Hotel prices in the Canary Islands rose by 5% in May

  • Canarian Weekly
  • 24-06-2024
  • National
  • Photo Credit: CW
Hotel prices in the Canary Islands rose by 5% in May

Hotel prices in the Canary Islands saw a modest increase of 5% in May, lower than the national average of 8.1%. This data highlights a rebound in room rates after a period of relative stability in April. The rise in prices coincides with a surge in demand, as hotel stays in May exceeded 35.7 million, marking a historic high for the month.

According to figures released today (Monday) by the National Institute of Statistics (INE), hotel accommodation prices have shown significant increases since June 2021, following the pandemic. The peak was near 30% in April 2022, although the lowest increase in this period was recorded in April 2023 at 4%.

Price hikes were most pronounced in Madrid, which saw a 17.1% increase, followed by the Basque Country (14%) and then Valencia (10.6%). In other major tourist regions, price increases were as follows: Andalusia (8.3%), the Balearic Islands (7.7%), Catalonia (5.7%), and the Canary Islands (5%).

In contrast, more moderate increases were observed in Navarre (2.8%), Extremadura (2.9%), La Rioja (3.1%), and Asturias (4.4%).

Price changes by star rating

By category, one-star hostels experienced the highest price increase at 10%, followed by five-star and two-star hotels, both over 9%. More moderate increases were noted in two and three-star accommodations (4.8%) and four-star hotels (7.5%).

The average daily rate (ADR) for an occupied room reached €111.60, a 9.2% increase, while the revenue per available room (RevPAR), a better indicator of sector profitability, stood at €78.70, up 15.6% from the previous year.

RevPAR surged to €119.00 in Madrid (up 25.7%) and exceeded the national average in regions such as Aragón, Asturias, Cantabria, Castilla-La Mancha, Valencia, Galicia, and Murcia. Conversely, it dropped in Ceuta (nearly 10%) and La Rioja (1.3%).

Record-Breaking Overnight Stays in May

The number of nights spent in hotels in Spain increased by 11.1% compared to May 2023, reaching a new record of 35.7 million nights. Non-resident stays grew by 12.3%, while domestic stays increased by 8.1%. In the first five months of 2024, overnight stays rose by 8.2% compared to the same period in the previous year, with non-residents' stays up by 12.2% and residents by 1.1%.

In May, Andalusia, Catalonia, and Valencia were the top destinations for domestic travellers, accounting for nearly 50% of their total stays. Non-residents primarily chose the Balearic Islands, Catalonia, and the Canary Islands, comprising about 70% of their total stays.

Top Tourist Areas

Mallorca recorded the highest number of overnight stays, exceeding 6.3 million. The leading tourist spots in terms of hotel nights were Barcelona, Madrid, and Calvià in Mallorca. Travellers from the United Kingdom and Germany accounted for more than 45% of the total non-resident overnight stays in May.