On paper, the scenario was catastrophic. With the blockage of the Strait of Hormuz, the explosion in the price of a barrel of oil and the surge in kerosene, an ultra-peripheral archipelago dependent 100% on air travel like the Canary Islands should have collapsed. However, the exact opposite is happening. Thanks to an astonishing “shield effect”, the Spanish archipelago is doing well against its competitors.
The security shield in the face of instability in the Middle East
The first strength of the Canaries in this context of crisis is its stability. The tensions at
Middle East and the Persian Gulf caused immediate distrust in the issuing markets towards the Eastern Mediterranean and North Africa.
In this climate of global uncertainty, the Canaries are establishing themselves as an absolute refuge for European tourists. The archipelago indeed ticks all the reassurance boxes:
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Membership in the territory of the European Union.
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Strict Western health standards.
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Unfailing political stability.
The sinking of the long haul benefits the medium distance
The energy crisis has seriously hurt long-haul tourism. Fuel surcharges (the famous YQ taxes) applied by airlines have made traditional winter destinations like the Caribbean or South-East Asia inaccessible for the budget of the European middle class.
This is where the location of the Canaries becomes a formidable weapon: located just 4 or 5 hours by flight from Europe, the archipelago offers the only warm and moderate climate accessible without having to cross the Atlantic Ocean. Travelers prefer to pay a slightly more expensive medium-haul ticket rather than give up their vacation in the sun.
The maritime jackpot of Las Palmas and Tenerife
But the impact of the crisis does not stop at the sky, it is also disrupting the oceans. To avoid areas of
conflict in the Middle East, many merchant and cruise ships now bypass Africa via the Cape of Good Hope.
Direct consequence: the ports of Las Palmas (which is already full) and Santa Cruz de Tenerife find themselves propelled to the center of the world maritime map. Fueling services (bunkering), ship repairs and supplies massively inject capital into the local economy.
In the longer term, this vulnerability linked to oil is forcing the islands to unprecedentedly accelerate their ecological transition, by prioritizing renewable energy projects which previously stagnated.
The expert of Mister Travel News
Geography, destiny or (sometimes) a stroke of luck?
When the price of kerosene reaches stratospheric heights, distance becomes public enemy number one of the tourism industry. The Canaries are located exactly in what the Anglo-Saxons call the “sweet spot” : this is the maximum geographical limit that the European middle class is prepared to pay to escape the winter gray.
The irony of the story is fascinating: an oil crisis that should ruin an island dependent on airplanes is transforming it into a giant gas station and a major logistics hub in the Atlantic. Normally, commercial and cruise ships traveling between Asia and Europe pass through the Suez Canal and the Strait of Hormuz. But with the current blockage and geopolitical tensions in the Middle East, these ships are forced to flee this conflict zone, and they are completely bypassing the African continent via the Cape of Good Hope.
By changing their route, the Atlantic Ocean once again becomes the number one global maritime highway. Just before the ships sailed back to northern Europe; the Canary Islands. The ports of The Palms (which was completely sold out) and Santa Cruz de Tenerife are ideally placed to ensure the technical stopover of these giants of the seas. Add to this the cruise companies which are massively fleeing the Middle East to relocate their ships in the Canary archipelago, and you obtain a territory which is reaping the benefits of the global crisis on all fronts (air and sea).
Les conseils de Mister Travel NewsÂ
So how can you use this “Canarian miracle” in your sales?
* Do you have customers who are complaining because their usual quote for Thailand or the Dominican Republic has increased by 30% because of the flights? Immediately pivot their project towards the Canaries by offering them very high-end products (5-star hotels, private villas). With the budget saved on the long-haul flight, they can afford absolute luxury in just 4 hours of flight.
* In an anxious world, the European Union’s argument is massive. Remind your customers, especially families and seniors, that in the Canary Islands, the currency is the euro, the European Health Insurance Card works, and there is no risk of unexpected airspace closures. Sell peace of mind, this is the most expensive product on the market today.
*Â Ships fleeing the Red Sea and Persian Gulf were repositioned on the islands. The offer of cabins has never been so strong in the destination. This is the ideal time to offer itineraries of 7 to 14 days around these islands, an excellent alternative for your regulars of Eastern Mediterranean cruises who are looking for something new and safe.
