The Santa Cruz de Tenerife Chamber confirms a steady increase in tourists opting for vacation rentals and calls for their regulation
SANTA CRUZ DE TENERIFE, 10th June (EUROPA PRESS) –
Tenerife saw a surge in tourism during the first quarter of the year, welcoming over 1.9 million visitors – a 15% increase compared to the same period last year. The island also reported 493,150 employees, with an unemployment rate dipping below 15% for the first time since 2008, which led to the employment of 70,000 more people.
Vice President of the Cabildo and Minister of Tourism, Lope Afonso, described Tenerife as an “island in shape” that promotes economic activity and job growth. However, he acknowledged that there are challenges to address, such as developing strategic sectors, ensuring generational change in the primary sector, and enhancing tourism quality through proper regulation of vacation rentals.
These findings were presented in the latest Economic Situation Bulletin released by Afonso on Monday, accompanied by Minister of Industry, Commerce, Primary Sector and Animal Welfare Manuel Fernández; Chamber of Commerce President Santiago Sesé; and Chamber Secretary General Lola Pérez.
Perez noted that the year started off “very positively” in terms of activity and employment, with the retail sector experiencing a slowdown after the Christmas season and a slight decrease in car sales following increases in 2022 and 2023.
She also highlighted the continual growth of the industrial sector on the island, with over 1,300 companies, and the stabilization of the construction sector with 2,645 companies and more than 26,000 jobs. Perez emphasized that tourism remains the driving force of the island’s economy, with significant occupancy rates over the past decade.
Despite a 1.4% decline in business confidence, nearly 85% of companies anticipate maintaining or improving their results in the next quarter.
Sesé praised the positive trends in the labour market, with 41,000 more workers compared to the previous year, a decrease of over 22,000 in unemployment, and a growth of over 19,000 in the active population.
However, he highlighted a shift in tourism towards vacation rentals, as the hotel sector only saw a 6% increase. He stressed the need for regulation and quality control in this sector to combat unfair competition.
Chamber President highlighted the necessity for administrative simplification and improved management of Next Generation funds as they present an “opportunity,” though the delays in implementation are hindering their impact on SMEs.
Establishing Quality Criteria for Vacation Rentals
He also pointed out that employers are empathetic towards citizens’ concerns about vacation rentals leading to increased residential rental prices and workers having to live farther away from their workplaces, creating mobility challenges.
Afonso mentioned that the draft law introduced by the Canary Islands Government aims to set quality requirements for vacation rentals and shift the focus towards quality rather than quantity. He expressed the need for intervention by the Ministry of Consumer Affairs to streamline the process, as the Canary Islands already have mechanisms to verify the legality of offers through digital platforms.
According to him, the solution lies in amending housing laws, as many residential properties are transitioning into tourist accommodation due to owners’ concerns about property recovery.
