iran war impact canary islands tourism warning

Iran War to Impact Canary Islands Tourism, Warns Minister

Minister Warns of Tourism Impact from Iran Conflict

The Canary Islands Minister for Tourism and Employment, Jessica de León, warned on Thursday that the war in Iran will have consequences for the islands’ tourism sector. These could include absorbing tourists from the Middle Eastern market and increased inflation due to rising fuel prices, which would make holiday packages more expensive and reduce overnight stays.

Diverted Tourists and Limited Capacity

Responding to a question from Vox in a parliamentary committee, De León confirmed that, due to the conflict in Iran and nearby countries, there is a diversion of tourists from the Middle East, with the Canary and Balearic Islands as the main beneficiary destinations. She cited the example of tour operator TUI announcing new connectivity from Hanover, Stuttgart, Düsseldorf, Frankfurt, and Munich to destinations including Mallorca, Fuerteventura, Gran Canaria, Lanzarote, Crete, and Rhodes.

However, she specified that the archipelago, with an average occupancy rate above 80%, has little room to absorb a sudden increase in tourist numbers.

Strategy Focuses on Market Diversification

The minister indicated that to cushion this situation of rising costs, the strategy has been to diversify markets. Examples include Portugal, with a 34% increase in airline seats, the Czech Republic (+12%), Poland (+17.8%), Ireland (6.3%), and the Nordic market (4.9%).

In general, and although German travel agencies have lost 13% of their booking revenue, the minister commented that the Canary Islands has stabilised its airline capacity for the coming months, with 2% more international flights this winter and a loss in the domestic Spanish market.

Vox Acknowledges Need for Strategic Rethink

The deputy spokesperson for Vox, Paula Jover, acknowledged that there is a stabilisation in tourism demand following the post-pandemic boom that led the Canary Islands to break records. She did not hide that the war in Iran will have an impact because flight prices will rise.

Thus, she understands that the new military conflict forces all tourism and economic operators to rethink their strategies, as the islands’ economic engine is highly sensitive to changes in airline seats, employment levels, prices, or accommodation occupancy.

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