A Tourism Paradox in the Canary Islands
The Canary Islands are navigating a fascinating tourism paradox. While a record number of visitors are flocking to the archipelago, the number of available beds in traditional accommodations like hotels, villas, and apartments has actually shrunk. According to data from the Canary Islands Institute of Statistics (Istac), total bed capacity stood at 368,511 in September, a significant 11% drop (45,880 fewer beds) compared to the same month in 2017.
The Holiday Rental Boom
So how are the islands accommodating this influx? The answer lies in the explosive growth of the holiday rental sector. This “here to stay” form of accommodation, as many industry operators have noted, has absorbed much of the increased demand. Over the last eight years, the availability of holiday rental beds in the archipelago has skyrocketed by 89.6%, adding 145,413 beds to reach a current total of 307,656. A “call effect” from new regulations alone added 45,398 beds (a 17.31% increase) in the last year. The number of registered holiday rental properties has grown in parallel, up 88.5% over eight years to 72,790 today.
The Decline of Traditional Lodging
This growth in holiday rentals contrasts sharply with the decline in traditional lodging. “Meanwhile, traditional accommodation is losing places,” emphasizes Fernando Estany, Vice President of the Federation of Hospitality and Tourism Entrepreneurs of Las Palmas (FEHT). Measured by the number of establishments that remain open, the traditional sector has contracted by more than a quarter (26.8%). Today, the Canary Islands have 1,292 hotels, apartments, bungalows, and villas available to guests, down from 1,765 in September 2017.
Shorter Stays and Changing Patterns
This shift in accommodation types is accompanied by a change in visitor behavior. The average length of a tourist’s stay has shortened considerably. Before the global pandemic, visitors to the Canaries stayed for an average of 7.8 days; today, that has fallen to 6.9 days, an 11% drop that shows no signs of reversing. In the last year alone, the average holiday duration decreased by a further 2.2%.
The Financial Upside for Traditional Business
With fewer beds available and shorter stays, the total number of overnight stays has naturally fallen, plummeting by 10.5% since 2017 from 82.8 million to 74 million. This leads to a critical question: if traditional hotels aren’t fuller, how is the sector thriving? The answer is price intensity. Despite having fewer beds to fill, the sector’s revenue has grown by a remarkable 40%, reaching €4,280.7 million by September.
This price increase can be partly attributed to the inflationary wave that began in 2021 and was exacerbated by the war in Ukraine. However, a significant share of the responsibility also lies with the basic economics of falling supply (the 11% reduction in beds) and soaring demand.
Employment Growth and Community Benefits
While the holiday rental sector enjoys a large portion of the increased arrivals, the traditional business has also caught a part of this intense growth. The result is a classic scenario: more people are coming, they are staying for less time, but they are paying more, which improves overall revenue. This financial health has, in turn, fueled a 20% growth in employment in the sector over the last eight years. In September, Social Security recorded 232,125 registered workers in tourism activities, meaning 38,534 jobs have been created in line with the galloping arrival of travelers.
Addressing complaints about the increased presence of tourists, Fernando Estany points to this job creation and the “redistribution” it represents as a key benefit for the local population. As public leaders emphasize the need for wider community participation in the rewards of the tourism business, Estany affirms, “We are doing our homework.”
