Tourism business associations in the Canary Islands, including the Federation of Hospitality and Tourism Entrepreneurs of Las Palmas (FEHT Las Palmas), Ashotel, the Association of Tourism Entrepreneurs of Fuerteventura (Asofuer), and the Lanzarote Tourism Federation (FTL), are raising concerns about proposed widespread deregulation of residential uses in tourist establishments. They warn that such changes could jeopardise the non-hotel tourism sector, leading to severe consequences for jobs, economic activity, tax revenues, and the overall quality and competitiveness of the region as a tourist destination.
The associations acknowledge the need to address various situations that have developed over decades in many tourist complexes. They argue for regulatory reforms that reflect current market realities, while cautioning against unchecked liberalisation that could undermine the very purpose of these establishments.
Representatives from FEHT, Ashotel, Asofuer, and FTL support the work currently being undertaken by the Canary Islands’ Department of Tourism and Employment to adapt regulations while ensuring that tourist establishments can continue operating effectively. They maintain that it is vital to preserve the costs, services, and obligations required to maintain high-quality tourist facilities. Key aspects such as communal areas, facility upkeep, and consistent quality standards should not be compromised due to fragmented interests within each complex.
These organisations assert that the debate extends beyond the interests of individual owners or companies, emphasising the importance of sustaining a subsector that is crucial to the Canary Islands’ tourism model. This sector supports thousands of jobs and generates significant income for local governments. Research from the Institute of Tourism and Sustainable Economic Development (Tides) at the University of Las Palmas de Gran Canaria highlights the economic and employment impacts of transforming tourist accommodations into residential properties. A 2024 study estimated that such conversions could result in annual revenue losses of €3.586 billion, alongside €943 million in reduced fiscal income and the loss of around 88,000 jobs.
The associations state that these figures necessitate considering any legislative changes in the context of general public interest. The gradual conversion of tourist units into residential properties affects not only individual property owners; it diminishes regulated accommodation capacity and undermines the economic viability of establishments, which ultimately threatens employment and public revenues. Uncoordinated uses can lead to greater fragmentation within complexes, making it increasingly difficult to maintain shared amenities and services.
Business leaders have previously highlighted the link between the trend of converting tourist properties to residential use, declining activity, and the deterioration of the tourist destination itself. Evidence presented by various associations indicates that these processes impact public revenue and employment.
While FEHT, Ashotel, Asofuer, and Asolan recognise the need to address specific cases and review enforcement procedures affecting certain owners, they oppose any legal changes that would broadly enable residential use in properties originally designed for tourism. They stress the importance of finding a balance between individual rights and collective interests that affect the Canary Islands as a whole. The non-hotel sector forms a vital part of the islands’ tourism history and contributes to the local economy through small and medium enterprises.
Additionally, they point out that property owners who can demonstrate residential use of their tourist properties prior to January 1, 2017, can continue this use as legally permitted. Therefore, they believe there is sufficient scope to acknowledge and protect established residential situations without allowing newly designated tourist accommodations to shift away from their intended purposes.
