The latest data from the National Statistics Institute (INE) on the arrival of foreign tourists to Spain gives us a negative perspective of the situation of one of the country's major economic engines (it accounts for 15% of the national GDP and 34% of the Canary Islands' economy). And that directly affects Lanzarote. These data show that the growth rate compared to the previous two years has decreased, which suggests a cooling or stagnation in the economy and tourism.
Currently, the Canary Islands are the first destination for foreign tourists arriving in Spain, accounting for 20% of the total number of visitors according to data from Promotur This means that any decrease in the number of visitors will inexorably and immediately affect the region. Therefore, we must be careful and pay close attention to the data that is being presented.
There are several reasons that explain the decrease in the number of visitors, but mainly they are due to the increase in tourism competition from other countries. For example, the reopening of cheaper destinations with a similar 'sun and beach' offer such as Egypt, Turkey or Tunisia, which also have a much more attractive cultural offer given the expectation offered by their historical cultures. According to hosteltur Egypt has been registering an upward trend since 2016, going from 5.63 to 8.3 million foreign visitors. In addition, the prospect is that they will reach 25 million in 2020. These data may not pose a threat to those readers with a small perspective, but together with the INE data and from a broad point of view, they pose a threat to the main economic engine of the Islands. Why? Because all tourist markets are related and compete with each other. Thus, two tourist destinations that offer the same thing (sun and beach) will have to increase their attractiveness by diversifying their tourist offer or reducing their prices, and in this case Egypt is cheaper and has a millenary culture that is excessively attractive. Until now and since 2010, the advantage had been for Spain given the security offered to foreigners, since every visitor prioritizes this factor in their visit to other countries. The problem for the Canary Islands begins when countries like Egypt or Tunisia begin to leave behind the revolutions of the 'Arab Spring' while achieving greater stability and internal security. This perception of security together with reduced prices translates into the diversion of tourism to these countries by tour operators. This is what they stated in May 2018
But what is happening is nothing new, nor is it inevitable. The Spanish and Canarian market had been warned for a long time that these countries were a threat to our tourism. For example, in 2010 (the Arab Spring began in December of that year), Egypt received its record number of foreign tourists to date with a total of 14 million visitors to later suffer a recession that has led it to 5.3 million in 2016 and 8.3 million in 2017. The same year of the Egyptian record, in the Canary Islands we reached the figure of 10.43 million , and since then the figure has been increasing until reaching 15.98 million in 2017. But this data alone does not mean much. Already in the period 2003-2010 we can observe a similar behavior. In 2003, the Canary Islands received 9.8 million tourists, suffering a gradual reduction and stagnation until reaching the figure of 7.8 million in 2009. In that same period, Egypt went from 5.7 to 12 million. Coincidence? No.
Tourism is one of the most important sources of income for countries such as Morocco, Egypt, Tunisia or Turkey. In the case of our neighbor, tourism is the second source of employment and 8% of its GDP. Its beaches, its desert, its 'souks', its history, its prices and the fact that it remains a traditional country, make it a fashionable tourist destination. The 'conejeros' know this, and whoever has gone to the Panda Raid or Marrakech will be able to confirm it. Therefore, it is natural to think that they will do everything possible to snatch tourists from obsolete destinations or those lacking a renewed and interesting offer that also have prices that are too high. Thus, it is important that the Canary Islands diversify its tourist offer based on a central pillar of 'sun and beach'. We need to be more competitive, offer better services and more quality in leisure and cultural activities because our economic model prevents us from reducing our prices too much. And that is our Achilles heel. We have the climate, the infrastructure and the security necessary to turn the Canary Islands into a permanent tourist destination, but for this we must take advantage of the elements that I have mentioned. For example, it is somewhat disappointing that celebrating the 2nd toughest Ironman in the world (attracting 1500 athletes from all over the world), Lanzarote does not have a cyclist route that allows a safe route for them while making it possible to avoid accidents and delays in the journeys of vehicles that carry out tourist tours or transport goods, not to mention the workers or tourists who go by rental car. This would be an attraction for a huge number of sports tourists who see their lives in danger when going out on the roads riding their bicycles, and who account for 2% of the tourist GDP according to the World Tourism Organization. Moreover, according to Juan A. Carreño Clemente: "in 2013 8.7% of tourists who visited Lanzarote did so for sports reasons". This data offers us a window of possibilities that the same author exposes in his study "Impact of the organization of international sporting events in the Canary Islands on tourist activity. The Ironman of Lanzarote" and that neither the 'conejeros' nor the politicians should ignore. In the cultural section we have another example that is illogical and that is that the recovery of the large salt mines of Arrecife is not promoted or the Salinas de Janubio are not turned into a museum, as they have done in La Palma with the Salinas de Fuencaliente.
It is evident that I could ramble on lines and lines of proposals to improve the island and increase its offer to make it more attractive, but it is also true that we will not only solve the problem of competitiveness there. It is also important that the business sector is concerned about improving the quality of service and customer care. Thus, it is incomprehensible that in the period between 2011 and 2017, the unemployment rate has only gone from 34% to 18.50% in Lanzarote. This decrease represents 10,000 jobs, with 5,000 in the hotel sector according to data from http://www.datosdelanzarote.com/index.asp . And it is incomprehensible if we observe that the number of foreign visitors in Lanzarote increased by 1 million, and that total income (Hotels) has gone from 254 million in 2011 to 429 million in 2016 thanks to an increase in the average rate and the occupancy rate according to the statistical yearbook of Lanzarote of 2016, page 73. And I say only because it is also not understandable that, technically, the level of spending on personnel remains in most of the hotels on the island while revenues increase. What tourist, Spanish or foreign, likes to pay an all-inclusive and have to queue at the buffet, at the pool bar or wait while they finish their room at 4:00 in the afternoon? Not me, and I have experienced it in Lanzarote. And surely no one who spends 300-500 euros for a couple of nights in a 5-star hotel. It is somewhat depressing to know that in cheaper destinations the quality of service and customer care is in line with the level of the hotel, while here it is the opposite. And with this I am not saying that there are no good hotels in Lanzarote, which there are.
If one stops to meditate on what I have just exposed, one could come to the conclusion that the tourist 'crisis' suffered in the Canary Islands between 2003 and 2010 could have developed a short-term exploitation position in hotel entrepreneurs in the subsequent period, knowing that the 'cake' could end at any time. Hence, they have not increased personnel expenses and are accumulating income by exploiting the worker and the tourist. Although, seeing the data, it is certain that many hoteliers are beginning to worry. If we add to this a certain managerial inability of our public representatives, things look bad. You only have to remember the unlikely proposal of a new airport or the statement of a certain politician about the inexorable expansion of tourist places in Lanzarote. The problem with all this is that the worker and, therefore, the 'conejero' himself will suffer the consequences of a business community and a group of politicians incapable of conceiving the development of a tourism that favors everyone and that is able to compete against the only thing we cannot compete with, the price of destinations in countries like Egypt or Turkey. Expanding the offer, improving the quality and making the Canary Islands (and Lanzarote) a destination that is worth its price is a priority that all social actors on the island should put on the table tomorrow, because when tomorrow is late no one will be able to deny that it was not seen coming.
By Alejandro Pérez O'pray, Student of Political Science at the UNED.
