Ryanair Switch Focus To Lanzarote & Canaries

Brighter news at last for the beleaguered Lanzarote property and tourism markets. As leading low cost flight operators such as Ryanair, Aer Lingus and easyJet have all recently unveiled a dramatic up weighting in services to the holiday island.  Which so far this year has experienced an 18% drop in foreign tourist arrivals.

Lanzarote´s property and holiday markets are closely interlinked.  As many investors from the UK and Eire have bought apartments and villas in Lanzarote with the sole intention of renting them out holiday makers.

Until recently, this was a reasonably reliable form of property investment.  As Lanzarote enjoys year round sunshine – generating a 12 month rental calendar. Whilst the island has also long enjoyed a stable and sizeable tourist market.  With over 1.5 million foreign tourists visiting Lanzarote last year alone.  The majority of them from the UK.

Now some respite appears to be at hand.  As leading low cost flight operators Ryanair have switched their focus to the Canary Islands this winter.  In reaction to high airport tax charges in the UK and to take advantage of the abolition of landing fees at all Spanish airports until the end of March next year.

In total Ryanair will be operating 15 new services to Lanzarote.  Along with 16 to near neighbours Gran Canaria and 8 to Tenerife.  Commencing from October.  With new flights to Lanzarote available from Bristol, Bournemouth, Birmingham, East Midlands, Liverpool and Prestwick airports.

The company has stated that this programme could help to bring some 2 million tourists to the Canaries this winter.  But have also indicated that these services will only continue beyond March 31st if the Spanish airport tax waiver is also continued.

Ryanair are not the only low cost flight operator to turn their attention to Lanzarote and the Canaries in recent weeks.  As easyJet recently announced the addition of new services from Liverpool John Lennon starting from November.

Whilst close rivals Aer Lingus are also getting in on the act with the creation of new services to the island from their base at Gatwick in South East England.  With flights costing £49.99 available from November.

Local estate agents have certainly welcomed the news.  But fear that local banks need to loosen their lending criteria in order to take advantage of these new services and to re-stimulate overseas investment.  As in line with banks worldwide they are currently restricting the flow of mortgage credit.