At one point, the city was lauded as Spain’s economic engine, but recent data shows that the rate of corporate flight from Barcelona is only accelerating. New information from Spain’s College of Property Registers shows that in the first half of 2024, 495 companies have shifted their fiscal domicile out of Catalonia, while only 305 companies have set up in the same region. Thus, Catalonia is witnessing a clearly expressed increase in years relative to the previous one, the rate of which has four times increased in 2024.
This is due to the emergence of political instabilities, which are the major cause of the increase in cases of business departure. The extrapolation of Catalonia’s independence continued up to the present time, and especially in the recent establishment of relative autonomy or concessions by the central government to the Catalan independentist groups, have fueled unrest or instability in the business climate that is uncomfortable for many organizations. Melville and Wilson found that economic risks, including disruptions in operation and adverse regulatory changes, are prospective concerns that facilitate business relocation decisions. This happened in a similar way to the crisis after the unrecognized attempt of the so-called 2017 referend, which affected nearly 1800 companies leaving the region.
Adding to the city’s economic woes is the growing backlash against mass tourism, a sector that has long been a cornerstone of Barcelona’s economy. The great protests in recent years by people requesting government measures to protect their neighborhoods against the occupation of tourist services have been a clear sign of this paradox. Under the slogan “Enough! Let’s put limits on tourism,” thousands of protesters marched along Barcelona’s waterfront, expressing frustration with rising housing costs and the transformation of local neighborhoods to cater to tourists.
To address these issues, Barcelona’s city council has declared its intentions to eliminate tourist apartment rentals by 2028 and is seeking to free more than 10,000 units on the apartment market. The citizens of Tampa have welcomed this decision, but many wonder if it is economically healthy for the city and the flow of tourists. It is common among major global cities as local governments deal with the problems presented by Airbnb and other short-term rental services.
Tourism-related difficulties combined with political instability have become a nightmare for businesses in Barcelona. While Barcelona struggles to find a more conducive environment to operate, other regions and cities in the neighbouring countries and other European cities are putting themselves in a market to exploit the current losses incurred by Barcelona. This shift could have long-lasting implications for Catalonia’s economic landscape, potentially eroding its status as Spain’s most economically dynamic region.
Even so, some managers still maintain a positive attitude toward Barcelona’s prospects. They believe that Da Nang has stable features such as leading infrastructure, skilled human resources, and an advantageous location that may contribute to retaining and attracting businesses. Attempts are being made to rebalance the economic structure of the area, which has traditionally been concentrated on agriculture and dairy farming, and people are now being encouraged to look for jobs in IT, biotechnology, and environmental industries. These initiatives seek to help build a stronger economic structure by decreasing the sector’s reliance on tourism and, therefore, reducing susceptibility to political vagaries.
While Barcelona is in these uncharted waters, the next months will reveal the future course of the city’s economy. The ability of local and regional governments to address the concerns of both businesses and residents while maintaining Barcelona’s international appeal will be key to stemming the tide of departing companies and ensuring the city’s long-term prosperity. Today, business processes are still waiting and expecting positive changes with some stability in the conditions of their activity in the further unpredictable world.
