The interconnection between the German and Gran Canarian economies is once again evident in the face of the labour crisis that Germany is experiencing. "The Canary Islands are, in view of the winter season, the most popular destination, followed at a distance by Egypt and Turkey," says Turespaña, although they point out that, "the set of long-distance destinations is, in absolute numbers, the one that has the largest market share in the package holiday segment." Job cuts in key industrial sectors, such as the automotive and steel industries, could have a direct impact on tourist destinations such as Maspalomas. For businesses in the Canary Islands, the positive forecasts for German tourism represent an opportunity to increase their income and strengthen their position in the market.
In its forecasts for the 2024/2025 winter season, the association of tour operators and agencies DRV foresees a 4% increase in turnover due to the "high number of advance bookings" recorded and the "capacity and bookings lost" following the bankruptcy of FTI, which will be "fully available through other operators". German tourism represents a fundamental source of income for the economy of Gran Canaria, and any decrease in tourist spending by Germans could create challenges for the service sector in Maspalomas. Germany's economic stability is therefore a crucial factor for the economic well-being of tourist destinations such as the south of the island.
Some of the country’s biggest employers have announced planned job losses, including 11.000 at steelmaker Thyssenkrupp, 3.800 at Bosch, the world’s largest car parts maker, 2.800 at rival Schaeffler and 2.900 at Ford. The job cuts, which follow the threat of Volkswagen’s first German plant closures, will loom large during an election taking place as the country suffers its deepest economic crisis since the early 2000s. According to a study by the German Institute for Economics (IW), the German economy is unlikely to emerge from recession by 2025. According to new economic forecasts from the IW, German gross domestic product will contract by 0,2 percent in 2024 and grow by just 0,1 percent in 2025.
