With the progressive recovery of the Lanzarote hotel sector and an "increasing" occupancy, the rates that tourists pay to stay have also experienced significant increases, of up to 20 euros per day compared to the years prior to the pandemic. In this scenario, the workers in the sector have been demanding a salary update for some time, but it has been the new hotel group that will soon land in Costa Teguise, Radisson Hotel Group, who has opened the public debate in the business sector.
In statements collected by the portal of Hosteltur, the CEO of this chain, Federico González Tejera, has been in favor of raising salaries to alleviate the lack of workers in unskilled positions, “where in Europe in general there are shortages”.
In addition, the businessman argues that there is room for it because “there is a demand that has not traveled during the pandemic, wants to do so and is less sensitive to price, as we are seeing in the reservations for the summer”.
“If you want to pay your teams more, you have to raise the price of the room”, adds González Tejera. “The consumer is willing to pay it because the experience is good, so that in turn the hotelier can pay more to the worker, who is the architect of that experience,” he argues.
In the case of Lanzarote, the average rate for tourist accommodation has increased by 10 euros compared to 2019, with a price of 96.55 euros per day in March, if both hotels and apartments are taken into account, according to a report from ISTAC, which collects the Lanzarote Data Center.
In addition, considering the data only for hotels, the price per night has increased by 23 euros, from 88.8 in March 2019 to 111 euros this year. In apartments, the cost has remained stable, around 62 euros.
However, despite this increase in rates, Asolan's spokesman, Paco Martínez, alleges that with the general increase in electricity prices, among others, “the expenses are tremendously higher”, so he considers that the circumstances are still not favorable. “It is an individual decision," they point out from the employers' association. “Whoever can afford it, let them do it,” says Martínez.
In his opinion, there are hotels, “especially in the city”, that “could afford the salary increase, because they have more stable income”, but he considers that this is not the case for everyone.
In addition, although occupancy in March exceeded 86% and in February 75%, he considers that it is still insufficient. "In Lanzarote we are not bad, far from it, but we are not at a very good level in terms of occupancy either," says the Asolan spokesman. "Connectivity has improved a lot, with 5% more flights than last year, but they are not coming full, so the hotels are not either," he insists.
To this is added the uncertainty due to the war in Ukraine, with a direct impact on the prices of electricity, fuel and other raw materials, although the tourism employers' association remains optimistic. "We face the coming months with great hope, if Russia does not make life difficult for us again."
For his part, the president of Hostelan, the association of hotel and restaurant businessmen of Lanzarote, agrees that inflation has meant a considerable increase in the expenses of the sector. However, despite the fact that “some establishments are reluctant to raise salaries, many others are doing so,” he adds.
