Lanzarote Tourism Tumbles In December

New figures just released by the Spanish airport operators AENA reveal that visitor numbers to Lanzarote fell dramatically in December.  Suggesting that the credit crunch, falling pound and waning consumer confidence are now starting to eat into the overseas travel and property markets.

The small Canary Island of Lanzarote is heavily reliant on British tourism.  Which traditionally has accounted for well over 50% of all visits made to the island by non-Spanish nationals.  But the new AENA figures reveal that whilst UK tourist visits rose by 1.09% across the course of last year they fell back dramatically last month.  Declining by over 25% versus 2007 figures – down from 74,167 visitors to 55,024.

This pattern was repeated across other important markets – as the total number of foreign visitors fell by 21%.  From 146,240 visitors in December 2007 to 116,850 last month.  With big falls recorded in other key markets, such as Germany, the second largest source of tourist visits.  Where numbers declined by 12% in December.  And Ireland, Lanzarote´s third most important market – where 17% fewer holiday makers touched down at Arrecife airport versus December 2007.

Only the Scandinavian markets have provided positive news – as Lanzarote´s renaissance in popularity there continues.  With visitor numbers from Norway up by 11.69% for the year, followed by Sweden (up 9%) and Finland (up 7.26%).

Some companies are reporting buoyant demand for villas and holiday apartments in Lanzarote during the busy booking month of January.  Making it impossible to predict whether these December visitor numbers will be transposed across the course of 2009.

However the latest AENA figures do not make happy reading for local estate agents or the many thousands of overseas owners of property in Lanzarote.  As the level of enquiries and transactions on the island had already started to tail off in the latter half of 2008.  

Local banks continue to impose rigid lending criteria and prices are clearly starting to soften.  Whilst distress sales are also becoming evident – with bank repossessed properties now being marketed by local agents. In Playa Blanca, for example, a three bedroom villa with private swimming pool which was valued at €348,273 in 2006 is currently up for sale at just €210,000.