SANTA CRUZ DE TENERIFE, 13th April – EUROPA PRESS –
The chief of Ashotel and CEHAT, Jorge Marichal, penned an editorial today, Saturday, amidst the debate surrounding the tourist tax implementation and the upcoming protests on 20th April against the current tourism model in the Canary Islands. He drew a comparison likening tourism to “a pinata full of goodies that is being mercilessly attacked until it breaks open.”
Jorge Marichal argues that tourism “in the Canary Islands has transformed into that bountiful pinata facing assaults from all directions, especially from some who have occupied political positions in previous administrations. These critics, who now distance themselves from the future of our Islands, are quick to jump on the bandwagon decrying a model they claim to be failing. Only a handful of parties seem to uphold their longstanding principles.
The head of the tourist association expresses solidarity “with many of the concerns of the community groups protesting due to the inadequate management of numerous public facilities essential for our region. Residents are tired of the unaffordable housing, congested roads for commuting, and subpar public amenities.”
Nevertheless, in response to the emotionally charged arguments, Jorge Marichal relies on data to “counter political opportunism and defend a sector that, while not flawless, has elevated these lands to a premier European destination.”
Marichal underscores that tourism “comprises not just hotels and apartments. It encompasses air, land, and sea transportation, travel agencies, car rentals, tour operators, eateries, and bars; a sector that currently contributes a notable 35.5% to the Islands’ economy and directly employs 40% of the populace.”
He highlights that tourism “also generates a staggering 3,400 million Euros in taxes, a sum that could match the entire 2024 education budget for the Canary Islands (2,373 million), social services (711 million), industry and energy (139 million), housing and construction development (122 million), or over 80% of the total health budget (4,108 million).” Furthermore, he points out that the hotel industry alone, occupying a mere 4% of the Canary Islands’ land, employs over 81,000 individuals in the region out of a total sector employment of 264,000.”
ONE TOURIST AMONG EVERY TEN INDIVIDUALS.
The Ashotel leader notes that the Canary Islands have witnessed a population surge of over half a million since the turn of the century (from 1.65 million in 2000 to 2.2 million in 2023) and believes that this demographic strain on limited land has outpaced necessary infrastructure development. He also observes that for every 10 residents on the islands, there is 1 tourist; which means, on average, there are 268,000 tourists daily in the Canary Islands alongside 2.2 million residents, according to governmental statistics.
Jorge Marichal further highlights the dearth of public housing construction over the years and underscores, “An unregulated trend has emerged, blurring the boundaries between residential and tourist properties.” He notes that vacation properties now total 220,000 units in the Canary Islands, a relatively recent trend that “has grown unchecked, causing market distortions: long-term tenants are displaced to make room for tourist accommodations.”
“It is akin to adding 550 hotels with 400 beds each in the Canary Islands during the past decade,” Marichal remarks, adding that during this period, the region has observed a decrease of 56,700 beds, both hotel and non-hotel, from 428,626 to 371,915. This reduction is attributed to the residential conversion of complexes or refurbishing outdated establishments, adding value to the destination.”
The Ashotel president asserts that the Housing Law enacted in May 2023 has exacerbated issues as it “has created legal uncertainties for property owners, unsure of actions to take if a household faces financial challenges causing rental non-payment.” He shares instances of landlords refusing to lease to families with children due to this vulnerability risk, which has contributed to the scarcity of long-term rental properties in the Canary Islands. “Laws that compound issues rather than solve them are futile,” he remarks.
Marichal also mentions the challenge faced by workers in securing reasonably priced accommodations. While acknowledging that this problem isn’t solely responsible for the housing crisis in the Islands, he acknowledges that it significantly fuels social discontent.
“WRONGLY LABELLED TOURIST LEVY”
He criticizes the misnomer of the tourist tax, stating, “It essentially translates to a levy on overnight stays, funneling into a bottomless pit of taxes.” He questions the endorsement of this levy by many who previously opposed it while in power, or have now resurrected it solely due to impending protests on 20th April.
Jorge Marichal maintains that only a few parties maintain their consistent stance, similar to the employers’ association, and questions again, “What can be achieved with 98 million Euros annually (assuming 14 million tourists x 7 days average stay x 1 Euro/day) that cannot be accomplished with the 3,400 million Euros generated through tourism taxes?” “We await concrete propositions, not mere announcements,” he stresses.
He underscores that the focus should not solely be on 20th April’s events, but rather on the subsequent days. He stresses that Ashotel “will engage in any discussions that offer effective and rapid solutions grounded in reason rather than sensationalism and political opportunism.” “The bureaucratic hurdles in this region have long been endured, and effective territorial management and planning are imperative today. Let’s work together, steering clear of opportunism and electoral gains, as today’s leaders may be replaced tomorrow. The Canary Islands demand a comprehensive agreement transcending political ideologies,” he concludes.
