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NUMBERS GAME Local Tourist Spending Falls Despite Market Growth

Friday February 26, 2016

NUMBERS GAME Local Tourist Spending Falls Despite Market Growth

The amount of revenue generated by Lanzarote’s tourist industry topped €2,664 million Euros last year, an increase of 5.7% on 2014, representing the best performance since the onset of the crisis, as the island welcomed record visitor numbers in 2015.

Yet despite the fact that Lanzarote welcomed more than 2.5 million arrivals the amount of money actually spent on the island itself fell, with the average visitor spending just over €34 per day, a figure that is well down on pre crisis levels of €37.33 and some way below the average for the Canary Islands as a whole.

Indeed the vast majority of Lanzarote’s tourism revenue – 74% – doesn’t reach the island directly at all and is instead spent domestically in key markets such as the UK and Germany on flights and accommodation. With just €694.7 million going into the coffers of local businesses such as restaurants, supermarkets, car-hire companies and excursion operators.

This downturn in on-island spending can be traced to the expansion of the All Inclusive sector on Lanzarote, which became the business model of choice for most hotel chains and tour operators after the downturn in 2008 and which some local observers claim now accounts for some 60% of the entire market, so choking off spending at a more local level.

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