Tourism has been an important source of income to the Spanish economy. The tourist phenomenon began to emerge strongly in the sixties. Spain was an attractive country to visit due to the sun, beaches, the culture and the gastronomy, cheap prices and the cheerful nature and hospitality of the Spanish people, etc.

The growth of tourism on a world level was less during the first eight months of 2001 than corresponding period in 2000. The world economy has, without a doubt, has suffered even more due to the events of 11th September in the United States. The number of journeys by plane has gone down dramatically. Many airlines have suffered a drop in sales and some companies have even disappeared due to them being unable to overcome financial difficulties.

This current situation has similiar precedents to the oil crisis in the mid seventies. World tourism figures have dropped considerably as people seem to prefer to travel within their own country.

Other economic problems such as foot and mouth disease, the strength of the dollar, the Arab-Isreali conflict and the crisis in Argentina have also affected the world economy and in turn tourism. However in spite of all this Spain has become the second most poplular tourist destination on a world level, with an inflow of 49.5 million tourists. Spain continues to be a safe, stable and competitive country and for this reason is benefitting from the instability of Northern Africa and the drop in transatlantic flights.

Although the Spanish tourist industry is reasonably healthy it should be careful Tour Operator reservations are developing very slowly. Europeans, especially the British and the Germans (our most abundant clients in the Canary Islands) who usually book their holidays six month in advance, have changed their habits leaving the tourist sector in the midst of confusion. This phenomenon has meant that Hoteliers have had to make changes in their organization and also poses a threat as Tour Operators are faced with financial problems and consequently begin to start wars on prices, which at the moment is not the case but it could well be what will happen in the future. If prices drop then the quality of service will also drop and it will become a vicious circle for business people in the tourist industry.

In Germany and England there is a fear of loss of jobs which perhaps is one of the reasons to explain the drop in reservations with respect to previous years.

The summer could be turbulent. Everything will depend on the evolution of the European economy. In the past, reservations were made more in advance than now. Tour Operator bookings have dropped to between 15-20% compared to the same period of the previous year. They are however, confident that there will be last minute bookings. The World Tourism Organization has declared that 2002 will be a difficult year for tourism on a worldwide level and the best to hope for is zero growth. Spain is not only becoming stronger as a cheap and competitive market but also as a modern and advanced destination. It is only by being a modern and advanced destination that Spain will be able to attract a higher class of tourism. A great deal of importance must be placed on the renovation and modernisation of hotels and apartment complexes and more importantly on the training of personnel. It is also very important to diversify the type of tourism on offer: rural tourism, cultural, sport etc.

In spite of all the bad news that has been mentioned in this article, it can only be hoped that things will change in the second half of of 2002 and that people will regain confidence in travelling. In this sense it will be very important to see how the American and European economies get on, above all the European economy as it is the one which affects Spain and the Canary Islands with regard to tourism on an international level.