Canary Islands Tourism Employment and Its Economic Impact Across Spain

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Hotel receptionists, cleaners, cooks, passenger carriers, or travel agents are among the most visible trades in the Canary Islands. The tourism sector fuels the island economy, and it is common to see a wide range of service workers serving visitors who come to the archipelago for a holiday. In fact, about three out of ten Canary Island workers are employed in roles that serve travelers and support the tourism industry.

In the last quarter, 271,204 people worked in tourism on the islands, accounting for 27.1% of the total active population during the same period. Only three other regions registered more tourism jobs than the Canary Islands between April and June: Catalonia, Madrid, and the Valencian Community.

Additionally, the Canary Islands were one of five communities where 74.5% of all tourism employment was concentrated, alongside Catalonia, Madrid, the Valencian Community, and the Balearic Islands.

Nationally, tourism employment in the second quarter of 2023 reached 2,864,776 workers, up 5.4% from the same period in 2022 and 6.3% from 2019, according to data from Turespaña.

Héctor Gómez, Acting Minister of Industry, Trade and Tourism, noted at a Tenerife press conference that these figures reflect the impact of government policies, improvement plans, and ongoing dialogue with social partners and other administrations.

The minister stated that Spain is correcting historical asymmetries in tourism employment and that the sector is now capable of creating wealth across regions and strengthening the economy as a whole.

Employment growth was distributed across most autonomous communities, with Valencia, Castilla y León, Aragón, and Cantabria showing smaller increases. The regions with the strongest growth included La Rioja, which rose by 40.1%, Galicia by 18.3%, and the Balearic Islands by 18.1% compared with the previous year.

Gómez described the positive data as evidence that the tourism sector remains a key economic engine for the country. In the last quarter, tourism added 146,678 new jobs compared with the same period the year before, representing about one in four jobs (589,000) created in Spain at that time. In other words, tourism-related activities accounted for roughly 24.9% of new employment.

For this reason, tourism employment in the country surpassed three million, reaching 3,130,026, which was an increase of 6% versus the previous year.

The unemployment rate held at 8.5%, slightly higher than 2022 due to a rise in the number of active workers, yet significantly lower than 2019 and the national economy. The economy was at 11.6% or so, in contrast to pre-crisis levels.

Regarding job creation, Gómez emphasized that work linked to tourist activities is increasing with a focus on quality, stability, and excellence.

Amid inflation and the ongoing effects of the Russian conflict in Ukraine, Gómez highlighted the resilience and solid performance of tourism workers. He stated that Spain remains a compelling destination for international travelers and a strong engine for wealth and stability for its citizens involved in the sector.

6% more travel agents

Wage earners employed by others in the tourism sector rose 8.1% to 2,381,684. Gains occurred across all tourism activities: passenger transport up 17.3%, accommodation up 8.7%, and other tourism activities up 3.5%. Within the category of other tourism activities, there was a 6.2% increase in employees in travel agencies.

There was also an 18.1% rise in indefinite contracts within tourism, marking the eighth straight increase. Temporary contract workers fell by 19.9%, and self-employed workers dropped 6% year over year. The total number of self-employed workers in tourism stood at 482,388.

Employers expect 90% occupancy and recovery of 2019 levels

Jorge Marichal, President of the Spanish Confederation of Hotels and Tourist Accommodation, described the recent employment data as very positive and noted strong interest from foreign tourists for the year ahead.

On some islands, hotels are already approaching 90% occupancy during peak periods. Marichal expects these figures to improve through August, potentially surpassing pre-pandemic turnover levels in some segments.

Nationally, domestic tourism remains robust, supporting destinations such as Cantabria, where hotel reservations reach about 75% on weekends and holidays and 65% on weekdays. The Spanish coast from Andalusia to Girona reports occupancy above 80%, while the Balearic Islands exceed 85% occupancy.

Marichal also warned that rising prices could temper some of the sector’s gains, but he remains optimistic about profitability and occupancy, noting that inflation will influence the final outcomes.

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