Recession Hits Lanzarote Hard by Henry Ashworth

The number of holidays sold this year has taken quite a hit, and with it many areas which rely to a large part on tourism for their economy have suffered financially.
But for Lanzarote the show goes on - the weather is far better than many holiday destinations in Europe during the autumn and winter months, and the island is as geared up for autumn and winter tourists as it is for the summer.
But the weather in Lanzarote hasn't been enough to see a slump in the number of holidaymakers deciding to visit - with just a couple of months to go before year end there could be up to 20 per cent fewer tourists on the island in 2009 compared to 2010.
The economy has taken a direct hit on the number of people taking flights to Lanzarote this year, but with the UK being a major market for the island a second factor has come into play, giving all countries who have the Euro as their currency a double whammy if a large part of their tourism derives from the UK.
The British pound has nosedived in value against the Euro, and at times has come close to parity, with a net result that a holiday in Lanzarote has become significantly more expensive while on the island for British tourists.
And the type of holiday in Lanzarote being taken by British tourists has changed for many this year, until recently people were increasingly booking their flights, hotels and car hire seperately, getting good deals from different internet sites for each component of their trip.
But with the currency exchange being so poor for British tourists many have gone back to old fashioned all inclusive holidays in Lanzarote, where not only the flights and hotel are booked together, but meals and locally produced drinks are included in the overall price.
Which is good news for the holidaymaker and for tour operators such as Thomson Holidays, as it allowed tourists to keep their spending down while at the same time it meant they could still go on holiday - but with this shift back to package holidays was there a loser?
The answer is yes - local businesses.
While a lot of holidaymakers were creating their own holiday packages, most would have their lunch and evening meal out and about. With the shift back to the all inclusive holidays with tour operators this has been on the decline, and has hit local bars and restaurants hard.
So while there is good news for the travel industry where tour operators creatively make holidays to Lanzarote possible for those watching the pennies, the flip side sees ex-pats who bought bars and restaurants on the island in some cases going bust, and in nearly all situations experiencing a serious decline in revenue that can't be sustained indefinitely on personal savings owners might have going into support their business.
The hope is that the economy will pick up and both the holidaymaker and the island's businesses can start enjoying all that is good about Lanzarote.

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