Doris Borrego is the president of the Canarian Vacation Rental Association and in an interview with Radio Lanzarote-Onda Cero she has presented the results of the study 'Trends and Opportunities in the vacation rental market in the Canary Islands'.
Borrego explains that her sector generates 43,000 jobs, contributes 140 million only in IGIC and thanks to its commitment to quality, it has been able to increase income by up to 28% in a year on some islands.
The president of ASCAV also distinguishes between 27% of the tourist beds conquered by Canarian families with vacation homes and 9% in the hands of large holders.
- What are the main findings of the study?
The entire Canarian society can congratulate itself that the vacation home, which is in the hands of Canarian families, has conquered 27% of all tourist beds on the islands.
Vacation homes actually represent 36% of the places, but 9% are in the hands of large housing holders.
- What is the volume of business of vacation homes of Canarian families?
That 27% of tourist beds generates more than 2.5 billion euros on which more than 140 million euros are paid only in IGIC, money that can be invested in making social housing. Why not?
The vacation homes of the Canary Islands are the only ones in Spain subject to indirect tax. Something that we asked from minute one, we didn't even think about it. We have to pay to improve the quality of life of the Canarians and create wealth for the whole of society.
"Campaign booths on a roof... Are they a hotel? No. Are they a pension? No. Are they vacation homes? No. This is an illegal campsite on a roof, but it is attributed to vacation homes, we do not understand."
- And in terms of employment?
Family vacation homes generate 43,000 jobs, hundreds of companies and self-employed people who are dedicated to vacation rentals, which allows our young people to develop here and not only in tourist spots because vacation homes give employment opportunities to all the municipalities of the islands.
- What do you think of the illegal offer, such as campaign tents on rooftops?
Campaign booths on a roof, are they a hotel? No. Are they a pension? No. Are they vacation homes? No. This is an illegal campsite on a roof, but it is attributed to vacation homes, we do not understand.
Those who do not comply and do not register to pay taxes, let the full weight of the law fall on them.
"We are interested in giving quality. We have increased professionalization, digitization and quality in such a way that in 2023 we have been able to increase prices by up to 28% in some islands."
- What do you think of vacation homes that do not meet the standards?
There is still the myth that vacation homes are not regulated and are perfectly regulated, with their requirements and minimum quality.
We are interested in giving quality. We have increased professionalization, digitization and quality in such a way that in 2023 we have been able to increase prices by up to 28% in some islands.
For those homes that are obsolete, that are too small or that do not provide an adequate service, there is a fantastic market formula that is the valuation of customers.
- You attribute the housing problem in the Canary Islands to the Housing Law and empty houses…
I'm just going to give two pieces of data. Vacation homes represent just over 4% of the total housing stock and there are 19% of empty homes. I think those data are overwhelming and speak for themselves. There are five times more empty homes than vacation homes.
If we also take into account that a restrictive Housing Law was approved for the owner, that is, that does not give legal certainty, then obviously the result has been that in 2023 30% of all the homes that were being rented for long term have been withdrawn.
"We have surveyed 900 owners about whether they would pass their homes to the long-term market if they could not dedicate them to vacation and not a single one said yes. They would prefer to sell them or leave them empty due to the lack of legal certainty."
- How many of them have switched to vacation?
Of that 30%, 20% has passed the vacation home. We have surveyed 900 vacation home owners. We have asked them if they would pass their homes to the long-term market if they could not dedicate them to vacation and not a single one said yes. They would prefer to sell them or leave them empty due to the lack of legal certainty.
The case of Tías is particularly serious. The percentage of vacation homes over the total is 9.47% compared to 47.98% of empty homes, that is, 10,000 homes.
- What do you think of the new Tourist Rental Law that the Government of the Canary Islands is preparing?
As of today we do not have either the draft, or any additional information beyond the headlines we read in the press. The only thing we ask of the Ministry of Tourism is that we hope that the new regulation respects and protects us.
The vacation home sector not only generates 43,000 direct jobs and contributes to improving the quality of life of all Canarians with taxes, but it can also allow an owner to send their children to study abroad, and contribute to many other businesses: the baker around the corner, the supermarket, the rentacar, the diving stand, etc.
