Rising Costs Threaten Affordable Tenerife And Lanzarote Holidays

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Post on May 14, 2025

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Rising Costs Threaten Affordable Tenerife and Lanzarote Holidays

The Canary Islands, once synonymous with budget-friendly getaways, are facing a surge in prices, potentially pricing out many holidaymakers. This year, the idyllic beaches and volcanic landscapes of Tenerife and Lanzarote, popular choices for British and other European tourists seeking sun, sea, and affordability, are becoming increasingly expensive. Rising inflation, increased energy costs, and a post-pandemic surge in demand are all contributing factors to this worrying trend.

A Paradise Becoming Pricier

For years, Tenerife and Lanzarote have been a haven for budget-conscious travellers. All-inclusive deals, affordable flights, and reasonably priced accommodation made these islands accessible to a wide range of budgets. However, this image is now being challenged. Recent reports indicate significant price increases across the board, impacting everything from flights and hotels to food and drink.

What's Driving the Price Hike?

Several factors are contributing to the rising cost of a Canary Islands holiday:

• Inflation: Global inflation is impacting economies worldwide, and the Canary Islands are no exception. Increased costs for goods and services are inevitably passed on to consumers, leading to higher prices for tourists.
• Energy Costs: The soaring cost of energy is a significant factor. Hotels and businesses face increased operational costs, which are often reflected in higher prices for accommodation and services.
• Increased Demand: Post-pandemic, travel demand has surged. This increased demand, coupled with limited resources in some areas, has pushed prices upwards.
• Brexit Impact: For UK tourists, the impact of Brexit has added to the cost of travel, with additional fees and complications impacting overall holiday expenditure.
• Shortage of Staff: The hospitality sector in the Canary Islands, like many others globally, is experiencing staff shortages. This can lead to increased costs as businesses compete for employees.

The Impact on Tourists

The rising costs are already having a noticeable impact on tourism. Some holidaymakers are choosing alternative destinations, opting for potentially cheaper locations within Europe or further afield. Others are having to compromise on their holiday plans, perhaps choosing shorter trips or less luxurious accommodation to stay within budget.

What Can Travellers Do?

Despite the rising prices, a Tenerife or Lanzarote holiday isn't necessarily off the table. Savvy travellers can still find affordable options by:

• Booking in advance: Early booking often secures better deals on flights and accommodation.
• Travelling during the shoulder season: Avoiding peak season (July and August) can lead to significant savings.
• Considering self-catering accommodation: Self-catering apartments or villas can be more economical than all-inclusive hotels, particularly for families.
• Exploring local restaurants and markets: Eating at local restaurants and shopping at local markets can significantly reduce food costs.
• Taking advantage of free activities: The Canary Islands offer many free activities, such as hiking, exploring beaches, and visiting free museums.

The Future of Canary Island Tourism

The rising costs pose a challenge to the long-term sustainability of affordable tourism in Tenerife and Lanzarote. The islands need to strike a balance between attracting tourists and managing the increasing costs of living and doing business. This may involve exploring sustainable tourism practices, investing in infrastructure, and working to address the issue of staff shortages. Only time will tell if the Canary Islands can maintain their reputation as a budget-friendly holiday destination. The future of affordable holidays in this popular sun-drenched paradise remains uncertain.