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Retail sales in the Canaries have registered a year-on-year drop of 4.4%, one point more than the national rate, with a markedly increased fall over the first quarter of this year, and commercial-sector unemployment has now reached 25,827 in March, up 13.8% over the last year.
These details have emerged from a report on Canarian Business for the first quarter of 2008 drawn up by the Dept of Economic Studies in Santa Cruz, a report which also measures business confidence at its lowest point for the last four years.
The President of Fedeco (The Tenerife Federation of Commerce), Luis de Miguel Bartolomé, warned that the future of many established Canarian businesses was up in the air if something wasn't done quickly to change the economic cycle. If it isn't, he said, the closed sign will be hanging on the doors of many commercial premises in the Canaries.
To be honest I think a lot of shops have themselves to blame.. For example years ago perfume was cheap in the canaries, now it is cheaper to buy it in the uk. If its tax free on tobacco and booze why not perfume and if perfume is tax free why the prices
I think since the euro came in a lot of buisnesses have trebled prices and now people are used to the euro they just arnt willing to pay rip off prices..
Maybe sprouting hot air but its how it looks to me on the outside
Yes, agreed, though they're also talking about very average little Canarian businesses that tourists never ever see. And it doesn't end there ...
A report in Canarias7 today shows that reduced business performance results in reduced Government revenues ... of 20 million Euros ... with the inevitable knock-on effect on Government budgets.
This is really beginning to look like a proper recession ....
Had a look at the link but cant do spanish.... I think though, theres a global recession on. In the UK, its the housing market and fuel aswell as all the supermarkets putting stuff up. My local asda put loads of stuff up 20p an item. When carol asked why, the member of staff said it was to offset the rise in fuel for the delivery lorries. Ok, but how many items like yoghurts and the like fit in a lorry and each one at 20p I think thats the usual of, greedy number crunchers making the most of another westminister balls up..
Why we all have to suffer is beyond me...The news said it all stems from bad loans and mortgages given in the states... So stuff the states, their mistake, not ours or any other countries problem....
Im sure all the governments will think up some sort of spin to redirect our attetion away from breadline living and closed up shops or am I being a bit synical
There was a bit in one of the papers that said travel agents are feeling the pinch as something like 20% down on previous years bookings for this period. However the bookings for out of season has gone through the roof. It states that most people arnt happy with paying the inflated "peak season" rates that all the operators charge. I think that the islands quiet times will be a lot buisier this year and hopefully the extra out of season trade will balance out the yearly balance sheet. Afterall if they are taking cheaper flights and packages they will have more to spend whilst over. I dont know how much that will effect the locals un touristy buisnesses but the expats relying on the tourists may take some comfort from a boost in the latter part of the year
I think since the euro came in a lot of buisnesses have trebled prices and now people are used to the euro they just arnt willing to pay rip off prices..
Maybe sprouting hot air but its how it looks to me on the outside
I think there was an element of price increases due to the change over to the Euro, where companies used the change over to reposition certain price points HOWEVER, you have to also realise that business costs have increased.
Here in the UK (for example), my fuel costs to run my shop have almost doubled over a 3 year period. Petrol has gone through the roof so all my delivery companies are charging me more, goods coming into my shop are costing more and the weak £/€ exchange is forcing the cost of my EEC imports to increase.
As a result, the prices I have to charge in order to maintain the same profit margins has increased also.
I work in an environment where around 60% of my stock is forward ordered - that is, I order goods 9 months before I receive them, as a consequence, I am at the mercy of currency fluctuations when I order from Spanish, German or Italian manufacturers.
A typical example of this is a new range of garments we had in for this season, it came from an Italian company and is invoiced in €'s.
A jacket I ordered last September for delivery February/March this year was supposed to retail at around £99, because of the currency fluctuations I have now got to sell it at £115 inorder to maintain my profit margins - something I in turn have to try and do because I am facing increased pressures from my 'fixed costs' to my nett margins.
I would think that whilst the currency fluctuations would not have as much of an impact on actual prices in Tenerife, they do have an impact on the perceived prices. When UK visitors 'translate' the currency into sterling there is a large difference in prices since last year, making Tenerife businesses seem expensive.
I think that the islands quiet times will be a lot buisier this year and hopefully the extra out of season trade will balance out the yearly balance sheet. Afterall if they are taking cheaper flights and packages they will have more to spend whilst over. I dont know how much that will effect the locals un touristy buisnesses but the expats relying on the tourists may take some comfort from a boost in the latter part of the year
I guess a lot of it is interconnected, simply because many locals work in businesses connected in some way with the tourist industry. What they're talking about here, though, is specifically retail trade ... and that ties in with the global recession, because we import so much that is increasing in value that there is little left in most purses for just "buying" things.
Business confidence hits four-year low 
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