Supply and demand in a tourist town!

Tourism towns need particular financial considerations

The Alliance of tourism towns in Spain, the AMT, made up of Adeje, Arona, Benidorm, Calvià, Lloret de Mar, Salou, San Bartolomé de Tirajana and Torremolinos, outlined their priorities as the leading tourism destinations in Spain, during a meeting in Madrid earlier this week. Also present were members of the British embassy and consulates.

The eight member boroughs together represent only 0.92% of the Spanish population, but received 13.52% of visitors to the country, 11,059, 430 last year. They have an average occupation rate of over 82% and employ over 86,000 people in the sector. Spain is currently registering as the second best tourism market in the world.

The strong competition in the sector globally and the permanent evolution of the demand of the new tourist are issues of concern for the members boroughs. All are working to digitalise the sector, to continue to grow as sustainable, safe and accessible places to visit, elements that are important in marking the difference between Spanish and many other destinations and maintain their position as world leaders in the sector. To further the aims of the boroughs the group has said they need a specific financial system with increased funding from public administration to put in place many of the new products which will increase their competitive edge. That in turn will continue to see positive returns for the country.

The mayor of Adeje, José Miguel Rodríguez Fraga, says this isn’t just about “asking for money”, but “allocating the tools needed to direct the finance along the lines to alleviate the kinds of pressure that tourism boroughs are under, boroughs that have to deal with a huge seasonal increase in their populations, people who visit not live in the boroughs, but who still require services. Without specific aid, the potential is that the resident population will suffer a parallel decrease in services.

“We are dealing with issues that mark us out from other Spanish boroughs, and as, for instance, there are laws the apply only to the larger cities in Spain, we think it is only fair that we have specific regulations that apply to those boroughs that have a large regular tourism weighting”, insisted the Adeje mayor.

 

The mayor of Arona, José Julián Mena, explained that while “tourism is a source of income and bring opportunities to the residents of our boroughs, we can’t forget that the industry also brings huge pressure to bear on local infrastructures and services”.

He added, “We want to be able to continue to offer both residents and visitors quality public services, but that isn’t easy with pressure from the local population as well as a daily floating influs of about 225,000, people, which is exactly why we need a financial structure that is particular and adapted to the needs here – roads, sanitation and health services, for example.

Also attending the meeting was Bill Murray, Head of Economics and Public Policy at the British Embassy, Sarah Jane Morris, British Consul for Madrid and Alicante and Lloyd Milen, British Consul for the Balearics, Catalonia and Andorra, who are interested in the evolution of this group given the importance of the British market.

During the meeting there was also discussion of worries regarding the question of Brexit and how this might affect tourism. However all were keen to stress the popularity of Spain as a holiday destination with Britons and an overall sense that Brexit won’t have a huge impact on tourism and commerce in that sector.
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Department of Communications

 

 

 

 

 

 

Tax freeze and rates drop!

 

House rates will drop this year for home owners in Adeje

Yesterday the Adeje council released details of the 2108 budget with the mayor stating that the council’s main priorities for 2018 would be to continue to make individual care and attention and quality of services priorities. However be said the national ‘law of rationalisation’ was creating problems for the council. Also present at the launch of the budget proposals were the councillors for tax, Epifanio Díaz, and the councillor for works and municipal services, Carmen Rosa González.

Adeje has met all budget targets and aims as outlined by the national ministry for finance and tax, and under the law of rationalisation as applied to local public administrations. The council is, on average, paying providers within 15 days of presenting bills (the national average is 30 days), and is working with a zero deficit.

Under these circumstances the council is able to present an expansive and ambitious programme for the year ahead. However, says mayor José Miguel Rodríguez Fraga, “we are restricted from planning to be more ambitious in our borough due to the national law, I am calling it the law of irrationality, it’s tying our hands and not allowing us grow more than 2.3% even though we finished last year with a surplus of €15 million”. He continued, “It is unjust that boroughs that have met all the budgetary conditions laid down are being hindered, and furthermore as a tourist destination we do have to offer increased and improved services and resources”.

In 2018 Adeje has said it will spend €89.5 million with an expected income of €93.6 million, figures similar to the year gone by. Last year’s handling of the public finances saw a continuation of the monetary stability that has meant Adeje is one of the better managed boroughs.

The mayor outlined the four spending areas for the council for the year: consolidate and improve the quality of public services, accounting for 56% of projected costs; attention to social welfare needs and programmes, 13% of the projected cost; training and employment programmes at a projected cost of €5 million; freezing of local taxes and a drop in local rates which will benefit over 60% of the Adeje residential population.

Regarding employment Adeje has one of the lowest rates of unemployment in Spain, with just 7% on the dole. The mayor continues to prioritise training and education as vitally important in tackling unemployment, “helping people, regardless of age or personal characteristics, to improve their job-finding prospects”. This will include language courses, training in IT, etc. Creating more jobs in the tourism sector is also a priority as well as offering those already employed in tourism on-going opportunities to improve their professionalism thus improving the level and quality of service in the sector.

Social projects, attention to health, diversity, education and culture, are also scheduled to receive extra funding. Projects such as that helping children walk safely to school, Adeje’s social harmony programmes, prevention projects in health, services for seniors and improving equality opportunities are an integral part of the plan for 2018.

The council representatives also mentioned the on-going works taking place in the town currently concentrating in improving parking, “one of the major problems that affects our residents”, remarked the mayor. Additionally over €4 million is earmarked for road surfacing throughout the borough, and improving the quality and extent of the water supply will also receive funding during the year.

 

 

 

 

Department of Communications