Gran Canaria and the Vivienda Vacacional Dilemma: Growing Tourism or Housing Crisis?
In recent times, the rental sector on the island of Gran Canaria has been at the center of a heated political debate, threatening to penalize both property owners and tenants.
The focus is on the increase in tourism and the growing number of apartments for short-term rentals licensed by Viviendas Vacacionales.
But is this really a problem?
Tourism growth in Gran Canaria: opportunity or threat?
Gran Canaria, an island that until a few decades ago was inhabited almost exclusively by locals and often ignored by mainstream tourist flows, is now a popular destination for visitors from around the world.
New international flights, including those from the United States, testify to the growing interest in the Canary Islands.
However, this exponential growth in tourism has raised concerns.
Some argue that the growing demand for tourist apartments has led to rising rental prices and a reduction in the availability of housing for residents.
But is tourism really the cause of all ills?
Gran Canaria's economy without tourism: is it sustainable?
Without tourism, what would Gran Canaria live on?
Local products such as cheese, Valleseco strawberries, Lanzarote wine, papas arrugadas and Mojo are indisputable delicacies, but are they enough to sustain the island’s economy?
The truth is that tourism is the economic engine of Gran Canaria.
Real estate, short-rental management, housekeeping, maintenance, catering, shopping, transportation services, and excursions-all revolve around the revenue generated by tourists.
It’s not just about accommodations and hotels: tourism fuels the island’s entire economic ecosystem.
For example, many restaurants, bars, and businesses depend largely on the steady flow of visitors.
Organized excursions, recreational activities such as boat rides, diving, and guided tours of Gran Canaria’s natural beauty are services that exist and thrive because of tourism.
The real problem: shortage of public housing
The real problem is not tourism or Viviendas Vacacionales, but the lack of public housing for residents.
The scarce housing supply pushes prices through the roof, forcing many to pay exorbitant amounts for often inadequate housing.
In many cases, residents find themselves competing with tourist rentals to find decent housing.
However, placing all the blame on short rentals and tourists is too simplistic an approach.
The reality is that there is a lack of effective housing policies by the authorities.
Gran Canaria would need a sustainable development plan that includes building affordable housing for residents.
Regulating the residential rental market could be one solution, addressing unfair practices such as one-year down payment requirements and three-month deposits for small pets.
Creating incentives for landlords who rent long-term to residents could help balance the situation, without demonizing the tourism sector.
Viviendas Vacacionales as a scapegoat?
During the COVID-19 pandemic, rumors were already circulating that the islands would become a luxury for the few, with high prices to select tourists and high-end residents.
With the global economy in crisis, tourism has proven to be one of the island’s most resilient resources, helping to keep it afloat during difficult times.
Yet now there seems to be growing pressure to restrict the Viviendas Vacacionales sector, often painted as public enemy number one.
The reality is that without timely and reasoned intervention, the island’s most powerful tourism business could be compromised, leaving room only for large corporations and investment funds.
If this happens, Gran Canaria risks reverting to a limited economy, without the prosperity brought by tourists.
Mass tourism could turn into elitist tourism, accessible only to those who can afford high prices, excluding a large segment of both the local and foreign population.
Possible solutions: toward balanced regulation
Regulating Viviendas Vacacionales is necessary to clean up the sector from improvised and irregular operators.
However, it is crucial to avoid regulatory excesses and anachronistic views that could stifle the island’s tourism market.
A balanced approach can allow for sustainable coexistence between the needs of residents and those of investors and tourists.
Solutions could include:
Fair taxation:
Ensure that revenue generated from short rentals contributes to community welfare through taxation that can be reinvested in public infrastructure.
Incentives for long-term rental:
Offer tax breaks to landlords who decide to rent their properties long-term to residents, thus helping to create a balance between tourist and residential rentals.
Promotion of sustainable tourism:
Encourage more sustainable forms of tourism that have less impact on the environment and local society, diversifying tourism supply and making it less dependent on short rentals.
Conclusion: finding a balance between tourism and residence
In conclusion, the growth of tourism in Gran Canaria represents both a challenge and an opportunity.
The fault of the Vivienda Vacacional is often emphasized as the main cause of housing problems, but the reality is more complex.
It is possible to find a balance that allows Gran Canaria to continue to thrive as a tourist destination without sacrificing the quality of life of its residents.
An open dialogue between government, property owners, residents and tourism operators is critical to developing policies that are beneficial to all.