Saturday, December 27, 2014

The Russians are going

The economic crisis in Russia is set to have a profound effect on this region of Spain. Russia spends over 500 million euros a year on the Costa Blanca, that is a lot of revenue to lose.

First there is the export of fruit, vegetables and quality leather goods from the area which accounts for 106 million euros. The Costa Blanca also exports, among other things;  marble, fertilizer, oils, perfumes, canned vegetables, fruit juice, furniture, lamps and pottery – even musical instruments. 

Then there are the tourists who were on a rapid increase over the last year but are now in decline. !61,000 Russians arrived at El Altet in the last year and they bring money with them to spend in hotels, bars, shops etc.

Lastly, there is real estate. Wealthy Russians were buying homes in the area at prices over 500,000 euros, an average of 918,000 euros per house. Set that against the average investment of other nationals at 126,170 euros and you can judge how important the Russian business was to this area.

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