The tourism industry in the south of Gran Canaria It faces a change of cycle characterized by the exponential growth fatigueThe latest official data published by the Canarian Institute of Statistics (ISTAC) The figures for May reveal a scenario of stagnation in hotel profitability of the island, a phenomenon that contrasts with the aggressive price increases experienced by other competing destinations in the archipelago such as Tenerife o LanzaroteThis slowdown in the accommodation business is beginning to have a direct impact on the job market. San Bartolomé y Mogán, where the signing of new employment contracts has suffered a severe collapse.
La Average Daily Rate (ADR) In Gran Canaria, the average daily rate reached €110,49 in May, representing a modest increase of just 1,61% compared to the €108,74 recorded in the same month of the previous year. This figure contrasts sharply with the strong performance of the other islands: Tenerife led the price increases with an 11,01% rise, reaching an average rate of €119,55, followed by Fuerteventura, which saw its rates jump by 8,76%. Gran Canaria's loss of competitiveness in terms of revenue also coincides with a slight decline in its occupancy rates, which fell to 59,75%, consolidating the island's position at the bottom of the regional occupancy rankings, ahead only of Fuerteventura and La Palma.
The slowdown in the accommodation business has impacted the personnel policies of the major hotel chains in the south. Companies in the tourism sector formalized a total of 6.564 contractsThis represents a year-on-year contraction of 8,41% compared to May of the previous year, a decline in line with the trend of contract paralysis affecting the entire archipelago. Food and beverage services, essential for the leisure area of Playa del Inglés and Meloneras, led the activity with 2.408 new signatures, closely followed by accommodation services, which recorded 2.311 contracts.
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Despite the drop in new job creation, the total number of unemployed in the tourism sector in Gran Canaria fell by 3,78% year-on-year, bringing the absolute figure to 11.783 unemployedThe hospitality and restaurant sector continues to account for the bulk of job seekers on the island: food and beverage services accumulate 5.744 people unemployedwhile tourist accommodation keeps 2.638 people on the unemployment lists. Ground transportation, key for passenger transfers to southern resorts, accounted for 1.026 unemployed compared to the meager 372 contracts signed in the month.
Data from ISTAC confirms that Gran Canaria's accommodation model has entered a phase of margin consolidation, unable to replicate the double-digit increases seen in its neighboring regions. The provincial analysis demonstrates that tourists are willing to accept price increases in destinations with a revamped and luxury-oriented hotel offering, an area where Tenerife has gained a considerable statistical advantage by exceeding the €119 per night mark.
The other side of the coin is once again represented by La Palma, affected by a structural price crisis that plunged its average daily rate to €72,83, registering a 0,40% decline amidst the ongoing process of rebuilding its tourism brand. The "Beautiful Island," however, saw a spectacular 46% increase in its occupancy rate, climbing to 46.59%. For tour operators managing cash flow in Maspalomas hotels, the message from May's statistics is clear: growth based solely on raising room rates has reached its limit, forcing the sector to seek new ways to improve the efficiency of its operating costs.
