Absurdly, given that the Canary Islands are supposedly self-sufficient in eggs due to tariffs, the avian flu crisis on the Spanish mainland has transcended the health sector to become a severe economic disruption in southern Gran Canaria. The increased price of eggs—a critical input for the hospitality industry—has forced the main commercial drivers in southern Gran Canaria to join the request of distributors (Mercadona, Carrefour, Alcampo, Aldi, Lidl, and local businesses): the temporary elimination or a maximum reduction of 15% of the Import Tax (AIEM) on imported eggs. How is it possible that such a basic product in the Canary Islands has a 15% surcharge?
The request to temporarily suspend the 15% AIEM tax is interpreted as a legitimate act of regional economic policy aimed at mitigating an exogenous shock. While awaiting fiscal measures from the central government, "action on the AIEM is the only quick and direct tool available to the Canary Islands Government to reduce the price of a basic input," the head of purchasing for a hotel chain in Meloneras told Maspalomas24H.
Ultimately, the demand from the southern hospitality sector seeks a tax shield to protect Canarian businesses from an additional cost that threatens to destabilize tourism pricing structures. The tax, intended to promote domestic production, is now seen as a burden that accelerates the deterioration of liquidity in the province's commercial heartland.
This uncoordinated move by distributors and the hotel and restaurant sector is not just a complaint; it's a measure to ensure commercial stability, aiming to prevent the supply crisis from spiraling into a collapse of profit margins in a sector vital to the island's economy. The price of a dozen eggs has risen by up to 60 cents in recent weeks, now exceeding four euros. This surge is particularly damaging for the Canary Islands, whose local production covers just under 60% of the market.
The analysis of the cost structure reveals a tax burden that is now considered unsustainable: imported eggs, necessary to supply 40% of the market, are subject to a 15% AIEM tax. This levy, added to freight and insurance costs, increases the price of a dozen eggs by about 30-35 cents. Under normal circumstances, this tax protects local production; in the current emergency situation (without local outbreaks, but with mainland production under lockdown), the AIEM becomes a tax on shortages.
The financial health of businesses, and the hospitality sector in southern Gran Canaria (Masapalomas, Meloneras), which represents the largest commercial consumption of eggs on the island, is at risk. The increase of 60 cents per dozen, multiplied by the consumption volume of hotels, resorts, and restaurants, poses an immediate strain on the viability of supply contracts and profit margins, which are already tight.
