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Tour operators want to know the impact of ETS in the south of Gran Canaria

Tour operators want to know the impact of ETS in the south of Gran Canaria

Yurena Vega Friday, February 14, 2025

European tour operators with interests in the south of Gran Canaria have begun to ask hoteliers whether there is an expected impact on their bills from January 2026 due to the extra cost of transporting food and supplies for hotel renovations due to the tax on polluting emissions that will be applied to ships and which will be passed on to users.

 

Industry sources have given a deadline of 25 February for a response to be provided in order to avoid an impact on their wholesale purchases of beds. "We are not going to tolerate what happened in 2008 when they raised our IGIC on 30 June without it being foreseen in the Budget Law of that year," said a manager of a German operator in Maspalomas.

 

The impact of the extra cost of goods in the south of Gran Canaria due to the inclusion of maritime transport in the Emissions Trading System (ETS) will be significant, although with certain exceptions. Although the Directive provides exemptions for journeys between the Canary Islands and the mainland or between islands in the archipelago, the general increase in the cost of maritime transport will indirectly affect the local economy. 

 

Imports from third countries, such as China or America, will be subject to paying 50% of the emissions on the way to Europe, which will increase logistics costs and, consequently, the final price of the products. This could impact the competitiveness of tourism in Gran Canaria, especially in terms of the increase in the costs of renovating hotels and apartments.

 

The tourism sector, which is essential for the south of Gran Canaria, will also suffer collateral effects. Most consumer goods and supplies for hotels and restaurants come from abroad, and any increase in import costs will have an impact on the prices of tourist services. This could reduce the profitability of companies in the sector or pass on the extra costs to consumers, making the holiday experience more expensive and affecting demand. In addition, goods brought by sea for the maintenance of hotel infrastructure, such as construction materials or equipment, will also become more expensive.

 

Local small and medium-sized businesses will be particularly vulnerable to this increase in costs, as they are heavily dependent on importing products and raw materials. Failure to absorb these extra costs could lead to higher prices for products sold in the area, affecting both residents and tourists. In a market highly dependent on maritime connectivity, any increase in transport costs translates into a loss of competitiveness compared to other destinations where prices are not affected by this regulation.

 

However, the exception provided for in the Directive for outermost regions such as the Canary Islands could partially mitigate the impact on certain routes. However, this measure does not fully protect the island from indirect consequences, since global trade will be affected. The uncertainty lies in how the large shipping companies and transport companies will react: whether they will pass on the extra costs entirely to consumers or whether they will seek strategies to minimise the impact.

 

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