The island boasts a record number of employed individuals, exceeding 436,000, with an unemployment rate of 13.3%, the lowest since 2007.
SANTA CRUZ DE TENERIFE, 15 Nov (EUROPA PRESS) –
The island of Tenerife continues to experience “robust” economic expansion, propelled by a strong performance in the services sector, predominantly tourism, which welcomed 5.3 million visitors in the first three quarters of the year, with expectations of a “promising 2025.”
This was highlighted by the general director of the Chamber of Commerce of Santa Cruz de Tenerife, Lola Pérez, during the presentation of the economic situation report corresponding to the third quarter of the year, with the vice president of the Cabildo de Tenerife, Lope Afonso, the Minister of Industry, Manuel Fernández, and the president of the Chamber, Santiago Sesé, present.
Pérez remarked that Tenerife “leads” the economic growth within the Canary Islands, showcasing an unemployment rate of 13.3%, a figure not observed since 2007, alongside a record number of Social Security affiliates, with over 426,000 individuals, nearly half of the total in the Canary Islands.
Business confidence has risen by 3.2%, with Pérez noting “positive expectations” for the year’s end. However, she perceives the decline in the productive base as the “Achilles’ heel” of the island’s economy, which has not yet returned to the number of businesses that existed prior to the pandemic.
By sector, she indicated that agriculture performed “well” over the last summer, while both industry and construction showed “moderate” growth, which is primarily driven by services, the “engine” of the island, particularly tourism, which “has continued to expand.”
She detailed a 13% rise in tourists this year, alongside significant increases in holiday rentals, with hotels and apartments seeing growth of 5.5% and 9.4%, respectively.
“MODERATE SATISFACTION”
Afonso conveyed “moderate satisfaction” regarding the island’s economic progress, though he acknowledged the presence of some “challenges” such as work absenteeism, business creation, and the establishment of jobs with “greater stability.”
“It is a good moment for the island’s economy,” he stated, underscoring that “stability” and “common sense” policies in collaboration with the private sector are effective, evidenced by enhanced tourism profitability and expenditure on the destination.
He also cautioned about the potential repercussions of Canarian legislation on holiday rentals and a possible “freeze” in supply that might dampen some additional tourism demand, which is projected to remain stable throughout the upcoming year.
Sesé emphasised the “solid growth” of the Tenerife economy, solidified as the “driving force” of the Canary Islands, but called for improvements in the implementation of Dual Vocational Training and access to housing, as many job opportunities are being lost due to the lack of available properties.
He further urged the Cabildo to designate Tenerife South airport as a sensitive area to mitigate taxi queues, to enhance passport control services by the Ministry of the Interior, and to simplify administrative processes to stimulate investment.