The economic engine of southern Gran Canaria received a warning this Thursday that has set off alarm bells in the tourism sector of Maspalomas and Playa del Inglés. Ryanair, the main driver of low-cost traffic at Gando Airport, has issued a direct challenge to Aena's plan to increase airport fees by 21% over the next five years. For the Irish airline, this increase is not just a figure on a balance sheet, but "a nail in the coffin" for the connectivity of outermost regions that depend vitally on air travel.
The Canary Islands' tourism sector is an unwitting hostage to a cost conflict that threatens to dim the summer season's luster in favor of African and Balkan coasts. Ryanair warns that the plan to increase airport fees by 21% over the next five years will be "a victory for Aena's monopoly that the citizens of the Canary Islands will pay for with lost routes, jobs, and growth."
The outlook for the south of the island is particularly grim because, while direct competitors for European tourists are opening their doors with aggressive incentives, Ryanair has confirmed that its growth in Spain this summer will be virtually nonexistent (less than 0,5%). Conversely, the company has decided to divert its fleet to destinations with more competitive access costs: Morocco will grow by 11%, Italy by 9%, and Albania by an astonishing 60%. This loss of air capacity threatens to bleed passenger traffic to the archipelago dry, depriving hoteliers and businesses in southern Gran Canaria of thousands of potential customers.
The low-cost carrier asserts that Aena's high-price policy is a victory for the public-private operator's "monopoly," but an unmitigated defeat for local employment and economic growth. The company maintains that Aena's logic is the inverse of the global market: while other countries reward increased passenger numbers with lower fees, in Spain success is penalized. "Spanish regions are paying the price for a failed policy," the airline laments, pointing out that the lack of intervention from the CNMC (National Markets and Competition Commission) and the central government is leaving the islands defenseless against international competition.
In southern Gran Canaria, where air connectivity is the lifeline that sustains the entire social and economic structure, Ryanair's message is a cry for help. If fares continue to rise, route adjustments will be "inevitable," resulting in fewer flight options for European tourists and, consequently, a decline in the profitability of accommodation establishments in the south.
