The funds that own hotels in the south of Gran Canaria do not know what to do: whether to raise prices or keep the cashier discreetly full. The last time there was an element of financial tension due to an international security problem, Thomas Cook went bankrupt, as reported in 2019 by PwC, which placed the blame on hoteliers (actually the funds that own hotels). The tourism bubble has begun because the massacre in Israel has been largely against tourists. The tourist press in Las Palmas has not said anything yet, which is where the hotel representatives from the south of the island speak.
Leaving the human side in a corner, the consequences of all this should not be especially negative for Gran Canaria tourism, as long as the stability of the region and the violent expansion of Iran in the field of security do not further complicate the conflict and This is limited to Palestinians and Israelis. The problem in the south of Gran Canaria, however, is another: the party owners of Las Palmas wanting to treat the neighbors and professionals in the sector as if this were a medieval regime with remote control.
It is clear that any extension of the same to oil-producing countries, led by Saudi Arabia, could increase the price of crude oil with negative inflationary effects for the West and would mean higher rates for a longer period of time and falls in the stock markets if the above caused a recession. The attack comes precisely when Gran Canaria Tourism had made progress in the arrival of tourists from that country to the island.
The conflict has the potential to damage the overall sentiment of traveling to markets of that influence, but it is not certain. Much will depend on whether the conflict is contained or escalates – for example, on Israel's northern border – and this could raise additional concerns about raw materials, especially oil. The price of oil has been quite volatile in recent weeks and a further increase could be reflected in consumer prices in the coming months.
