Yes, there is that, without any doubt. But that doesn't cover everything. If you take so-called mass-tourism, such as the Balearics 'enjoy' each year: when I first came here on a work trip back in '66, the tourist trade was already very well established on Mallorca and Ibiza, but there were also lots of other little industries going on. There was a lot of work in leather goods; there was a lot of farming; several shoe factories shipped world-wide. Construction was huge. Now, I don't think there's a shoe producer left, partly, I suppose, because of Chinese competition; the construction industry pretty much destroyed itself by over-production of apartments still sitting empty (killing off resale values), lots of money was spent on gigantic nightclubs, some of which sit in fields like graffiti memorials to times past. Almonds were once harvested each year - they are still very expensive to buy, but often go uncollected due to the cost of labour - if you can get it to do the work. There were several boat builders on the island - as far as I know, not anymore. As with the construction industry, unskilled work (as you indicated re olive oil) that the locals eventually didn't want to do, was taken on by migrants from former north African colonies... there are now towns such as Sa Pobla, where you think that you're in Africa. Why? Because it's the centre of what remains of the farming area, and were old Mallorcan ladies dressed in blue once used to spend their lives bent double picking potatoes... but, with little building going on, these migrants have nothing to do all day but brood. Need I expand on that situation?
The years of fast tourist bucks have been very corrupting. Youth expects everything right away; often it has to go right away, just to get a job. Unemployment is very high - in winter, I think it tops 60% here due to closed hotels. That can't be healthy for any economy or group of people. As I said, the concentration is amost 100% on tourism, to the expense of everything else. That nothing else may now exist is true, but for as long as there's no incentive even to try to spread into other industries, that's how it's going to stay. How to break the vicious circle?
Rob