Usually during summer, the main beach at Playa de las Americas in Tenerife would be packed with holidaymakers. But today, there is no scramble for sun beds, no scrap for a patch of sand. Aside from a few families, the place is deserted.
“Things are very slow,” admits Anthony Foxall, a British expat who runs a water sports business from a beachside kiosk.
“This time last year, these sun beds would have been full, and we would have had jet-ski customers on the water until evening.
“But like everyone, we’re struggling.”
Above the beach, the boardwalk is lined with pubs, bars and restaurants, many offering special deals. But the empty tables tell the story - here too, business is painfully slow.
“There are fewer British tourists coming, and those that do come are spending less,” says Mohammed Ouatiq, a waiter at a restaurant offering Spanish and international cuisine.
“Before, it was easy. But this month, we have had to drop our prices.”
Chain reaction
With around nine million holidaymakers a year, tourism and related services account for a dizzying 75% of the Canary Islands’ gross domestic product (GDP).
Louise Cook
The mood is really low… People try their best to avoid talking about it.
Louise Cook
Laid-off restaurant worker
When visitor numbers fall - as they did by 14.5% during the first five months of 2009 compared with last year - almost everyone suffers.
“This is a year-round tourism economy,” says Alberto Bernabe of the Tenerife Tourism Corporation. “So if tourists don’t come, it affects our restaurants, shops, hotels, transport - everything. It’s a chain reaction.”
The fall in numbers has been sharpest among British holidaymakers, who make up a third of all arrivals.
Some have been deterred by the ongoing weakness of the sterling against the euro, while others saw holiday plans wrecked by the collapse of tour operators such as XL and LTE.
“We’ve lost four tour operators and airlines in the past year,” says Mr Bernabe. “Air capacity to the island is down by 10%, and unfortunately we can’t reinvent airlines overnight.”
Human cost
Every lost seat on an incoming flight costs the Canarian economy 500 euros (?430) - the amount spent here by the average holidaymaker.
All told, the industry forecasts revenue losses during 2009 of 1.5bn euros (?1.3bn).
Inevitably, there is a human price. Unemployment has soared to 24%, almost double the figure of a year ago. Almost a quarter of a million people are out of work.
The path forward is quality
Alberto Bernabe
Tenerife Tourism Corporation
“We’re talking about a hundred people going for one job - and that can just be in a bar or a restaurant,” says Louise Cook, who has been seeking work ever since she was laid off from a restaurant which was later forced to close.
“The mood is really low,” she adds. “People try their best to avoid talking about it.”
Among politicians, there is a recognition that the islands’ troubles are not self-inflicted, but rather the inevitable consequence of a global recession.
Public investment totalling 120m euros (?100m) over four years will ease the pain - as roads, squares, gardens and beaches are given a facelift.
In the private sector, 20 hotels in Tenerife have decided against struggling on through a loss-making summer, instead opting to close temporarily and carry out long-overdue renovations.
New look
They include Coral Beach in Playa de las Americas, where workmen are installing a new pool, a fitness centre, and upgraded guest apartments in a style marketed as “Nordic concept.”
Construction at Coral Beach
The Coral Beach will have a four-star rating after the renovation
The new complex will boast four stars, one more than before.
“We decided this was the right time to do it,” explains Manuel Rodriguez, the sales manager.
“We’re in a global economic crisis, bookings were down, and we believe we’ll get better business from Scandinavian tourists when the improved facilities open in winter.”
For many hotels this will be the first serious upgrade in decades, according to Ricardo Fernandez of Ashotel, a local industry body.
“Some installations have had 30 years of intensive use, so it’s a good moment to improve them, ” he says. “We’re also adding value - by emphasising local gastronomy, family facilities and excursions.”
With fewer holidaymakers arriving, the strategy is to encourage those that do come to spend more.
Wealthy Russian clients, who have discovered the islands’ growing number of five-star hotels, are seen as a prototype for the future.
“Tenerife has just over five million tourists a year, but we would rather have four million, spending 30-40% more,” says Mr Bernabe of the tourism corporation. “The path forward is quality.”
Fighting talk, from an industry under fire. But however bold the aspirations, every business here knows the immediate priority is survival.
