Private Rentals do better than hotels in Tenerife
When times are tough, we still all need a holiday. It is a sign of the times that many people’s holiday budgets are more strained, but this is working to the benefit of property owners in Tenerife.
In contrast to most of the doom and gloom reports about the local economy over the last few months, April saw some reassuring tourist figures. Tourism decreased by only 0.89% compared to the previous year, well ahead of Spanish and Global tourist figures. However, the decrease in accommodation was by no means uniform as greater numbers of tourists stayed in privately rented accommodation.
The worst affected were the hotels, who saw a 3.04% drop in visitors. This loss was made up by the private rental sector which experienced a growth of 2.56% in tourist numbers. Although hotels are more optimistic for the summer months, the mood amongst many private property owners who focus on the holiday market is buoyant with strong advance bookings.
Not only is demand for holiday rental greater, but the cheaper price of purchasing property means that owners who buy now will experience much higher rates of return from the market. June and July appear to be busy months for property sales of this type as investors rush to complete and gain a slice of the lucrative summer holiday bookings.