Calp’s Department of Tourism has released early findings from a business confidence survey aimed at understanding how local entrepreneurs view the economic outlook for the town in the third quarter of 2024. The data point to a positive sentiment that outpaces regional and national benchmarks, yet leaders identify inflation and weakening demand as the main constraints on activity. The mood is cautiously optimistic rather than a guaranteed upswing.
These initial results show that 34 percent of companies evaluated the previous quarter as favorable, compared with 15.3 percent that labeled it unfavorable. For the current quarter, 29.9 percent anticipate a favorable environment, while 17.6 percent foresee unfavorable conditions. The balance signals momentum toward growth, though improvement is not uniform across all sectors.
In terms of employment, the survey indicates a positive net creation of 11 percent in the prior quarter, with expectations of a continued rise to 9.9 percent in the current period. Larger firms tend to expand their payrolls more than smaller ones in the same timeframe, underscoring a scalable level of confidence among the region’s larger enterprises.
Regarding prices, there is a noticeable uptick. About 26.2 percent of firms increased prices in the previous quarter, and 20.6 percent expect to raise them in the current one. The sales turnover balance was positive at 6.2 percent in the prior quarter and is projected to improve to 13.7 percent in the present quarter. Investment also showed a positive balance of 13.9 percent previously, though the outlook softens somewhat to 5.3 percent for the current quarter.
When asked about the primary drag on activity, Calpe entrepreneurs pointed to inflation (the highest concern), rising competition, weak demand, and a shortage of suitably skilled labor. These concerns shape strategic planning for local businesses and municipal policy alike, illustrating the ongoing balance between growth opportunities and price pressures.
Overall, the report paints an optimistic scene for Calp’s business sector heading into the third quarter of 2024, with favorable expectations across most indicators yet clear challenges tied to inflation and competition that call for targeted responses from both the public and private sectors.
Assessment of the results
Marco Bittner, the councilor for Tourism Promotion, stated that the business confidence survey places Calp in a solid growth position, surpassing regional and national expectations. He noted that local firms are creating jobs and increasing investment, reflecting confidence in the city’s future. At the same time, he acknowledged the real concerns around inflation, heightened competition, and the shortage of skilled labor for local enterprises. The message is balanced: progress is happening, but vigilance is essential.
To address these challenges, the council plans to work closely with the business sector. Initiatives will include training programs to boost the workforce’s skills, policies that foster innovation and competitiveness, and strategies to mitigate inflation’s impact on local firms. The aim is to build a resilient economy that can absorb price pressures without stifling growth.
This effort forms part of the Tourism Strategic Plan for Calp and the Destination Smart Tourism Plan. The Business Confidence Indicators are a quarterly survey designed to capture the views of business managers about current conditions and future prospects. The target population includes establishments with at least one employee within the municipality, and the survey is conducted on a quarterly cadence. The results are meant to provide long‑term visibility into how confidence evolves, enabling comparisons with regional and national benchmarks.
These surveys are expected to provide ongoing insight into the trajectory of business confidence, enabling continual monitoring by quarter and allowing year‑to‑year comparisons with broader data sets. They serve as a barometer of the local economy, helping to inform policy decisions and private sector strategies alike.