Canary hotel occupancy falls again as room rates climb

Hotels in the Canary Islands are facing a difficult summer: occupancy rates fell to an average of 77.1 per cent in July. This represents a decline of 2.5 percentage points. This is according to data from Istac, the Canary Islands‘ statistical institute.

Meanwhile, room rates followed the opposite trend: the average price per hotel room in the Canary Islands rose by 4.3 per cent. Across all hotels and islands, an overnight stay cost 131.94 euros.

The fall in the number of overnight stays is clearly attributable to hotels in the Canary Islands, as accommodation providers as a whole recorded a negligible decrease of just 0.3 per cent, with 8.93 million overnight stays. However, holidays are changing:

Holidays in the Canary Islands are becoming more expensive and shorter

In July, too, the sector recorded shorter holidays. With an average stay of 6.8 nights, the trend towards shorter holidays in the Canary Islands is continuing. The resulting more frequent turnover of guests leads to additional costs. This, in turn, is a factor in the rising price per overnight stay.

The Canary Islands have for some time now been recording falling overnight stays alongside rising prices. As early as May, accommodation providers were reporting more bookings for shorter stays.

La Palma bucks the trend seen in Canary Islands hotels

The fact that La Palma bucks this trend is due to the volcanic eruption in 2021. The sharp slump in tourism on the „Isla Bonita“ at that time skews the comparison.

In June, Istac recorded 1.1 million foreign tourists visiting the Canary Islands. This represented a fall of 2.7 per cent. The July figures for this survey are not yet available. Tourism experts expect a similar trend. The Canary Islands‘ peak season is in winter. The trend between November and March is regarded as an important indicator for tourism in the Canary Islands in the coming years.