Expansion of the “all-inclusive” hotel sector in Lanzarote

Recently, hotels offering all-inclusive packages have been taking a greater and greater share of the total hotel accommodation available in Lanzarote. Year after year, demand for this type of tourism has been steadily growing all over Spain and many tour operators are now demanding that hotels provide this type of deal in order to satisfy the demand that exists from this kind of visitor. The Tourist Business Association of Lanzarote (Aetur) estimates that over 30 percent of all the hotels in Lanzarote now offer this type of service, whilst if we go back only as far as 2009 only 25 percent of hotels in Lanzarote offered this option.

“There is a very high percentage of hotels that now offer the all-inclusive service option. In specific areas, such as Playa Blanca, there are hardly any hotels that are not all inclusive”, the president of Aetur, Victoriano Elvira, stated. In recent months several additional establishments have chosen to include this option to compliment their existing services. Among others, the Occidental Grand Teguise Playa hotel, La Geria hotel and two Riu hotels in Puerto del Carmen have started to offer the all-inclusive service, with the latest addition being the Hotel Beatriz Costa Teguise.

According to the president of Aetur this trend is a concern for the members of his association because low prices remain an unwelcome feature of the tourism sector in Lanzarote and the all-inclusive deals make it difficult to push prices up again. Hotel profits only begin when occupation levels of around 80 percent have been achieved. According to statistics published by the Tourist Office of Lanzarote, the average discretionary expenditure per tourist is around 101€, which “sounds almost ridiculous” according to Victoriano Elvira. “Including air fares, the hotel and everything else, in 2009 each visitor spent on average 1042€, while in 2010 the average expenditure per guest was 1014€. This does not seem like a big difference, but the prices in the tourist sector remain very low. We have kept the rates down for five or six years and we can not go any lower”.

This entry is filed under Lanzarote Hotels.