Credit crunch in Lanzarote
December 17th, 2008 | 
Author: Recent events around the world have all worked together to affect the travel industry. For an Island such as Lanzarote, which is heavily reliant on tourism… this is now very apparent. No – the Island is not dead, despite what “doom and gloomers” would have you believe, but it certainly is going through a testing time. Businesses are battening down the hatches, and taking measures to ensure that they survive the difficult times. So for new people wanting to move to Lanzarote – is it s good idea? Or a bad one?
For those people trying to sell their property back in Ireland or the UK, this isn’t the easiest time. With banks being a lot stricter about lending… less people are buying. So although a family’s personal circumstances may be perfect for making the move… that house sale could be holding them back.
Ok… but what if the property is already sold, and the money’s in the bank waiting? Well… if that money is in pounds, then right now is a horrendous time to get it changed into euros.
But worry not. For house buyers in Lanzarote who have the cash ready, there are many many bargains to be snapped up. Many people are keen to sell for their own reasons, and haggling is achieving new dreams for many potential buyers that would have struggled a year or so ago.
Moving on to employment. Ok – so if you think you’re going to move over with your family of four… and just “get by” with a bit of bar work, and cleaning – then think again. This is a tourist destination remember? So if there are less tourists coming, then there are less jobs in the tourist industry. Most companies on the Island will not consider employing someone until they are actually living on the Island… and many more won’t employ until the person can provide references and experience of Island life too. It’s not personal, it’s just what employers have learned through valuable experience.
However, all is not lost. There are still new people relocating to Lanzarote all the time – who have the know how, gumption, and desire to make a proper living. You’re not likely to make your millions here… but a comfortable living is very achieveable. Starting your own business can be a good way of achieving this. But make sure you do your research and if buying a business, make sure you are given all the support, paperwork, and legal advice to allow you to make an informed decision. Don’t snap up the first “bargain” you see. If the business is selling… then why? Ask as many questions as you can… and make sure you remove those rose tinted glasses. Do your research if you are starting up a business of your own. Make sure there is a market for you. And ask lots of people for their advice and help – don’t just rely on one or two… as opinions can often be skewed.
If you do your research, plan carefully, bring enough money to live on for a few months in case you can’t find work immediately… and come over with your eyes wide open – then the rewards are immense. We should know!
So think carefully about your impending move… and we’ll see you when you get here!
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15 Responses to “Credit crunch in Lanzarote”
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Hi There.
Just to say what a superb web site full of information, just what my wife and I require. We are coming to Lanzarote on 8th Feb 09 for four weeks to see if we like the lifestyle etc, we will be looking at property and making some big decisions. We have been coming to Lanzarote for a few years now but never for longer than two weeks. We would like to live here, so this will be a real taster and tester. Try before we buy, thanks again.
Howard England (Freezing in Yorkshire.)
HI there Howard – and thank you so much for your kind comments. We work hard to make sure that the information on this website is useful for you – and that it remains impartial.
These will be exciting times for you and your family – so savour every moment!
Don’t hesitate to drop us an email if there is anything you cannot find an answer for – we’re very happy to help, just as we were helped!
Kindest regards
Elle
We are crossing fingers and everything else in hope that the UK housing market will start moving again soon. It is depressing not even getting any viewers!
Still another trip to the beautiful island in April should keep us going.
Steve & Sandi
We hope that it changes for you too! Keep in touch guys, and remember we’re here for you!
Elle xx
Hi. About wiring the spain plug. It is important that you leave the protective earth wire (Yellow/green) LONGER than others. This is because if the cable gets out of the socket, the earth comes off last. Also you must take care of tightening the cagel grip to prevent this.
Thanks for the extra tips
Elle xx
Hi
My husband and I along with our 2 children are looking to come out to the Island next year. To say I’m nervous is an understatment. I’ve done a huge amount of research and made some great contacts. Your site has given me some great stuff to think about so thanx. My do not have rose tinted glasses on and I know it’s going to be a struggle, i’m just hoping we can make it. We are looking at long term rental initially. We have some money in the bank to keep us going but I’m still so nervous. Are the nursery facilities out there good? and are they really expensive? My youngest daughter is only 7 months. ANY HELP, HINTS or ADVISE really would be appreciated…as I’m not really sure where to start….
Thanx again Ally
Hi there Ally – I have your email too… so am busy typing out some answers for you via that. Don’t worry too much – yes it’s a big move… but think of the opportunities you are offering your kiddies eh?!
Elle xx
Hi Elle
I know we’re speaking via email but wanted everyone to know what a huge support you have been in just a little time. I think it is really great what you are doing for people on this website and I for one am very glad I found you ….
Ally xx
You’re more than welcome Ally. If this website can help people just a little… then we’ve achieved what we set out to do.
Thanks for your very kind comments.
Elle x
hi there,
i was wandering how many tourists are coming to the island each year and maybe a history of the last 10 years!! could you help? i realize there is a big number of people leaving the island as there is no work and that half the bars along Puerto del Carmen are closing for good. I would not suggest anyone to come to the island looking to start their dream of living in the sun with no worries. If you think that it is like that then i urge you to reconsider. The Academic programs for English speaking children can go to a private English teaching school where the can achieve there GCSE’s and A levels. However the school has not got the best reputation and lacks facilities i.e Shade, Free Drinking Water and showers. If you have children between the age group of 13-18 i strongly recomend they finnish their education in the uk!
Island life is great however you need to be in the rite location and knowing the language is really going to help you when it comes to buying property and getting your residency.
Lanzarote has seen better days than the last 2 years however there is some modernising which could really make this a top destination in the world. In order to attract the wealthy tourists it is crucial that the government realize just what a treasure these islands are and to make them “exclusive” to the rich and famous!
I hope this has helped people with their decision on moving. It is really a bad time to be heading to these islands. perhaps in a decade there will be money to be made.
Once again i stress that the schooling here is awful and for the future of your kids it is best you stay in the uk!!!
Hi “Bob” and thanks for your comments.
Whilst we agree with many of them (as is already borne out elsewhere in this website) there are a couple of points that we would like to address:
There certainly are not HALF the bars in Puerto del Carmen closing. Yes, many are struggling, because as you say… visitor numbers are down… but half is a gross exaggeration. Puerto del Carmen is also not the whole Island – and there are many businesses that are doing very well, because they have the savvy to roll with changes, batten down the hatches and do what is needed to survive.
The schooling here is not awful as a whole. On the contrary, we speak to so many parents who agree that the level of education is excellent. Added to that the education that these kiddies get outside the classroom is immeasurable. Children here are being educated to be polite, respectful, and tolerant of each other. Absolutely agree that parents should consider whether taking their kids out of the GCSEs when teens is worth the upheaval… when waiting for a few years until the kids’ exams are done would be better. There are good school s and bad schools everywhere… good teachers and bad teachers… just as there are good businesses and bad businesses. This is not limited to this Island as I am sure you would agree. Parents need to do their research and make informed decisions.
This website speaks about thinking things through very carefully… and leaving the rose tinted specs off… but at the same time we won’t scaremonger. Not sure that the Canaries will ever be considered a destination exclusive to the rich and famous… as this would take far more money and marketing than people would think. And I certainly don’t want my friends and family being priced out of coming here
.) However, there is no harm in singling out areas for redevelopment that can be targetted in exactly that way – whilst ensuring that the infrastructure is in place.
“I would not suggest anyone to come to the island looking to start their dream of living in the sun with no worries. If you think that it is like that then i urge you to reconsider.” – absolutely right! And posts on this site definitely reiterate that. The home page for starters… it gives top ten tips and stresses that life is not always easy in “paradise”. There are also posts about getting work in Lanzarote that point out that you can’t just roll up and have something land at your feet.
Upshot? It is not a good time to move here if you cannot support yourselves financially until you get on your feet – as is the case everywhere else in the world too… it certainly isn’t limited to the Canaries. But for people with drive, determination, business acumen, savings, and enthusiasm – then the Canaries are right up there as a perfect new home.
Thanks again for your comments – all feedback is appreciated.
Elle xx
Sorry “Bob” – I didn’t answer your first point about the visitor numbers for the past 10 years. These figures are regularly updated on the AENA website amongst others… but we leave that kind of information to the tourist portals that are plentiful on this Island. There are a number of sites that publish this information on a monthly basis.
One of the areas that seems to be doing better for visitor numbers is Turkey (I have holidayed there myself a number of times. However… for me personally… it is not somewhere that I would consider as a home.
Yes it is worth looking at if considering buying or setting up a business… but this information is already in the public domain.
Elle xx
Further in response to Bob’s post and echoing Elle’s response, it is worth making the point that to every (apparent) downside, there is an upside. Many people have avoided holidays in Europe this year, because of the shocking exchange rate at the start of 2009, and Lanzarote has been hard hit by this (though less so than many other European resorts – see AENA stats for details of this). Since the start of the year, the exchange rate has recovered by 18% but it seems this good news has yet to filter through to people, and/or has come too late to be reflected in their holiday plans.
It is certainly tough for many in the Lanzarote holiday trade currently, but it is very likely to get better in 2010 assuming the £:Euro ratestays as it is or improves further (quite likely), and for those thinking in terms of relocating to the island, it is a buyer’s market. The really good news is that there has probably not been a better time to buy a property or business on Lanzarote in the past 10 years, in terms of the price you can negotiate.
On the other hand, if you are thinking of working for someone else, it’s not great over here currently, let’s be honest, and you might be better off leaving your decision or move until well into 2010, when things are almost certain to be better. You could use the time between now and then to do your research and planning based on your own priorities.
Cheers Miles.
Elle xx