SHARE
COPY LINK

BUSINESS

Business: Six reasons why the Canary Islands are so much more than a holiday destination

To many people, the Canary Islands conjure up images of sunshine, holidays and beaches. So it is no surprise the archipelago attracted more than 13 million tourists last year.

Business: Six reasons why the Canary Islands are so much more than a holiday destination
All photos provided by Sociedad Canaria de Fomento Económico

However the Spanish archipelago off the west African coast is proving an attractive destination to more than just tourists.

And here's why:

Hollywood calling


During film of Vacaciones con amigos. Photo by Daniell Bohnhof 

The tropical forests, volcanic landscapes and beautiful beaches mean film makers are spoilt for choice for backdrops.

Some films made on the islands recently include  Jason Bourne, starring Matt Damon, Allied, with Marion Cotillard, Clash of the Titans and The Wrath of the Titans, starring Rosamund Pike, Ralph Fiennes and Liam Neeson.

Because in an industry in which shooting film costs millions, the financial incentives to working in the Canaries are generous.

Tax breaks

Film makers stand to benefit from a corporate tax rate of 4 percent compared with the European Union average of 22.5 percent.

To add to that, there is a cash-back scheme which means film companies can claim back between 30-40 percent of the cost of their investments from the Spanish government.

This is not because the Canary Islands are a tax haven, but because they are classified by the European Union as an Outermost Region so merit these fiscal advantages.

Sun, sea and wind

Companies involved in the renewable energy sector can also qualify for the same low tax rates, that are designed to diversify the islands' economy away from tourism.

For the renewable sector this is a particularly good perk.

The islands enjoy 2,500 hours of sunshine per year, which means almost seven hours per day all year long. Photovoltaic installations operate for more than 1,700 hours per year. 

The archipelago is battered by Trade Winds with average speeds of 6 to 8 m/s, which make wind farm yields between 3,000 and 4,500 equivalent hours.

In particular, the Canary Islands, have proved particularly attractive for pioneering floating wind farms.

As these are volcanic islands, geothermal is another form of energy which is undergoing research on the islands.

Experts hope that the Canary Islands may before too long become self-sufficient in renewable energy.

El Hierro, the smallest of the Canary Islands, is close to becoming the first island in the world to become fully self-sufficient for renewable electrical energy.

To achieve this, the 268-square-kilometre island has installed five wind turbines, two water deposits, four hydraulic turbines and a pumping station in order to make the energy it requires, even when the wind is not blowing.

Gran Canaria, a much bigger and more populated island, is already moving forward to install a similar system.

Proximity to Africa

Another plus are the islands' geographic closeness to Africa which also makes the archipelago a unique stepping stone to operate in the neighbouring continent.

Rolls Royce repairs oil rigs in the islands instead of shipping them back to continental Europe, which is more costly.

Post-Brexit perks

For the tech start-ups and R&D companies, the generous tax environment make it an attractive place to invest.

In the post-Brexit world, British companies may want to keep a toe-hold in Europe and the Canary Islands offer a good quality of life plus a pro-business environmennt.

Plus there's easy connectivity and it's in the same time-zone as UK

There are at least 400 flights from the UK per week, some from minor British airports, so the islands are well connected.

And for those with families looking to relocate from Britiain to keep a foothold in Europe, the Canary Islands offers an established British community with a series of international schools and a welcome face for anyone who does not speak Spanish.

Welcoming authorities

Elena Mañez, the Canary Islands' economy and employment minister, said: “The islands are, without any doubt, one of the most attractive places to invest in Europe today, not only for our best-in-class tax incentives, but also for natural conditions, top safety and unique capacity to attract and retain talent.”

READ ALSO: 

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

BRITONS IN SPAIN

FACT CHECK: Spain’s ‘£97 daily rule’ isn’t new nor a worry for British tourists

The British tabloids are at it again causing alarm over the so-called '£97 daily rule’ which Spain is apparently imposing on UK tourists, who in turn are threatening to ‘boycott’ the country. 

FACT CHECK: Spain's '£97 daily rule' isn't new nor a worry for British tourists

American playwright Eugene O’Neill once said: “There is no present or future – only the past, happening over and over again – now”.

In 2022, The Local Spain wrote a fact-checking article titled ‘Are UK tourists in Spain really being asked to prove €100 a day?, in which we dispelled the claims made in the British press about Spain’s alleged new rules for UK holidaymakers.

Two years on in 2024, the same eye-catching headlines are resurfacing in Blighty: “’Anti-British? Holiday elsewhere!’ Britons fume as tourists in Spain warned they may be subject to additional rules” in GB News, or “’They would be begging us to come back’: Brits vow to ‘boycott Spain’ over new £97 daily rule” in LBC.

The return of this rabble-rousing ‘news’ in the UK has coincided with calls within Spain to change the existing mass tourism model that’s now more than ever having an impact on the country’s housing crisis.

Even though Spaniards behind the protests have not singled out any foreign nationals as potential culprits, the UK tabloids have unsurprisingly capitalised on this and run headlines such as “Costa del Sol turns on British tourists”.

READ MORE: Why does hatred of tourists in Spain appear to be on the rise?

What is the so-called ‘£97 daily rule’?

Yes, there is theoretically a ‘£97 a day rule’, but it is not a new rule, nor one that applies only to UK nationals specifically, and not even one that Spain alone has imposed (all Schengen countries set their financial means threshold).

As non-EU nationals who are not from a Schengen Area country either (the United Kingdom never was in Schengen), British tourists entering Spain could have certain requirements with which to comply if asked by Spanish border officials.

Such requirements include a valid passport, proof of a return ticket, documents proving their purpose of entry into Spain, limits on the amount of time they can spend in Spain (the 90 out of 180 days Schengen rule), proof of accommodation, a letter of invitation if staying with friends or family (another controversial subject in the British press when it emerged) and yes, proof of sufficient financial means for the trip.

Third-country nationals who want to enter Spain in 2024 may need to prove they have at least €113,40 per day (around £97), with a minimum of €972 (around £830) per person regardless of the intended duration of the stay. It is unclear whether this could also possibly apply to minors.

The amount of financial means to prove has increased slightly in 2024 as it is linked to Spain’s minimum wage, which has also risen. 

Financial means can be accredited by presenting cash, traveller’s checks, credit cards accompanied by a bank account statement, an up-to-date bank book or any other means that proves the amount available as credit on a card or bank account.

Have Britons been prevented from entering Spain for not having enough money?

There is no evidence that UK holidaymakers have been prevented from entering Spain after not being able to show they have £97 a day to cover their stay, nor any reports that they have been asked to show the financial means to cover their stay either. 

17.3 million UK tourists visited Spain in 2023; equal to roughly 47,400 a day. 

Even though British tourists have to stand in the non-EU queue at Spanish passport control, they do not require a visa to enter Spain and the sheer number of UK holidaymakers means that they’re usually streamlined through the process, having to only quickly show their passports.

The only occasional hiccups that have arisen post-Brexit have been at the land border between Gibraltar and Spain (issued that are likely to be resolved soon), and these weren’t related to demonstrating financial means. 

Therefore, the British press are regurgitating alarmist headlines that don’t reflect any truth, but rather pander to the ‘they need us more than we need them’ mantra that gets readers clicking. 

To sum up, there is a £97 a day rule, but it is not new, it has not affected any British tourists to date, and it is not specific to Spain alone to potentially require proof of economic means. 

SHOW COMMENTS