Villas in Lanzarote

Better news at last for the many thousands of overseas owners of villas and apartments in Lanzarote.  As for the first time this year the rate of decline in visitor numbers appears to be slowing.  According to the latest figures just released by AENA.  Whilst the German market – Lanzarote´s second largest – actually recorded some signs of positive growth last month.  The first upward movement during the course of 2009.

AENA´s recent announcement of arrival figures for October 2009 suggests that there may at last be some end in sight to the economic misery which has so beleaguered the fourth largest Canary Island this year.  A situation created by a heavy reliance on tourism and an over dependence on the British market.  Which has of course been deeply affected by not only the credit crunch but also the weakness of sterling against the euro.  Factors which have combined to create a 20% reduction in British tourism to the island during the first ten months of this year.

Now however the overall rate of decline appears to be slowing.  As AENA´s latest figures reveal that last month the number of tourist arrivals fell by “just” 8.17% versus October 2008 figures.  As the island welcomed a total of 124,673 foreign tourists last month, down from 135,762 for the same month last year.  A rate of decline almost half that of previous months figures which had been averaging out at about 16%.

Even better the AENA figures reveal that the number of tourists arriving on flights to Lanzarote from Germany actually increased last month. Rising from 19,912 passengers in October 2008 to 20,418.

AENA provided further good news too this week.  As the Spanish airport authority has announced that they will continue to waive airports taxes and charges beyond the end of March 2010.  When they were at first expected to be phased out.  A move which is expected to aid the island´s tourist sector and owners of accommodation in Lanzarote.

Reduced airport taxes were introduced by AENA and the Spanish government as a means of assisting the country´s flagging tourist sector.  And were immediately seized upon by the low cost flight operators Ryanair.  Who consequently switched their focus to the Canaries this winter as a result.

At the time Ryanair stated that they would only maintain their services beyond the end of March 2010 if the tax breaks stayed in place.  And now that hopefully looks set to be the case.  As the waiver is now in effect for the entire duration of 2010.

Which are the most popular holiday destinations in Spain?  Whilst the Costas are much visited during the winter months the year round appeal of the Canary Islands ensures that they sit just behind Catalonia in terms of tourist visitor numbers.  Welcoming over 9 million arrivals last year alone.

These seven islands are all unique and different though – boasting contrasting scenery, from the forests of La Palma in the west of the archipelago through to the dry and arid scenery of Lanzarote in the east.

Indeed Lanzarote´s surreal scenery is unlike most other islands in the world.  Created by enormous volcanic activity during the 1730s – which has left much of the interior resembling another planet altogether.

Ironically, this region is now Lanzarote´s most popular tourist attraction.  Although at the time these eruptions obviously caused widespread devastation.  Wiping out farms and villages and completely disrupting the lives of most Lanzaroteños. 

Today though all of these volcanoes are now thankfully dormant.  And the main resorts of Playa Blanca, Puerto del Carmen and Costa Teguise are all located some way away on the south eastern coastline.  Which is where the bulk of visitors are accommodated – in hotels, apartment complexes and holiday villas.

Around 20% of all tourists book an all inclusive holiday.  Whilst the bulk of the remainder opt instead for self catering accommodation.  Thanks partly to the growth of the internet which now enables travellers to book their own Lanzarote holiday villas and flights direct online.

Playa Blanca is the most popular winter vacation spot on the island – thanks to its southerly location and great microclimate.  The resort here has expanded rapidly over the last decade.  Home to excellent beaches such as Playa Dorada and Papagayo – as well a fine selection of high quality restaurants.  Such as Almacen del Sal – located right on the main seafront promenade.  Providing all the right ingredients for a relaxed and enjoyable holiday on the island.

Puerto del Carmen is the other main winter sun destination.  With the accent here more on good value Lanzarote holiday apartments than villas.  With prices starting from around £160 per week. 

Island authorities have recently sunk over €16 million into improving facilities in Puerto del Carmen – making it an ideal time to visit.  As the resort now boasts a new pedestriansed sea front and luxury marina.  Whilst a new golf course has also recently opened just on the outskirts of the town.
 

The peak summer season has done little to brighten up the gloomy picture of declining tourists numbers on Lanzarote.  As the latest figures released by the airport operators AENA and the Cabildo reveal that arrivals remained some 16% plus below 2008 levels in August - despite the advent of the high summer holiday period.

AENA´s latest statistics show that 16.68% fewer foreign tourists spent their summer holidays in Lanzarote during August this year.  As the economic climate continues to impact heavily on the island’s tourist industry.

The British market – Lanzarote´s largest and most important –remains the worst affected.  Thanks to the additional downward pressure created by the ongoing weakness of sterling against the euro.  Last month this resulted in a fall of 18.17% in the number of visitors arriving on flights to Lanzarote from the UK. As total arrivals fell from 67,920 visitors in August 2008 to 55,063 last month.

All other key markets remain affected – with German tourist numbers falling by 9% last month and visitors from Eire declining by 3.59%.  Although both of these rates of decline are well below the overall average and some way behind the grim UK statistics.

So far, during the first eight months of 2009 Lanzarote has welcomed nearly 200,000 fewer foreign tourists than during the same period last year.  A drop of just over 18% which is having a deleterious effect on most sectors of the island economy – which is of course heavily dependent on tourism.

Hotel occupancy figures continue to fall – down by over 9% versus 2008 last month.  Whilst many owners of villas and apartments in Lanzarote are having to come to terms with reduced bookings and rental returns.

The picture is little different elsewhere in Spain and the Canaries – but Lanzarote´s heavy dependence on the UK market remains a cause for concern.  As British tourism accounted for over 50% of all foreign visitors to the island last year and the domestic economy looks set for further turbulence over the coming year.

A ray of light is provided by the fact that a number of the leading low cost flight operators in the UK are now switching their attention to the island.  As Jet2 announced a further expansion in the East Midlands recently and Ryanair begin their new services to Lanzarote in late October.  However whether his will actually result in additional tourist visits remains to be seen.

After suffering the worst six months on record, Lanzarote´s under pressure property and travel sectors received some welcome news this week.  In the form of Ryanair´s announcement that the airline will be shifting their operational focus to the Canary Islands this winter.

The leading low cost flight operators had come in for criticism recently, when they revealed that they planned t cut back operations at their base in Stanstead by 30%.  In response to what the company described as crippling airport taxes and charges being levied by the UK and Irish governments.

Now it looks like the three Canary Islands of Lanzarote, Gran Canaria and Tenerife will benefit.  As Ryanair plan to operate 39 new routes to these islands this winter.  Encouraged by the suspension of airport taxes in the region – an initiative recently implemented by AENA, the Spanish seaport authority, to help revive the flagging tourist trade.

On Lanzarote visitor numbers have been falling alarmingly during the first half of this year.  With total foreign arrivals own by 18% and the number of visitors from the UK, Lanzarote´s key market, down by over 20%.  As the combined impact of a weakened pound and the credit crunch take their toll.

This has inevitably affected virtually all sectors of an island economy that is so heavily dependent on tourism.  With hotels reporting their lowest ever occupancy levels in over forty years whilst owners of Lanzarote villas and apartments have watched their bookings and rental returns plummet.

Now however Ryanair will be operating 15 new flights to Lanzarote, starting in October.  From Bristol, Birmingham, Bournemouth, Luton, East Midlands, Liverpool and Prestwick airports.  And have stated that they expect this to create up to 2,000 new jobs whilst bringing up to 2 million tourists to the islands this winter.

The revival of the travel sector is of paramount importance for the Lanzarote property market.  Which is currently becalmed.  As overseas investment in holiday property has been the driving force of growth on the island over the last decade. Whereas previously Lanzarote investors had become accustomed to a reliable tourist industry and year round rental returns. 

On a cautionary note Ryanair have stated that they will only continue to operate flights to the Islands after March 31st next year if AENA agree to extend their current suspension of airport charges beyond this date too.
 

Thousands of owners of apartments and holiday villas in Lanzarote will be bemoaning the latest tourist figures released recently by the Spanish airport operators AENA.  As the island struggles to cope with the fallout from an 18% downturn in foreign tourism during the first half of this year.

The latest AENA figures reveal that over 140,000 fewer foreign tourists have touched down at Arrecife airport to spend their holidays in Lanzarote during the first six months of 2009.  Creating a massive hole in the finances of island based businesses that must run into millions.

The all important British market is worst hit.  Thanks to the added impact of a weak pound versus the euro.  Which has contributed to a calamitous June – as tourist arrivals from the UK fell by nearly 27%.  Ahead of the general curve for all foreign tourism of 24.45%. 

For the year to date UK arrivals have now fallen by 20% - which equates to a shortfall of over 85,000 British tourists during the first half of this year.  Whilst other key markets such as Eire and Germany are also suffering.  With visitor numbers down by 16.65% and 13.24% respectively.

For the thousands of owners of holiday rental accommodation on the island this obviously translates into fewer bookings and diminished revenue.  Whilst all other sectors of the islands economy are also affected.  As the income earned from the spending of these missing tourists – thought to approximate €36 per tourist per day - simply vanishes.

Lanzarote hotels suffered their worst ever May.  As occupancy levels dropped to just 49.1%.  Some 20% short of their normal figure.  Admissions are down at all of the main island tourist attractions.  Bars, shops and restaurants are all struggling.

What can island tourist authorities do?  In truth they´re caught up in a much wider economic conundrum over which they have little control.  So any proposed moves, such as an attempt to reduce airport taxes or even subsidise flights to the island would be welcome.  Yet despite the downturn there are few cheap flights available to the island during the high summer period.  As many services have simply been removed.

On the upside, the island is still on target to welcome over one million foreign tourists this year.  But whether that will be sufficient to sustain all who rely on the industry remains to be seen. 

Puerto del Carmen is the oldest and most popular tourist destination on Lanzarote.  It was here that the package holiday industry first took off on the island in the 1970´s.  Blossoming in and around the Old Town Harbour area.  Before expanding along what is now the Avenida de las Playas to form the bustling resort that is so well known to island visitors today.

Recently Puerto del Carmen has enjoyed a facelift.  As island authorities attempt to maintain its competitiveness by updating and improving facilities.  So anyone visiting the island this summer will be able to see that the main Avenida has now been part pedestrianised and planted with trees.  Making it a much more welcoming and attractive environment for tourists.  Whilst the Old Town Harbour area is currently being transformed into a marina, with moorings for luxury yachts.

Along with Playa Blanca in the south of the island Puerto del Carmen is home to one of the largest selections of villas in Lanzarote.  With many located in and around the upmarket residential area of Los Mojones.  Which is a short walk from the bars and restaurants of the Old Town.  With a further selection located in and around the heart of the resort along the Avenida de las Playas.

Prices for villa holidays here start from around the €500 per week mark, depending of course on the time of year. 

Puerto del Carmen is an ideal location for anyone searching for accommodation in Lanzarote and planning a holiday on the island.  The resort boasts some excellent white sand beaches.  Such as the main beach Playa Grande.  And the smaller more intimate beaches at Playa Chica and in front of the Los Fariones hotel.

The resort boasts a fine selection of restaurants, serving every type of cuisine imaginable from Thai and Chinese through to traditional Canarian and Spanish.  And has a host of bars, clubs and live music venues for those seeking a little more action from their night out.  There’s even a Casino for those who fancy trying their luck at the gaming tables.

The Old Town Harbour area is home to a number of boat excursions whilst a new golf course has recently opened just on the outskirts of the resort on route to Tias.  Families are also well catered for – with attractions such as the zoo and theme park at Rancho Texas located right on their doorstep.

Visitor numbers fell by over 26% on the holiday island of Lanzarote last month.  As the credit crunch and the depreciation of sterling against the euro continues to bite into the island’s holiday and property markets.

Figures just released by the Spanish airport authority AENA reveal that the number of tourists enjoying a holiday in Lanzarote fell by 26.15% last month. As arrivals at Arrecife airport fell from 121,113 in May 2008 to 89,446 visitors.

Lanzarote has now welcomed 118,287 fewer tourists during the first five months of 2009 versus the same period last year.  With the British market – Lanzarote´s largest – recording some of the biggest falls.  As arrivals from the UK have now dropped by 18.76% across this same period. 

The picture is equally gloomy in other key markets.  As visitor numbers from Germany – Lanzarote´s second largest source of tourists – have fallen by 12.73%.  Whilst the number of holiday makers arriving from Eire, the islands third biggest market, has declined by 14.51%.

This sharp fall in arrivals is taking an inevitable toll on other sectors of the islands economy.  As ASOLAN, the local hoteliers association has reported a record low in occupancy levels last month.  With just 49.1% of all hotel beds filled in May.  Whilst many owners of villas and apartments in Lanzarote are also faced with reduced bookings as many British tourists eschew a holiday in Spain in favour of a domestic break.

Lanzarote is arguably best known as beach holiday destination.  But rural tourism has also grown apace in recent years.  As more and more visitors are keen to connect with the authentic Lanzarote that lies outside of the islands three man made tourist resorts of Costa Teguise, Playa Blanca and Puerto del Carmen.  A type of tourism that is actively encouraged by the Canary Islands Tourist Board, who are keen for visitors to venture beyond their swimming pools and sun loungers.

As a result there are a growing number of rural hotels on the island.  The best known being the Finca De Salinas in Yaiza, thanks to the fact that it’s terracotta paintwork stands out on an island off all white houses.  Along with a growing number of rural holiday villas in Lanzarote available for rent.

Some of the most interesting properties on the island are available with a company called Lanzarote Retreats.  Who offer the only eco friendly accommodation on Lanzarote.  Both at their main site – Finca de Arrieta – in and in various other spots around the island. Finca de Arrieta is as former farm, which still retains a working well and many other agricultural trappings, such as on site chickens and pick your own vegetables.  But there’s where the agrarian lifestyle ends – as the accommodation on offer is both modern and luxurious.  Providing an ideal base for those who really want to get away from it all.

Other properties include the fantastically located Fishermen’s Cottage – right bang on the coast in the small village of Arrieta.  Enabling guests to wake up and go to sleep to the sound of the ocean just outside their bedroom window.  There’s even a fishing rod provided for those who like to catch their own supper.   

Close by in Haria lies Finca La Crucita.  Which was only constructed in recent years but which has been so well done that the building appears to be hundreds of years old.  Guests here can select from a choice of eight different villas. All themed and named after a village in Lanzarote.The Finca boasts great grounds with a swimming pool, chill out zone and well planted gardens.  And is located right in the heart of the stunning Valley of 1000 Palms.  The greenest and most tranquil spot on Lanzarote.  Where locals plant a palm tree for every new born child.

The north of the island in general is less crowded and congested and remains the best choice for anyone seeking an atmospheric location for a villa holiday on Lanzarote.

The credit crunch and the weak state of Sterling against the euro continues to have a negative impact upon Lanzarote´s tourist industry.  With the most recent official figures indicating a drop in visitor numbers of around 20% during the first quarter of this year.  With the British market, Lanzarote´s most important numerically, the worst hit.

As a result local holiday companies and villa owners are finding that many tourists are now booking much later and are actively on the lookout for deals.  Often viewing the same property on a number of websites and to-in and fro-ing between these in order to secure discounts and extras. 

Others have reported a growing problem with cancellations – as some clients makers decide that they cannot forward to pay the balance of their holidays.  Or in some instances are simply unable to find cheap flights to Lanzarote for the dates they have booked accommodation for.

As the economic outlook continues to worsen in the UK it seems likely that competition to secure bookings will only increase.  Which means that price reductions and other inducements, such as free car hire will come into play.  A strategy that favours larger companies rather than individuals – as the former obviously have larger margins and villa rental portfolios to play with. 

Individual owners may well find that they have to market their property much harder in order to simply stand still in terms of bookings and occupancy.  Which means ensuring that their property is featured on the leading sites for Lanzarote villa rentals. 

Amongst the market leaders is Lanzarote Guidebook – which boasts excellent rankings for search terms such as villas in Lanzarote.  Especially in the google.co.uk search engine – which is obviously key for the British market place.

Holiday makers on the lookout for a reduced price deal should concentrate their efforts on the resort of Playa Blanca in the south of the island.  As here there is something of an oversupply of rental property.  As lots of overseas investors have snapped up villas in order to rent them out to their fellow holiday makers. Now that times are getting tougher prices here are likely to drop – as owners of villas in Playa Blanca become more willing to consider doing deals.

The advice for anyone planning to book a holiday villa in Lanzarote this summer is to shop around – and ask for discounts or other concessions.  Such as a deal on car hire or free transfers from the airport.

The many thousands of overseas owners of holiday apartments and villas in Lanzarote will not have welcomed the recent glum news from the Spanish airport operators AENA.  Which reveals that the number of tourists visiting Lanzarote has started to drop dramatically over recent months.  With total arrivals for February falling by 19%and British tourist numbers down by 18.82 % for the first two months of this year.

The fall in the British market is arguably the most worrying.  As the UK is Lanzarote´s largest market and British visitors accounted for around 60% off all tourist arrivals at Arrecife airport last year.  However, the double impact of the credit crunch and the recent depreciation of sterling against the euro have now combined and colluded – and seems to be really taking its toll on Lanzarote´s all important tourist industry.

These figures will inevitably of course impact upon the islands accommodation sector.  And According to ASOLAN, Lanzarote´s hoteliers association, occupancy levels fell by 13% during February across hotels in Lanzarote. 

Whilst many villas and apartments are essentially off the radar when it comes ot officially recorded statistics it seems reasonable to suggest that private holiday property owners are likely to witness a similar fall too.

The bad news isn’t just confined to the British market either.  As double digit drops have been recorded across all other markets – with the sole exception of the Republic of Ireland.  Where arrivals fell by only 3.32% - once again proving testimony to Lanzarote´s enduring appeal amongst Irish tourists.

In Germany, Lanzarote´s second largest source of tourist visitors, arrivals on flights to Lanzarote fell by just over 13% last month.  Whilst big falls were also recorded in Sweden, Norway and Holland too.

This same negative picture is being repeated across Spain, according to the country’s Ministry of Tourism.  As total arrivals in February fell by 15.9% - with visitor numbers from the UK even harder hit, down by 23.4%.

The latest figures will do little to aid the Lanzarote property market either.  As sales have already dropped off sharply versus the same period in 2008.  Thanks to the fact that local banks have – like banks worldwide- tightened their lending criteria.

So whilst many local estate agents are reporting an increase in the quantity of reduced price property on their books there now appears to be few buyers in a position to take advantage.