Holiday lets continue to boom in the Canary Islands, contributing significantly to the local economy and job market. According to a report by the Canary Islands’ Ministry of Tourism and Employment, led by Jéssica De León, holiday rental properties generated approximately 19,000 jobs in 2023. This marks an 8% increase compared to the previous year, when the sector supported around 18,000 jobs.
The report was requested by Juan Manuel García Casañas, a member of the Canary Islands' Parliament from the Partido Popular party (PP), to shed light on the economic impact of holiday rentals. These jobs include both direct and indirect positions associated with managing and maintaining holiday rental properties.
The sector's growth is also reflected in revenue figures. In 2023, holiday lets generated a staggering €64.4 million, nearly doubling the €33.4 million reported in 2019, before the COVID-19 pandemic. The surge in holiday rentals has also added 10,000 more properties compared to pre-pandemic levels.
Although precise job figures are difficult to get, the Canary Islands Institute of Statistics (ISTAC) combines holiday rental employment data with those of rural homes, classifying them under "tourist accommodations and short-term lodging." This category accounted for 19,743 jobs in 2023, up from 18,206 in 2022.
The regional government noted the difficulty in separating holiday rental jobs from those in rural accommodations, as both share similarities in serving tourist and urban areas.
Tenerife leads the Canary Islands with the highest number of holiday rental properties, with 18,140 units as of May 2024, followed by Gran Canaria with 9,536. Arona, in the south of Tenerife, alone has 4,231 holiday rentals, generating over €25 million in revenue for the island.
Amid the sector’s expansion, discussions about regulating holiday rentals have intensified. Earlier this month, the Tenerife Cabildo called for a moratorium on granting new holiday rental (VV) licenses, a move supported by Lanzarote, Fuerteventura, and Gran Canaria.
The Canary Islands Government is currently working on a draft law to regulate holiday rentals. The latest version of the draft was presented this month, following initial discussions in March, and has already received 3,000 amendments. It is expected to be reviewed by the regional Parliament soon.
The new legislation aims to balance the rights of small property owners with regulatory oversight. Small landlords, for instance, will be allowed to continue renting their properties indefinitely, provided they comply with all relevant regulations. The law will also empower local authorities to inspect and verify holiday rental operations, and revoke licences if necessary.
The ongoing debate highlights the tension between supporting tourism growth and addressing concerns over housing availability and urban development across the islands.
