British tourism has long been a vital part of the Canary Islands’ economy, but in the years following the UK’s exit from the European Union, the significance of British visitors has reached new heights.

 


British tourists now account for a massive 41% of the total revenue generated by the islands’ tourism sector, highlighting their growing dominance in this key industry. This trend is particularly evident in popular destinations like Puerto Rico de Gran Canaria, Maspalomas, Playa del Inglés, and even the capital city, Las Palmas de Gran Canaria.

The Canary Islands have seen a record-breaking year in 2024, despite challenges like labour shortages and economic uncertainties, British visitors continue to play an outsized role in driving the tourism industry. Their spending has soared since Brexit, and with no sign of slowing down, the British market has become indispensable for the Canary Islands, particularly Gran Canaria, where they have become the most frequent and lucrative visitors.

The Post-Brexit Surge in British Tourism

In the second quarter of 2024, tourists from the UK— England, Scotland, Wales, and Northern Ireland—made up 41% of the total expenditure from all nationalities vacationing in the Canary Islands. That is to say nearly half of all money spent by tourists on the islands, a dramatic increase from just a few years ago.

In comparison, before the UK fully left the EU, British tourists accounted for 34.9% of tourist expenditure in 2019. The shift is even more significant considering that 2019 was not only the last year before Brexit was finalised, but also before the COVID-19 pandemic and the global inflation crisis. British tourists have increased their share of spending by six percentage points, cementing their place as the most significant contributors to the Canary Islands’ tourism economy.

The Brexit era saw many predictions, including of a decline in British tourism due to economic uncertainty, the weakening of the currency, and travel complications. However, despite a pound that has consistently under performed against the Euro, these predictions have not come to pass. In fact, British tourists have doubled down on their love for the Canary Islands, especially Gran Canaria, where they continue to flock in record numbers.

Gran Canaria: A British Tourist Haven

Gran Canaria is among the most popular destinations within the Canary Islands for British visitors. Areas like Puerto Rico de Gran Canaria, Playa del Inglés, and Maspalomas, located in the southern part of the island, are heavily favored by British tourists. These areas offer a wide range of accommodations, restaurants, and entertainment options tailored to the tastes and preferences of UK visitors, making them feel at home while enjoying the year-round warm weather and stunning beaches.

Playa del Inglés, for example, is renowned for its extensive beachfront and lively atmosphere. There are a large number of British-owned bars, restaurants, and businesses catering to the English-speaking tourist market, making it a hotspot for UK holidaymakers. Maspalomas, just to the west of Playa del Inglés, is famous for its vast sand dunes and upscale resorts, attracting British visitors seeking a mix of adventure and luxury.

Further west, Puerto Rico de Gran Canaria is another major draw for British tourists. This resort town, originally developed in the 1960s to accommodate tourists from northern Europe, has since become a beloved destination for British families, couples, and retirees. Its calm beaches, family-friendly amenities, and lively marina make it a perfect choice for those seeking both relaxation and entertainment.

In 2023, British tourists accounted for 40% of the visitors in Puerto Rico de Gran Canaria, according to the Canary Islands Statistics Institute. This figure underscores the importance of UK travelers in sustaining the local economy, particularly in the tourism and hospitality sectors. The influx of British visitors keeps hotels, restaurants, and attractions bustling throughout the year, especially during the winter months when other European destinations face colder climates.

Las Palmas de Gran Canaria: A Growing Appeal for British Tourists

While the southern resorts have traditionally been the main draw for British tourists since the 1960s, Las Palmas de Gran Canaria, the island’s capital, is also seeing an increasing return in UK visitors. Prior to 1962 almost all tourism was focused on the capital, but as developers and tour operators of the jet age discovered the warmer south of the island, so package tourism fuelled the rapid growth of the sunny southern beach resorts.  Known for its vibrant culture, historic architecture, and excellent shopping and dining options, Las Palmas has become an increasingly popular choice for British tourists looking for a more urban experience while still enjoying the benefits of island life.

Las Palmas is home to Las Canteras Beach, a long stretch of golden sand that offers both tranquility and proximity to the city’s bustling streets. The beach is frequently listed among the best urban beaches in the world, and its sheltered waters make it a favorite for swimming and water sports year-round. British tourists, particularly those seeking more cultural and authentic experiences, have begun to explore once more this cosmopolitan side of Gran Canaria.

According to the Gran Canaria Tourist Board, the number of British visitors to Las Palmas increased by 12% between 2022 and 2023, a trend that is expected to continue in 2024. This shift indicates that more British tourists are seeking variety beyond the more traditional resort package experience, blending beach time with city life, shopping, and cultural exploration.

The Economic Impact

The growing importance of British tourists is not only visible in visitor numbers but also in the economic impact they have on the island. In the second quarter of 2024, British visitors spent a staggering é1.71 billion during their holidays in the Canary Islands. This represents a 52.6% increase compared to the same period in 2019, underscoring how crucial British tourists have become to the local economy.

This level of spending is particularly beneficial for areas like Playa del Inglés and Puerto Rico de Gran Canaria, where the tourism industry forms the backbone of the local economy. Hotels, restaurants, bars, and tour operators rely heavily on British visitors to keep their businesses thriving, and the increase in spending helps to sustain and create jobs in these regions.

However, the growing reliance on British tourists also comes with risks. There is a certain volatility to the British economy, particularly in the post-Brexit era, which could affect the ability of British tourists to continue spending at such high levels. Economic challenges in the UK, such as inflation and the cost of living crisis, may impact travel plans in the future, but for now, the Canary Islands are reaping the rewards of their enduring popularity with British visitors.

Challenges Ahead: Labour Shortages and New Regulations

Despite the positive outlook for 2024, the Canary Islands tourism sector is not without its challenges. Labour shortages have been a significant issue, particularly in hospitality, with many businesses struggling to find enough staff to adequately meet the demands of the growing number of visitors. This shortage has led to concerns about the ability of the sector to maintain high standards of service, which are crucial for keeping British tourists returning year after year.

Additionally, new regulations, due to begin from October, governing the registration of tourists are causing concerns within the hotel industry. The Spanish Confederation of Hotels and Tourist Accommodations (Cehat) has criticised the new laws, which will now require car hire, hotels and other accommodation providers to collect detailed personal information from guests, including payment methods. This is seen as an unnecessary burden that could increase costs for businesses already grappling with inflation and labour shortages.

Looking Forward

Despite these challenges, the outlook for British tourism in Gran Canaria remains positive. With 2024 shaping up to be a record year, the reliance on British tourists is likely to continue growing. As long as British visitors keep coming in large numbers to destinations like Playa del Inglés, Maspalomas, Puerto Rico de Gran Canaria, and Las Palmas, the Canary Islands’ tourism industry will remain resilient and vibrant, reinforcing its reputation as one of the top holiday destinations for UK travelers.

Brexit Weakened The British Pound

Since the Brexit referendum in June 2016, the British pound has notably weakened against the euro. The immediate impact of the referendum result was a sharp decline in the pound’s value, dropping by over 6% against the euro within a day. Over the years, this downward trend has continued, with the pound consistently underperforming compared to pre-Brexit levels.

By 2023, the pound was still struggling to recover fully. It has fluctuated around €1.17 in recent years, compared to €1.30 or higher before the referendum. The pound remains approximately 12% weaker against the euro than it was in 2016. Significant drops occurred during the numerous moments of political uncertainty, such as the resignation of key figures in the UK government or discussions of a “no-deal” Brexit, further weakening investor confidence.

In 2022, inflation pressures, exacerbated by the global energy crisis and post-pandemic recovery, pushed the pound to one of its lowest levels in history, reaching €1.06, close to the €1.02 low seen during the 2008 financial crisis. Despite some recent recovery, it remains significantly weaker than pre-Brexit levels​ (Full Fact)(IG)(Economics Observatory).

This weakened currency has made European goods more expensive for UK consumers. British visitors to places like Gran Canaria are facing higher costs due to the weaker pound, and a noticeable decrease in spending power. Despite this, British tourism in the Canary Islands has remained strong, likely due to the appeal of some of the more affordable destinations when compared to other holiday spots, as well as the guaranteed favorable weather and their familiarity with the region​.  The thriving expat community on Gran Canaria has had a large role to play in helping to retain the island’s image as a home away from home.

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