The record year 2023 encompasses not just the number of tourists who traveled to Tenerife, but also the number of jobs in the workforce and the number of unemployed individuals.
Tenerife achieved unprecedented success in the tourism sector last year, with a record number of visitors that exceeded all expectations.
This milestone not only strengthened the local economy, but it also accentuated the challenges associated with rapid growth, such as pressures on the labor market and housing. This success story and its associated complications highlight the need for a sustainable and balanced approach to tourism development on the island.
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In the record year 2023, Tenerife welcomed over 6.5 million tourists, which is 10% more than the previous year. The data can be found in the bulletin issued by the Chamber of Commerce of Santa Cruz de Tenerife.
The tourism sector created approximately 3,900 additional jobs, bringing the total number of employees in the tourism sector to 68,000. Furthermore, Tenerife also broke the record for the number of working people. Over 426,000 individuals now find a place in the labor market, although unemployment rose to 16.8%. Both the island government and the Chamber of Commerce attribute this to the strong growth of the active population.
The vice president of the island government aims for qualitative growth in tourism and not necessarily a significant increase in the number of tourists. If tourism can define its competitive position through quality, it will no longer depend on the quantity and mass.
Employment
The Minister of Tourism, Lope Afonso, emphasizes the island’s success but calls for responsible leadership and addressing structural economic problems. It is incomprehensible that the unemployment rate does not fall below 15% despite significant economic growth and that companies cannot find enough workers.
He has also warned about the increase in sick leave, which damages the quality of tourist services, and the problems with training, which are not in line with the demands of the productive fabric.
Vacation Rental
He acknowledges that the lack of control over vacation rentals is a reason for the disruption in the housing market, but recognizes that a planning problem in the past is responsible for this. There is inequality among municipalities, creating tensions. There are regions with ample space for housing development where policy fails and areas with perfect housing policy but no possibilities to expand public housing facilities.
When Europe releases economic funds for the Canary Islands, the European Commission can propose restrictions that may limit the number of tourists or regulate real estate. As a result, a redistribution can be conceived to offer rental homes partially to local residents and regulate the rental market for foreign tourists.
Consolidation
The president of the Chamber of Commerce, Santiago Sesé, proposes 2024 as the year of consolidation, a time when we must advocate for sustainability in tourism and a reformation in the implementation of infrastructure related to mobility and connectivity.
He has indicated that the housing shortage causes problems in finding staff and has called for deep reflection with the demographic pressure on the island. Tenerife has been growing by almost 10,000 people per year on average since the year 2000, leading to tensions with public services, habitable area, and natural resources.
Decrease in hotel beds
Tenerife is the most populated island of the archipelago with more than 944,000 people, counted on January 1, 2023. The island accounts for 48% of the population growth in the Canary Islands since the year 2000. Until 2011, Tenerife experienced the most significant population growth, after which the figure weakened.
He has also called for the regulation of vacation rentals to be well framed and to target the potential ailments caused by the increase in tourism. We are already seeing a decrease in the number of hotel beds, caused by the booming business of private vacation rentals.
Without drastic intervention, Tenerife will suffer under the pressure cooker named ‘tourism.’ For now, we can enjoy the record year 2023.
Guy Devos © Photography
Record year 2023 ©
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