability of Catalunya’s tourism and pig farming sectors.

The explosive report argues that the public cost of supporting both industries increasingly outweighs their economic benefits.

The Fenix report, published by a group of academics and economists, has claimed that the productivity of Catalunya’s economy is ‘mediocre’ when compared with the rest of Europe. 

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They state that in 2000, Catalunya’s economic productivity was 8% lower than the European Union average, whereas today it is 13% lower. 

The report links the decline to the region’s economic dependence on low-skilled industries that, it argues, are effectively ‘subsidised’ by the state.

These include tourism and pig farming, sectors where average pay is typically below €29,000.

At these wage levels, the report says, workers do not generate ‘sufficient tax and social resources’ to cover the basic services they require, like healthcare and education. 

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This means they benefit from a ‘hidden subsidy from the rest of society’ placing a strain on public finances. 

The report estimates that a three-star hotel on the Catalan coast benefits from an ‘implicit state subsidy’ of €6 per night, while each slaughterhouse is said to receive indirect aid of €0.70 per kilo of meat.

With 75% of Catalunya’s pork production being exported, and 80% of public money used to subsidise the tourism industry benefiting foreign tourists, the report claims these ‘subsidies’ do little to actually benefit Catalan people. 

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The report claims that the growth of ‘low-wage industries,’ which it says has been ‘driven by immigration,’ must be halted in order to save Catalunya’s economy.

Although immigration has helped offset the effects of an ageing population, the report argues that it has also fuelled the expansion of low-paid sectors. 

Among the measures proposed to reverse the economic slowdown are ‘selecting immigrants based on skill,’ raising the minimum wage until the growth of low-skilled jobs ‘stops,’ and significantly reducing tourism capacity.

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