Canary Islands Accuses Madrid of Hiking Airfares Contrary to Promises

“We profoundly regret the Spanish Government’s refusal to reconsider,” added De León. The regional governing body had repeatedly cautioned Madrid that there exists an Archipelago in the State where air travel is realistically the only means to arrive at or depart from it.

Additionally, this same autonomous community heavily relies on tourism as a crucial pillar of its economy; In 2022, accommodation activity contributed 35.5% to the Gross Domestic Product (GDP) of the Canary Islands, according to Impactur. “It’s unjust,” remarked the President of the Federation of Hospitality and Tourism Entrepreneurs of Las Palmas (FEHT), José María Mañaricua, who stated that “any rise in prices hinders travel between the Canaries and the Peninsula, and discourages tourists from visiting the Islands.”

There was no room for discussion, as Secretary of State for Transport, José Antonio Santano, clearly stated to Pablo Rodríguez, Minister of Public Works, Housing, and Mobility of the Government of the Canary Islands, on Thursday: the tariffs are increasing, and airlines will have to bear this increase at the eight airports of the Archipelago. This will also apply to the rest of the aerodromes in the Aena network (Spanish Airports and Air Navigation).

Adherence to Dora 2022-2026

The Canarian Minister of Tourism also addressed the rejection of an exemption for the Islands. “This is regrettable, The Canary Islands could be exempt as our REF allows. (Economic and Fiscal Regime),” he noted. Particularly, he stressed the importance of doing so in a scenario where the community’s request was to “adhere to Dora 2022-2026.”

Noncompliance, in any case, does not exceed legal limits. Aena has the option to pass on unforeseen additional costs based on a ten-year-old law. This decision was made by Aena’s president, Maurici Lucena, last summer. The tourism sector across the country objected to this move from the outset. The General Secretary of the Tourism Board, Carlos Abellá, expressed regret at the approval of the hike, especially when the airport manager had recorded an “8% profit” and was preparing to distribute dividends among its shareholders.

The President of the Hotel and Non-Hotel Association of Santa Cruz de Tenerife (Ashotel), Jorge Marichal. pointed out that 49% of Aena’s capital is private, and the partners demand that the additional costs brought on by inflation be transferred. He argued, “We will practically remain at the 2019 levels,” highlighting that it represents “a significant loss of competitiveness.”

According to the President-Manager of the Island Association of Hotel and Tourist Apartment Entrepreneurs of Lanzarote (Asolan), Susana Pérez, this is driven by “the lack of sensitivity displayed by the central government towards the archipelagos.” Similarly, Antonio Hormiga, on the island of Fuerteventura, cited the “distinctive treatment that the Canary Islands should receive” when decisions impacting airfare are made.

“We rely on tourism, and air travel is our only means of transportation,” continued the tourist entrepreneur from Fuerteventura, concluding that any rise in operating costs “considerably impacts” them, particularly when it is not an isolated occurrence but part of a framework of heightened fiscal pressure.

Emission Rights

In addition to the 4.09% increment coming into effect next month, a 20% increase that the German authorities will include in the tax component of airfares is being added. Germany is the second-largest source market in terms of clients who vacation in the Archipelago’s accommodations. Furthermore, there is the payment for emission rights for polluting gases that came into effect on the first day of this year.

The 4.09% approved increase by the central government has been regarded as “a lesser evil.” Let’s wait and see how the revenue from this increase will be utilized. If it is intended to merely appease us, then it is not acceptable. However, “If the investment is directed towards making Tenerife South the airport we need, we will be in agreement.”

According to Jorge Marichal, having to pay for emission rights could “brutally impact the tourism business.” The Canary Islands must convince Brussels of the detrimental effects of this decision on their economy. Otherwise, international flights will continue to be charged, and the exception for domestic and national flights, valid until 2030, will have no grounds for renewal.

Data collection for the Accountability to the European Commission will take place in 2025. This is one of the crucial dates marked in red in this legislative period. “We have to assess its impact,” stated Jéssica de León.

José María Mañaricua recently highlighted that a Scandinavian airline estimated an additional cost of 50 euros per passenger (round trip), resulting in a 200 euros extra cost for a family of four. “A Canary Islander enjoys a 75% discount, but what about a German tourist?” cautioned the president of the FEHT.