Exceltur makes a positive balance and highlights the strength of the Canary Islands

Stock image of tourists in Maspalomas, Gran Canaria. / Arcadio Suarez

Exceltur makes a positive balance and highlights the strength of the Canary Islands

CANARY ISLANDS7 The Gran Canarian palms

The Exceltur tourism alliance considers that the traveling "fury" installed throughout Europe since the end of March has exceeded
macroeconomic conditions, so that tourism GDP has already reached levels higher than those of 2019, before the pandemic, in the second quarter. Nevertheless,
Exceltur alert of the clouds for that recovery due to the effects of the war in Ukraine and the one derived from galloping inflation.

The recovery of the dammed-up demand since the pandemic has favored the Canary Islands first, at the beginning of the year, and from Easter to the peninsular destinations and the Balearic Islands, while tourism has recovered more strongly than initially expected. business and conferences (Mice for its acronym in English).

«The destinations most dependent on foreign demand holiday, the Balearic Islands (+6.4%) and the Canary Islands (+5.1%)", underlines Exceltur, "they already close the second quarter of 2022 with sales higher than 2019, leading the recovery".

However, this recovery in demand, with the consequent increase in business turnover, has not translated into results
"chords" due to the increase in costs (25% in energy costs, 16% in supplies and 7.5% in labor costs), according to the Exceltur Perspectives report.

The final prices, he points out, have risen an average of 7% and the businessmen point out that they have only been able to transfer
23.4% of the extra costs. In any case, Exceltur clarifies that this price increase is lower than that of the economy as a whole, which figures at 10.3% over 2019.

“It bothers us that we may be being instrumentalized with
interested political readings, who say that the tourism sector is going to be covered ». They are "not rigorous" readings, said Exceltur's executive vice president at the presentation of the report,
Jose Luis Zoreda.

The unusual takeoff this summer, adds Exceltur, "will have to live with the turbulence that
could be charged in the fall, despite the positive forecasts to which the current reserves point. In
holiday destinations of the Mediterranean, the Balearic Islands and the Canary Islands, this powerful short-term recovery is catching some companies on the wrong foot since, due to its great
dependence on the distribution channel (TT OO), its prices are difficult to renegotiate with that channel in this favorable demand situation - having been closed months ago - while its cost evolution has been galloping due to inflation that they cannot transfer to the final price to that channel, restricting thus its margins and available treasury».

The recent Exceltur business confidence survey reveals that "tourism entrepreneurs
anticipate on average a continuity in the intensity of the recovery of their activities, which will bring them closer to sales levels similar to those prior to the pandemic in the third summer quarter (-1.4% vs. summer 2019) ».

In the scenario there are additional problems with operations and personnel, given the
difficulty“widespread” in Spain and Europe hiring employees trained in base positions and at airports, ground service ('handling') and hospitality, among others, as well as the low number of staff in key services for connectivity, such as police control in The airports.

In terms of employment, the
tourism sector reached pre-pandemic levels in June for the first time and the timeframe of new contracts signed after the labor reform was reduced by 46 points, above the economy as a whole, says Exceltur, which highlights the "business commitment to the improvement of employment'.

Foreign demand has rebounded strongly in May and June thanks, above all, to the strong
recovery of european tourismand in particular from the countries of Central Europe (Holland, Austria and Luxembourg) together with the countries of the East, despite the war in Ukraine.

Among the large issuers of tourists to Spain, the good performance of France stands out,
"with a greater lag" in the United Kingdom, Germany and Italy, while the United States pulls hard.

See in pdf of the business tourism assessment of the second quarter of 2022

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