The booming tourism industry in the Canary Islands is transforming local communities, with soaring rental prices making it increasingly difficult for residents to find affordable housing.
In municipalities such as La Oliva (Fuerteventura) and Arona (Tenerife), nearly one-third of housing stock has been converted into tourist accommodation, driving rents up by more than 66% in just four years.
A report by Ecologistas en Acción reveals the scale of the problem: in La Oliva, 241 out of every 1,000 homes are now classified as holiday rental properties, while in Arona, the average rent per square metre has surged to €17 a figure surpassing tourist destinations like Málaga (€14.50) and Valencia (€14.20).
This dramatic rise is attributed to a 56.8% increase in holiday rental properties (VV) in La Oliva over four years, a trend mirrored across other popular Canary Island destinations such as Adeje and Puerto de la Cruz.
Tourism Versus Community
The report highlights how the proliferation of holiday rentals has not only made housing unaffordable but has also displaced local residents. In La Oliva, many families have been forced to leave central areas, now dominated by tourist properties.
Similarly, Arona has seen its neighbourhoods, particularly coastal and central ones, transform into tourist hubs, leaving traditional businesses struggling and eroding social ties.
As central and beachside areas are filled with visitors, local residents are pushed to the outskirts or entirely out of the municipality. This shift is creating a phenomenon of gentrification, where established communities are replaced by transient populations of tourists.
The Broader Impact
The effects of this tourism-driven transformation are not limited to housing. Coastal ecosystems in La Oliva and Arona have been significantly affected by urban expansion, with over a third of natural spaces near beaches destroyed to make way for tourist infrastructure.
Nationally, these municipalities, along with Ciutadella in Menorca, are among the most severely impacted by "touristification," with the concentration of VV’s more than doubling the national average.
For instance, in Málaga’s Ciudad Jardín area, 30% of housing stock is dedicated to tourism. In La Oliva, this figure rises to 33%. This growing reliance on the tourism sector, described in the report as a “monoculture”, is leaving local economies and housing markets highly vulnerable.
A Crisis in the Making
If current trends persist, housing affordability in the Canary Islands is set to worsen. The lack of affordable housing policies and the absence of effective regulations to limit VV growth mean that prices are likely to continue rising. According to the report, without intervention, more families will be displaced, and the social fabric of these communities will be further eroded.
The Canary Islands now face a critical choice: regulate the tourism industry to protect residents or continue down a path where economic benefits come at the cost of local communities.
The question remains: how much longer can this paradise sustain its allure before becoming a lifeless postcard?
