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Home Europa Press

Canarian industrialists demand an increase in aid from the REA to mitigate the rise in prices

March 11, 2022
in Europa Press
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Canarian industrialists demand an increase in aid from the REA to mitigate the rise in prices
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SANTA CRUZ DE TENERIFE, March 11. (EUROPE PRESS) –

The president of Asinca, Virgilio Correa, met this Friday with the Minister of Tourism, Industry and Commerce of the Government of the Canary Islands, Yaiza Castilla, to request measures that help mitigate the rise in prices, including the increase in REA aid for 2023.

In statements to journalists before the meeting, he commented that the situation is “very complicated” because there is an increase in the prices of electricity, fuel and raw materials such as grain, cereals or iron and since the war in Ukraine began especially the cost of shipping and cargo spaces on ships.

Thus, he has detailed that freight prices with the Peninsula and the European Union have increased by 50% in the last year and will reach 60% in the coming months, while with Asia and Latin America they have gone from 1,500 to more than 8,000 Dollars.

Correa understands that the increase in aid from the REA is a “strategic solution” for next year in order to help “alleviate” the costs of ultraperipherality and the sharp increase in prices.

The councilor, Yaiza Castilla, has welcomed the proposal and is going to start working on a “strategic defense” of the islands’ industry to request an increase in aid at the technical table with the ministries of Finance, Economy and Agriculture and in the Government Council.

He has commented that the island industry already had “serious problems” derived from the pandemic but “they were resistant and strategic” to guarantee the supply of the islands but now the crisis is “hardening” due to the increase in the price of fuels and especially electricity , which has increased by almost 30%, and all this without passing on prices to consumers.

Thus, he has indicated that the increase in aid “is not a whim” because “they need it”, while he has advanced that formulas are being studied through the REF in order to help the subsector, tourism and trade.

THERE IS NO STOP IN TOURIST RESERVATIONS

Regarding the tourist market, he has indicated that there are 8.3% more air seats for this summer and reservations continue to grow — this week by 10.8% — although at a slower rate and he trusts that the islands will become ” refuge destination” given that some competitors in summer may have more problems due to the proximity to conflict zones or the closure of connectivity with Russia.

In addition, he pointed out that the market diversification strategy through Promotur is still in progress, which is what has allowed increased connectivity for this year and in the heat of the new Tenerife-New York route, a prospecting campaign is going to be carried out In United States. “We are little known and we need to show ourselves more because it is a tourist with higher spending at the destination”, he has indicated.

Regarding the reception of Ukrainian tourists in hotels, he pointed out that “it is not incompatible” with having a good summer season apart from the fact that “they are refugees”, they need help and they will be well treated, which will result in the image of the archipelago.



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