The Governing Council of the Gran Canaria Council approves a budget project worth 24,376,077,90 euros
Carlos Álamo, the Minister of Tourism, highlights that “we maintain our commitment to sustainable growth based on increased turnover and not on the volume of customer arrivals because it is being effective. It is a strategy that is giving good results to the sector and to Gran Canarian society.”
The Tourism Department of the Cabildo de Gran Canaria approved this Thursday, November 31, after an ordinary session of its Governing Council, a budget project for the year 2025 with a total value of 24.376.077,90 euros, which implies an increase of 1,26% compared to the year 2024, which was 24.072.728,67 euros. The councilor responsible for the Cabildo's department, Carlos Álamo, explained that this proposal aims to "maintain the commitment we have made since the implementation of the strategy outlined in the Strategic and Marketing Plan for the period 2021-2025 in search of growth that we believe is sustainable and that we understand is giving very good results to the sector based on the key statistics of the turnover in which Gran Canaria leads sections such as spending per client and stay, and the fact that it is the destination where tourists stay the most days. In addition, we are strengthening the process of market diversification, which has also been very positive, thereby reducing dependence on large markets." This project will be submitted to the plenary session of the Cabildo of Gran Canaria for final approval.
“Since the year of the pandemic, we have increased our budget to deal with the recovery work, rehabilitation of the destination and the sector, as well as the consolidation of new tourism products and trends. All this has been structured based on the Strategic and Marketing Plan for the period 2021 and 2025, which clearly focuses on sustainable growth in which the absolute priority is no longer, for the first time, the volume of customer arrivals, but rather on turnover, tourist spending, the enhancement of island products or our ability to make the most of customer arrivals. And the result has been very good for the sector and society. Today, Gran Canaria is the leader in spending, in the number of days that the customer stays and in repeaters, concepts that allow our income to be equal or higher than that of the rest of the island destinations with many fewer tourists,” explained Álamo.
The main key changes in the draft budget are found in two sections. First, there is an increase of 14,78% in Chapter 6 allocated to real investments, which goes from 9 million to 10.747.167,38 euros. Meanwhile, the contribution corresponding to transfers to municipalities and other entities is falling for two reasons. “In the previous budget we had to allocate a double amount to the Impulsa Maspalomas project, which is managed, with other ministries, through the Maspalomas Consortium. The investment corresponding to 2023 and 2024 were included. This year, therefore, this amount is reduced by half. In addition, we understand that municipal governments, being relatively recent, have not had time to develop projects for tourism development. From here we encourage them to do so. It is important. We will welcome them with open arms, since the promotion of tourism in the municipalities allows a more balanced distribution of the wealth generated by the sector and allows more money to remain in the businesses and establishments of the island of Gran Canaria”, explained the councillor.
The minister also highlighted that the new budget maintains its commitment to the Gran Canaria tourism promoters programme in the client markets through the SPEGC management contract and that it allows for the permanent presence of Gran Canaria specialists in the United Kingdom, Germany, Ireland, Austria, the Nordic countries and allows direct work with Poland, Spain, Italy, Portugal, Eastern European countries, France and Benelux. “We understand that this constitutes Gran Canaria's greatest competitive advantage in relation to other competing destinations. We believe that the presence of direct representatives of the tourism sector in the Spanish Tourist Offices of the corresponding embassies has been key in the process of market diversification, to reduce dependence on the main markets, and the increase experienced in the number of clients in Gran Canaria in recent years, with historic highs in many national markets,” argued Álamo.
In another order, the councillor Carlos Álamo highlighted the increase in the allocation for connectivity, which amounts to 1.200.000 euros, as well as the increase in the subsidy for town councils with tourist information offices. He also stressed that the intangible investment in the Nordic, French, Benelux, Swiss, Italian, Polish, American, Portuguese markets and the so-called emerging markets, such as North America or China, is increasing. “These are strategies that seek to attract a customer with a higher spending, as well as a customer more interested in getting to know the whole island, not just products linked to the sun and the beach,” explained Álamo.
The total figure of the proposal of Turismo de Gran Canaria can be divided into large sections. Thus, 14,88% of it will be allocated to personnel expenses; 13,67% to banking and social security expenses; 0,01% to financial expenses; 8,55% to current transfers; 44,09% to real investments and 18,80% to real capital transfers.
In the comparative section with the previous budget, the current document presents an increase of 5,45% in current operations, 2,5% to meet the increase established in the payrolls of civil servants throughout the country, an increase of 6,56% in bank charges, 9,28% in current transfers and 14,78%. The savings in the item corresponding to the Impulsa Maspalomas project and the drop in municipal projects imply a decrease of 25% in this section. The total sum shows the indicated increase of 1,26% compared to the 2024 budget.
The councillor reported that the percentage of execution of the 2023 budget, which with subsequent modifications rose to 23.054.605,25 euros, was 86%, 105% with respect to the initial proposal. Regarding the current budget, Carlos Álamo assured that “we have already exceeded 90% of execution”.
Finally, it should be noted that the budget includes a new allocation of 150.000 euros for the 50th anniversary of the entity, previously known as the Gran Canaria Tourism Board.
