Arona's tourism plans and the PMM

Started by TedC, April 12, 2016, 12:05:45

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TedC

Is there is a discreet agenda by the Canary Island s Government, Tenerife in particular, to reduce the number of timeshare resorts in favour of 3 and 4 star hotels and in doing so to increase the quality of accommodation and therefore prices? Since 2003 when law 19/2003 was approved laying out guidelines for the future of tourism, various studies and reports have been commissioned.

One of these, PTOTT, was published in 2005 and concluded that "Tenerife is a mature tourist destination that should not be oriented to beat record of visitors but levels of profitability. To achieve this goal is segmenting the market and improving services. It is much more important to know the profitability of the tourism subsector and make an effort to maintain and increase prices rather than getting an increasingly larger volume of visitors"  It also concluded that the Canary Islands (Tenerife and Arona in particular) needed to upgrade and attract a higher class of visitor, that it had too high a percentage of timeshare (extrahotel) and 1 and 2 star accommodation and too few 3 and 4 star hotels and that other, more lucrative markets (Germany and Scandinavia being mentioned in particular) needed to be sourced as a high dependence was on British visitors who made up a very high percentage of the total.

Various other plans have been proposed since then including Arona's 2006 PGO which was approved in 2011 and  Arona's PMM (Plan de Modernización, Mejora e Incremento de la Competitividad de la Zona Turística de Arona), which had been 10 years in the making and was a very in depth study, being implemented in 2015.

The PMM provides for various incentives for upgrading (amongst others) 1 and 2 star extrahotels (the timeshare resort I own at is classed as a 2 star extrahotel in the plans) including tax concessions and exemptions, subsidies, attractive loans, grants (both Tenerife and EU), and a relaxation of planning restrictions for developers. The current trial in Tenerife of Arona's councillors partly encompasses the PMM as some of the planning approval breaches included the hotels listed in the PMM.

The resort I own at is increasingly being marketed as a hotel by our management company, much to the dislike of owners as the company has totally ignored our constitution by advertising one-night stays and not abiding by the age restriction in place. Also, our management companies 5 year refurbishment plan, if carried out, would have meant the resort met all the criteria for being eligible for the incentives in the PMM. This plan included installing solar panels which is one of the criteria.
Perhaps I am being  a little paranoid or have misinterpreted everything but it seems to fit in with what's happening at various resorts

TedC


Gordon Dickson

If Arona council was trying to reduce the number of timeshares in favour of a change to 3/4 star hotels then handing out large fines, like the 1.6 million euro fine to The Regency Country Club would make sense.
This would certainly p*** off the timeshare companies and developers.
What happens to all the punters who own in these timeshares? That would make them return to Tenerife and pay for accommodation NOT.

TedC

The Regency Country Club is one that is listed in the PMM as 'Renewal of Tourist Accommodation Establishments ', it is listed as a Hotel.
I certainly believe that, in the short term, timeshare owners are necessary to fund, via maintenance fees, the refurbishment of the resorts to a high standard. Our management company was sold to another last year and the new owners market all the resorts in its care as hotels, they contribute little if nothing in the way of investment and, as described in PTOTT, have doubled rental prices, but most of the increase is swallowed up in commission, owners getting little more than the maintenance fee.

There was a seminar in Tenerife last year called 'Timeshare - A key to the future of the Hotel Business' where it discussed how timeshare can revitalise the Hotel Industry at little cost and improve income during the low season, something our management company has alluded to in media interviews. In January this year Jorge Marichal of ASHOTEL described timeshare as not dead but in the past and hotels being the future of tourism in the Canary Islands.

Gordon Dickson

Strange it is listed in PMM as a hotel yet Arona council fine them for trading as such!
Of course yet another income stream for the council in fines AND to sell them a new license!
And of course who funds the running of this Hotel yes the timeshare owners!

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