Canary Islands Tourism Shows Signs of Slowdown Amid Record Spending

The tourism industry in the Canary Islands is experiencing early signs of a slowdown, as reported in September 2025. This development comes despite the region’s historical significance as a premier holiday destination, known for its stunning landscapes, pleasant climate, and vibrant culture.

Decline in Hotel Stays

According to data from Spain’s National Statistics Institute (INE), hotel overnight stays in the Canary Islands fell by 2.4% compared to September of the previous year, totaling 5.8 million. This decline, while concerning, is contextualized by the fact that it still marks the fifth-best September on record for hotel stays in the region. The Canary Islands have long been a favorite among both domestic and international travelers, and this slight dip may reflect broader trends in travel behavior rather than a fundamental weakness in the market.

While the number of overnight stays decreased, the revenue figures remained positive. Visitors are spending more on accommodation, dining, and leisure, even as their overall stays shorten. In the summer months, overnight stays slowed, but revenue rose by 8.2%, with the number of nights booked increasing by only 1.5%. This trend indicates a shift in consumer behavior, where tourists are opting for shorter, yet more luxurious experiences, contributing to a robust financial performance for the hospitality sector.

Visitor Spending and Trends

The tourism think tank Exceltur attributes the increase in spending to higher prices rather than a rise in visitor numbers. In September, the average daily room rate reached €131.90, reflecting a 5.1% year-on-year increase, while overall hotel prices climbed by nearly 7%. This increase in costs may be a result of inflationary pressures affecting the hospitality industry, as well as a strategic move by hotels to enhance their offerings and cater to a more affluent clientele.

In total, the islands welcomed 888,157 tourists in September, which is a 0.6% decrease from the same month last year. Of these visitors, 26.5% were Spanish residents, while 73.5% were foreign tourists. Spanish tourism remained stable, while international arrivals dipped slightly by 0.8%. This data highlights the importance of both domestic and international markets for the Canary Islands, with a diverse visitor profile that helps to stabilize the tourism economy.

Future Outlook

Despite the current slowdown, forecasts for the Canary Islands remain optimistic. The region is expected to end 2025 with 18.4 million visitors and €23 billion in total tourism spending, setting a new record for the archipelago. This projected growth underscores the resilience of the Canary Islands as a travel destination, even in the face of global economic uncertainties.

Employment in the hotel sector also saw a rise of 2%, reaching 59,352 workers, with an average occupancy rate of 74%. Compared to other Spanish regions, the Balearic Islands led hotel occupancy in September at 81.4%, followed by the Canary Islands at 74.1% and the Basque Country at 70.2%. This increase in employment is a positive indicator of the sector’s health, suggesting that businesses are preparing for a rebound in visitor numbers.

As the winter season approaches, the islands anticipate a renewed increase in visitors, particularly from the UK, which remains the largest source market. Airline forecasts predict a 4.3% increase in British arrivals, with Gran Canaria seeing an 11.2% rise in air capacity. Tenerife is expected to remain the most popular destination with 1.39 million expected arrivals, followed by Lanzarote and Gran Canaria. This anticipated influx of tourists is crucial for local economies, which heavily rely on tourism for their livelihoods.

Germany is expected to continue as the second-largest market, although a 3.6% drop in arrivals is anticipated. Analysts describe the current phase as one of maturity and transformation for the Canary Islands’ tourism sector, focusing on quality over quantity and a more sustainable model based on higher spending per visitor. This shift towards a more sustainable tourism model is essential for preserving the natural beauty and cultural heritage of the islands.

Even with a slight dip in overnight stays, the Canary Islands continue to be one of Europe’s most resilient and profitable year-round destinations, with the upcoming winter season likely to reinforce this trend. The combination of strategic marketing, enhanced visitor experiences, and a focus on sustainability positions the Canary Islands well for future growth in the competitive tourism landscape.

Key Points

• Hotel overnight stays in the Canary Islands fell by 2.4% in September 2025.
• The region recorded 5.8 million hotel stays, marking the fifth-best September on record.
• Visitor spending increased, with an average daily room rate of €131.90, a 5.1% rise year-on-year.
• The islands welcomed 888,157 tourists in September, a 0.6% decrease from the previous year.
• Employment in the hotel sector rose by 2%, reaching 59,352 workers.
• The Canary Islands are projected to have 18.4 million visitors and €23 billion in tourism spending by 2025.
• The UK remains the largest source market for visitors, with a forecasted 4.3% increase in arrivals.