sus ainabili y
A icle
A Decision-Making and Go e nance F amewo k o
he Renewal o Tou ism Des ina ions: The Case o
he Cana y Islands
Manuel Rod íguez-Díaz 1,* and Rosa Rod íguez-Díaz 2
1Depa men o Economics and Business Managemen , Uni e sidad de Las Palmas de G an Cana ia,
35017 Las Palmas de G an Cana ia, Spain
2Depa men o Financial Economics and Accoun ing, Uni e sidad de Las Palmas de G an Cana ia,
35017 Las Palmas de G an Cana ia, Spain; osa. [email p o ec ed]
*Co espondence: [email p o ec ed]; Tel.: +34-928-452-802
Recei ed: 10 Decembe 2017; Accep ed: 21 Janua y 2018; Published: 25 Janua y 2018
Abs ac :
Tou ism des ina ions in ad anced s ages o he li e cycle need o upda e hei lodging o e s
and in as uc u es. The main p oblem is ha new des ina ions a e planned acco ding o he new
p e e ences o cus ome s, c ea ing c i ical p oblems in olde des ina ions ela ed o he a chi ec u e o
he buildings, size o he ooms, dimension o lodgings, complemen a y o e , and in as uc u es.
The aim o his pape is o de elop a decision-making and go e nance amewo k o he enewal
o des ina ions in an ad anced s age o he li e cycle ha equi e he eno a ion o he lodging
o e and in as uc u es in o de o inc ease hei compe i i eness and sus ainabili y. The decisions
we e planned and ca ied ou in he Cana y Islands by s akeholde s in ol ed in he public and
p i a e sec o s. The e alua ion o ac ions o enew he lodgings and in as uc u es h ough special
legisla ion, leade ship, sou ces o inancing, and in es men gua an ees is p esen ed o de e mine he
le el o success ob ained. Because he Cana y Islands is one o he main ou is des ina ions in Eu ope,
he ac ions and p ocedu es p esen ed can be used in o he des ina ions wi h simila cha ac e is ics.
Keywo ds:
ou ism des ina ion; lodging; enewal; li e cycle; sus ainabili y; ela ional capabili ies;
s akeholde s
1. In oduc ion
The compe i i eness o ou ism des ina ions depends on he le el o upda ing o he lodging
o e and in as uc u es, based on he new p e e ences o cus ome s, he s a egy o compe i o
des ina ions, and he le el o leade ship among he s akeholde s [
1
]. Acco ding o Rod íguez-Díaz
and Espino-Rod íguez [
2
], ela ional capabili ies a e undamen al o o ganizing and ca ying ou
ac ion p og ams designed o inc ease he compe i i eness o he esou ces and capabili ies o he
ou ism des ina ion. The ad anced s age o he li e cycle o he des ina ion is c i ical o deciding he
bes way o enew and upda e he main ac o s in ol ed in he lodging o e [
3
–
5
]. The eno a ion o
he lodging o e and ou ism in as uc u es has implica ions o he economic sus ainabili y o he
des ina ion [
6
–
8
]. The go e nance o des ina ions has o de elop sys ems and p ocedu es in o de o
main ain hei compe i i eness, and he applica ion o e ec i e leade ship o make s akeholde s wo k
oge he o achie e he same common objec i e is qui e complex [
1
,
2
,
6
]. In he academic li e a u e,
ew s udies ha e analyzed he enewal o ou is des ina ions, and so he analysis o he p ac ical
ac ions ha ha e been ca ied ou and hei esul s is o g ea in e es o he e ec i e go e nance o
ou is des ina ions and scien i ic esea ch [8].
Changes in compe i i eness and he success o he combined ac ions o he pa ne ships equi e
an adap a ion o he skills and s a egies in each s age o he li e cycle o des ina ions [9]. The Cana y
Sus ainabili y 2018,10, 310; doi:10.3390/su10020310 www.mdpi.com/jou nal/sus ainabili y
Sus ainabili y 2018,10, 310 2 o 18
Islands (Spain) ou is des ina ion has been de eloping o mo e han 60 yea s (i cu en ly ecei es
15 million ou is s pe yea ). The Cana y Islands is an a chipelago in he mid-A lan ic, composed o
se en main islands. F om he ea ly 1960s o he i s pa o he 1980s, he ou ism model applied
was based on non-ho el accommoda ions. The i s ho els basically had h ee s a s and small ooms.
Only a ew lodgings had i e s a s. Cus ome s demanded his ype o lodging; howe e , since he end
o he 1980s and 1990s, cus ome s began o change hei p e e ences, inc easing hei bookings in ho els.
The main e ec s we e ha he i s ou ism zones (Playa del Inglés-G an Cana ia Island, Pue o de
la C uz-Tene i e Island, Pue o del Ca men-Lanza o e Island) had old buildings wi h an a chi ec u e
o ien ed owa d non-ho el lodgings wi h ew ho els, complemen ed by se ices a eas concen a ed
in shopping cen e s. San os e al. [
10
] es ablished ha 81% o he lodgings in he main consolida ed
ou is zones we e buil be o e 1995.
Rod íguez-Díaz and Espino-Rod íguez [
2
] p oposed a model o e alua e he s a egy o a ou ism
des ina ion, and hey es ed i on he Island o G an Cana ia (cu en ly ecei es 4 million ou is s
pe yea ). The esul s showed ha he non-ho el (o ex a-ho el) ac o had a low in e nal s a egy
alue and a low ela ional s a egy alue. The in e nal iew is based on he esou ces and capabili ies
heo y [
11
–
16
], and i de e mines he co e compe ences o he des ina ions depending on hei s eng hs
and weaknesses. Mo eo e , he ela ional iew deals wi h he ela ional capabili y [
17
,
18
], combina i e
capabili y [
19
], abso p i e capaci y [
20
], he in eg a ion o p ocesses [
21
] o esou ces and capabili ies
o des ina ions [2], and he sus ainabili y o des ina ions as in eg a i e sys ems [22].
Rod íguez-Díaz and Espino-Rod íguez [
2
] p oposed he ehabili a ion o he non-ho el o e in
he des ina ion o G an Cana ia Island ollowing s a egic ac ions based on he in e nal and ela ional
iew, in o de o ob ain he des ina ion’s sus ainabili y. F om he in e nal iew pe spec i e, he main
ac ion o p omo e is he eno a ion o apa men complexes, adap ing hem o cus ome s’ new
p e e ences. Fu he mo e, he ela ional iew was analyzed on he basis o he in eg a ion and
sus ainabili y o his speci ic esou ce. In eg a ion implies seeking syne gies wi h o he companies
o wi h complemen a y o e s, whe eas sus ainabili y is ocused on he applica ion o en i onmen al
managemen in lodgings. Finally, he s akeholde s in ol ed we e he companies hemsel es, along wi h
he di e en go e nmen s in ol ed in eno a ion planning, and ep esen a i es o he inancial indus y,
who would supply he economic esou ces needed o implemen he eno a ion o he lodgings.
Ano he way o analyze he ele ance o a esou ce o capabili y is h ough i s ela ionship wi h
he ou ism des ina ion’s pe o mance [
23
–
25
]. Rod íguez-Díaz and Espino-Rod íguez [
8
] ca ied ou
a s udy o de e mine he co ela ions be ween he sus ainabili y ac o s, based on he esou ces and
capabili ies o he G an Cana ia Island des ina ion and he pe o mance o he des ina ion and i s
cus ome s. One o he ac o s ob ained was he “ex a-ho el o e ”, which main ains a posi i e and
signi ican ela ionship wi h he des ina ion’s pe o mance, bu he ela ionship wi h he cus ome ’s
pe o mance was no signi ican . These esul s showed ha he non-ho el o e is pe cei ed by
s akeholde s as qui e impo an o he compe i i eness and sus ainabili y o he des ina ion, bu he
need o upda e his o e appea ed o be less decisi e o cus ome s. In his con ex , Rod íguez-Díaz
and Espino-Rod íguez [
8
] (p. 12) concluded “ ha he eno a ion o he ex a-ho el o e would p o ide
a s a egic ad an age o he u u e sus ainabili y o he des ina ion. Fu he mo e, i is necessa y o he
eno a ion o his ype o lodging o be linked o he image and emo ional expe ience o he ou is s,
in o de o main ain hei le el o loyal y o he des ina ion”.
Des ina ions can, he e o e, ollow he me hodologies p oposed by Rod íguez-Díaz and
Espino-Rod íguez [
2
,
8
] o de ec he need o enew he lodging o e and in as uc u es and hei
impac on he des ina ion’s esul s. Thus, i is possible o analyze he case p esen ed in his pape in
o de o de e mine he ac ions ha bes adap o he condi ions o each des ina ion o be enewed. In his
con ex , he ela ional capaci y in a ou is des ina ion is de e mined by he deg ee o in eg a ion and
sus ainabili y c ea ed among he di e en esou ces, capabili ies and s akeholde s in ol ed. A ela ional
capaci y can be de eloped when wo o mo e esou ces and capaci ies ac in such a way ha hei
mu ual bene i s a e enhanced h ough hei in eg a ion. Fo example, i he a ac ion o a des ina ion
Sus ainabili y 2018,10, 310 3 o 18
consis s o sun and beaches, syne gies a e achie ed i he des ina ion akes ad an age o c ea ing a low
o clien s owa d museums, leisu e, o complemen a y ac i i ies. Ano he example can be ound in he
di e en public adminis a ions when hey wo k independen ly (low ela ional capaci y) o oge he
(high ela ional capaci y). Mo eo e , sus ainabili y i sel has a a - eaching sys emic iew. The e o e,
ac ions o in eg a e esou ces and capaci ies mus be gea ed owa ds main aining en i onmen al,
economic, and social sus ainabili y. A high le el o ela ional capaci y would occu when in eg a ion
p oduces high syne gies be ween esou ces and capabili ies in a sus ainable way, i.e., o e he long e m.
By con as , when syne gies a e weak o may a ec he u u e compe i i eness o he des ina ion due
o a loss o en i onmen al, economic, o social quali y, ela ional capaci ies a e no c ea ed, and he e is
a isk ha he des ina ion will e en ually lose i s a ac i eness.
The eno a ion and adap a ion o he ou ism o e in o de o mee he demand is a key o
main aining he compe i i eness and sus ainabili y o ou ism des ina ions [
6
,
26
–
34
]. The objec i e
o his pape is o de elop a decision-making and go e nance amewo k o enewing he lodging
o e and in as uc u es o a ou ism des ina ion, based on he ac ions ca ied ou in he des ina ion
o Cana y Island. The s udy will demons a e ha he ehabili a ion ac i i ies o non-ho el lodgings
p oposed by Rod íguez-Díaz and Espino-Rod íguez [
2
], based on he in e nal and ela ional iew, ha e
been applied, showing ha he de elopmen o ela ional capabili ies among he s akeholde s in ol ed
is he only way o ob ain he objec i e o ehabili a ing he o e . In he nex sec ion, a amewo k is
de eloped o he enewal o he lodging o e and in as uc u es o a ou ism des ina ion, and he
main ac ions ha mus be ca ied ou by he s akeholde s a e p oposed. Then, he e alua ion o he
ehabili a ion implemen ed by he Cana y Go e nmen is p esen ed. The s udy ends wi h he main
conclusions ob ained om he applica ion o he measu es in he des ina ion analyzed.
2. Renewal F amewo k
The decision-making and go e nance amewo k o enew he lodging o e and in as uc u es
p oposed in his s udy is based on expe iences in he des ina ion o he Cana y Islands (see Figu e 1).
I is a amewo k based on ela ional capabili ies [
2
,
18
,
19
,
35
] because he ac ions o be pe o med mus
be coo dina ed and implemen ed by di e en s akeholde s om he public and p i a e sec o s [
1
,
36
–
39
].
In his con ex , Rod íguez-Díaz and Espino-Rod íguez [
18
] es ablish ha he combined success o
he des ina ion and i s indi idual companies depends on he e ec i eness o he coo dina ion and
collabo a ion among he des ina ion’s indi idual esou ces and capabili ies, as well as i s leade ship
and go e nance, implemen ed h ough close ela ionships among he s akeholde s in ol ed [40–43].
The amewo k has h ee pa s: s akeholde s in ol ed, a ea o ac ions, and objec i es ela ed
o he demand in he ou ism des ina ion, measu ed in e ms o ype o segmen and he amoun o
income o each. The s akeholde s a e di ided in o wo a eas because he public sec o has speci ic
a ibu ions o ca y ou ac ions ha di e om hose o he p i a e sec o . Figu e 1shows ha
he public and p i a e sec o s sha e he leade ship in des ina ions [
6
,
40
,
43
]. Haugland e al. [
35
]
(p. 269) conside ha “ he success o indi idual ac o s, as well as he success o he en i e des ina ion,
is dependen on e icien coo dina ion and in eg a ion o indi idual companies’ esou ces, p oduc s
and se ice”. In his ega d, Bo nho s e al. [
39
] (p. 572) es ablish ha “compe i i e ad an age equi es
he abili y o e ec i ely manage all componen s o he ou ism sys em o ensu e success is achie ed”,
and many des ina ions c ea e a Des ina ion Managemen O ganiza ion (DMO) o p o ide leade ship
in managing hem. When des ina ions ha e no c ea ed a DMO, he leade ship is no mally ca ied
ou by he public sec o in coo dina ion wi h he p incipal s akeholde s. This is he case o he Cana y
Islands, whe e leade ship in managing he planning and ac ions is p o ided by he di e en public
adminis a ions di ec ly in ol ed (Cana y Go e nmen , Island Go e nmen , and councils).
In his con ex , he s udy o he s a egic e alua ion o a ou ism des ina ion ca ied ou by
Rod íguez-Díaz and Espino-Rod íguez [
2
] showed ha he Public Adminis a ions in ol ed in he
des ina ion o he island o G an Cana ia ha e a low in e nal and ela ional iew. The s akeholde s
e iewed conside ha he di e en go e nmen s (s a e, Cana y, island, council) did no de elop
Sus ainabili y 2018,10, 310 4 o 18
ela ional capabili ies because he e was no collabo a ion o coo dina ion be ween hem. A he
same ime, he low in e nal iew is ela ed o he leade ship capaci y in he des ina ion h ough he
go e nance o in as uc u es, u ban planning, and legisla ion abou he ou ism sec o in o de o
imp o e he compe i i eness o he des ina ion. One o he main conclusions o his s udy was ha
nei he he non-ho el o e no he go e nance o he des ina ion led by he Public Adminis a ion
in eg a ed he co e compe ences o he G an Cana ia des ina ion.
Sus ainabili y 2018, 10, x FOR PEER REVIEW 4 o 18
In his con ex , he s udy o he s a egic e alua ion o a ou ism des ina ion ca ied ou by
Rod íguez-Díaz and Espino-Rod íguez [2] showed ha he Public Adminis a ions in ol ed in he
des ina ion o he island o G an Cana ia ha e a low in e nal and ela ional iew. The s akeholde s
e iewed conside ha he di e en go e nmen s (s a e, Cana y, island, council) did no de elop
ela ional capabili ies because he e was no collabo a ion o coo dina ion be ween hem. A he same
ime, he low in e nal iew is ela ed o he leade ship capaci y in he des ina ion h ough he
go e nance o in as uc u es, u ban planning, and legisla ion abou he ou ism sec o in o de o
imp o e he compe i i eness o he des ina ion. One o he main conclusions o his s udy was ha
nei he he non-ho el o e no he go e nance o he des ina ion led by he Public Adminis a ion
in eg a ed he co e compe ences o he G an Cana ia des ina ion.
Figu e 1. Decision-making and go e nance amewo k o he enewal o ou ism des ina ions.
Leade ship is basically implemen ed h ough he go e nance o in as uc u es, p omo ion o
he des ina ion, and legisla ion wi h special applica ions o u ban planning in ou is a eas [36].
Mo eo e , he di e en public adminis a ions can ake ac ion o suppo in es men in p i a e
eno a ions wi h special inancial sou ces ha can ange om low in e es a es o non- e undable
g an s. Ano he way o help companies is o o e complemen a y gua an ees o bank loans. To he
ex en ha many i ms canno accep he isk o in es ing in lodging eno a ion, he public sec o
helps companies o ge he loans hey need.
The p i a e sec o is composed o lodging companies as he cen al objec o he des ina ion’s
eno a ion. Banks supply inancial esou ces o companies ha need a loan gua an ee. Tou ope a o s
ha e di e en oles in planning lodging eno a ions. On he one hand, hey can gi e loans o lodging
companies o he building o epai s equi ed o he eno a ion o lodging complexes’ ins alla ions.
On he o he hand, ou ope a o s can pa icipa e di ec ly o indi ec ly in he inancial gua an ee o
bank loans, by means o long- ange comme cial ag eemen s wi h he ou ism companies ( i e o en
yea s). These ag eemen s a e usually pledged by he banks o gua an ee he paymen o loans. O he
companies ha can pa icipa e in lodging enewals a e cons uc ion companies, complemen a y
o e s, o se ice companies ha pe o m ce ain ac i i ies such as ca e ing, wellness, spo , and so
on. As Figu e 1 shows, he p i a e sec o also ac s di ec ly in he p omo ion and leade ship o he
des ina ion [43,44].
The inal objec i e o he eno a ion is o imp o e he des ina ion’s image [45] by imp o ing he
image o i s lodgings and in as uc u es [2,46–49]. Image imp o emen is in ended o inc ease he
income om he demand in wo aspec s: i s , by inc easing he numbe o ou is s in he des ina ion;
and second, by modi ying he a ge owa d ma ke segmen s wi h g ea e pu chasing powe . The
Figu e 1. Decision-making and go e nance amewo k o he enewal o ou ism des ina ions.
Leade ship is basically implemen ed h ough he go e nance o in as uc u es, p omo ion o he
des ina ion, and legisla ion wi h special applica ions o u ban planning in ou is a eas [
36
]. Mo eo e ,
he di e en public adminis a ions can ake ac ion o suppo in es men in p i a e eno a ions wi h
special inancial sou ces ha can ange om low in e es a es o non- e undable g an s. Ano he way
o help companies is o o e complemen a y gua an ees o bank loans. To he ex en ha many i ms
canno accep he isk o in es ing in lodging eno a ion, he public sec o helps companies o ge he
loans hey need.
The p i a e sec o is composed o lodging companies as he cen al objec o he des ina ion’s
eno a ion. Banks supply inancial esou ces o companies ha need a loan gua an ee. Tou ope a o s
ha e di e en oles in planning lodging eno a ions. On he one hand, hey can gi e loans o
lodging companies o he building o epai s equi ed o he eno a ion o lodging complexes’
ins alla ions. On he o he hand, ou ope a o s can pa icipa e di ec ly o indi ec ly in he inancial
gua an ee o bank loans, by means o long- ange comme cial ag eemen s wi h he ou ism companies
( i e o en yea s). These ag eemen s a e usually pledged by he banks o gua an ee he paymen
o loans. O he companies ha can pa icipa e in lodging enewals a e cons uc ion companies,
complemen a y o e s, o se ice companies ha pe o m ce ain ac i i ies such as ca e ing, wellness,
spo , and so on. As Figu e 1shows, he p i a e sec o also ac s di ec ly in he p omo ion and leade ship
o he des ina ion [43,44].
The inal objec i e o he eno a ion is o imp o e he des ina ion’s image [
45
] by imp o ing he
image o i s lodgings and in as uc u es [
2
,
46
–
49
]. Image imp o emen is in ended o inc ease he
income om he demand in wo aspec s: i s , by inc easing he numbe o ou is s in he des ina ion;
and second, by modi ying he a ge owa d ma ke segmen s wi h g ea e pu chasing powe . The inal
esul mus be he inc ease in he des ina ion’s income. The p i a e sec o ecei es income om sales
o cus ome s, whe eas he public sec o ea ns income h ough axes.
2.1. Public Sec o
Simancas [
50
] es ablishes ha he ou ism sec o is one o he p i a e business ields whe e
en ep eneu s a e no only in a o o go e nmen al in e en ionism, bu hey demand i . Thus, i is
Sus ainabili y 2018,10, 310 5 o 18
common o public adminis a ions o o mula e a se o policies, plans, p og ams, and p ojec s
ha ocus on he ehabili a ion, ede ini ion, es uc u a ion, and in some cases, ein en ion, o he
ou ism des ina ion. The compe encies o he public adminis a ion a e usually implemen ed h ough
legisla ion p omo ed by he public o p i a e sec o s. In he des ina ion o he Cana y Islands, he i s
legal no m es ablished by he Cana y Go e nmen was passed in 1995 (Ley 7/1995) [51], ma king i s
exclusi e compe ence in he p omo ion and o de ing o ou ism in he Cana y Islands, including he
powe o legisla e in his a ea. I is impo an o highligh ha he u ban planning compe encies in
ou ism zones a e sha ed by he councils and go e nmen s o each o he se en islands. Table 1shows
he ele an aspec s add essed by he di e en laws passed on he Cana y Islands, highligh ing ha
his i s no m (comple ed by Law 5/1999) [
52
] had he main objec i es o egula ing he ou ism
ac i i y, se ing s anda ds o lodging ehabili a ion, de ining he join adminis a ion o complexes
whe e he p ope y is di ided in o mul iple small owne s in o de o imp o e hei compe i i eness,
and con olling o e booking.
Law 6/2001 [
53
] ma ked a change in he o ien a ion o he Cana y Go e nmen because i led o
he con ol and p o ec ion o he ou ism ac i i y. Due o he excessi e inc ease in he numbe o ou is
beds a ha ime, basically in new ho els inaugu a ed o sa is y he new needs o cus ome s, and aking
in o accoun ha he le el o demand in he ollowing yea s would no inc ease much, he Cana y
Go e nmen decided on he “suspension o managemen ins umen s o na u al, e i o ial and u ban
esou ces, as well as hei implemen a ions” (a icle 2 o he ci ed law). I only allows ehabili a ion
p ojec s and he building o new lodgings wi h speci ic high-quali y cha ac e is ics. The opening
s a emen o he law emphasizes he need o con ain he inc ease in he lodging o e while a new law
wi h new guidelines could be w i en.
A new law was passed in 2003 (Ley 19/2003) [
54
] o achie e a model o sus ainable de elopmen
in he Cana y Islands. This law de ines he guidelines o ou ism o ganiza ion in o de o induce
changes in he p oduc ion and managemen me hods o he lodging o e . The main objec i es
we e: (a) he ehabili a ion o exis ing lodgings as a p e e ed al e na i e o hei ex ensi e inc ease;
(b) he inc ease in he lodging o e would be ela ed o imp o ing he alue o he des ina ion and i s
image; and (c) planning would a o he di e si ica ion and di e en ia ion o he ou ism o e , as well
as inc easing he leisu e o e . Howe e , he ehabili a ion o he oldes lodgings con inued o be he
main objec i e; in eali y, he e ec o his law was e y limi ed. A ha ime, he sec o was going
h ough a pe iod o economic s agna ion in which he e enues o companies we e educed. The oldes
lodgings needed inancing esou ces ha hey could no ob ain wi h he expec a ions and means
a ailable o hem. In a p ac ical sense, his law did no de elop he ela ional capabili y be ween public
adminis a ions and he p i a e sec o . On he con a y, he pu pose was o limi he compe ences
o he islands’ go e nmen s and councils in o de o s op he building o new lodgings in he mos
compe i i e and highly demanded cus ome segmen s. Wi h his cons ain , compe i i eness be ween
Islands was con olled, a oiding a d op in p ices.
The nex law was passed in 2009 (Ley 6/2009) [
55
] in he mids o he wo ld economic c isis.
The inc ease in unemploymen and he dec ease in he g oss domes ic p oduc o ced he Cana y
Go e nmen o e hink he planning o he ou ism sec o . The ci cums ances had changed, and he
p io i y was o gi e a boos o he sec o by simpli ying adminis a i e ac ions ela ed o u ban
planning, emo ing unnecessa y equi emen s s a ed in p e ious legisla ions, and acknowledging ha
he p i a e sec o would inc ease i s in ol emen . The Cana y Go e nmen had a dilemma. On he one
hand, i lodging cons uc ion inc eased, he economy would imp o e, bu ou ism p ices would
d op, and companies would u he educe hei e enues. On he o he hand, a s a egy ocusing on
lodging ehabili a ion would a ec bo h he building sec o and he compe i i eness o olde lodgings.
The la e was he op ion selec ed by he Cana y Go e nmen , bu he p ac ical e ec s we e only seen
in he educ ion o he adminis a i e p ocess ollowed in he lodging enewal. Al hough he Cana y
Go e nmen s a ed o de elop a p ima y le el o ela ional capabili y wi h o he adminis a ions
and he p i a e sec o , i con inued o ha e a es ic i e iew o he p oblem and did no no ice

Sus ainabili y 2018,10, 310 6 o 18
ha he ac ions would be mo e in eg a ed i hey included mo e economic ac i i ies. The p ac ical
esul was e y poo because he ehabili a ion p ocess was no adop ed by many lodgings. E iden ly,
he ehabili a ion p oblem was oo complex o be esol ed by a decla a ion o in en in a new law.
In 2012, a adical change occu ed in he pe spec i e on analyzing ou ism des ina ion enewal.
The law passed (Ley 2/2012) [
56
] explici ly ecognizes he need o ca y ou an in-dep h analysis
wi h he b oad pa icipa ion o he sec o s in ol ed and socie y in gene al. The objec i e was o
o mula e an adequa e app oach o o ganizing he main economic ac i i y o he Cana y Islands.
La e , he ou ism eno a ion and mode niza ion laws o he Cana y Islands (Law 2/2013 and
he complemen a y Law 9/2015) [
57
,
58
] we e app o ed. The mos signi ican measu e aken was
he s eng hening o he u ban planning ag eemen among he public adminis a ions in ol ed
(Cana y Go e nmen , Island Go e nmen s, and councils). The p ocess in ol ed he de elopmen o
a consensual p ocedu e o ini ia i es p oposed by owne s o lodgings, and his was he basis o he
“Planes de Mode nización, Mejo a e Inc emen o de la Compe i i idad” (PMMs) (Mode niza ion Plans).
These plans p omo ed an agile p ocess, ins ead o a leng hy planning p ocess, inse ing a new
managemen ool in ou ism u ban planning. A he same ime, he councils in ol ed decided o
educe he capi al gains axes on ehabili a ion p ojec s. Fu he mo e, he councils decided o in es
all he axes ob ained om eno a ion p ojec s in imp o ing ou ism in as uc u es, and his was
complemen ed by public in es men s in he enewal o in as uc u es in he ou ism zones o be
ehabili a ed. The e o e, he ac ions p omo ed in ol ed he de elopmen o a ela ional capabili y
be ween he public adminis a ions and he p i a e sec o because all he s akeholde s coope a ed in
pu suing a common objec i e.
A second impo an measu e was ela ed o inancing enewal p ojec s. The Cana y Go e nmen
ag eed o o e u ban incen i es o ehabili a ion by inc easing he a ios o occupancy and he
buildabili y o he complexes o be eno a ed. The objec i e was o supply a new sou ce o inancing o
ehabili a ion by inc easing he pe cen age o land occupancy allowed, in o de o imp o e o di e si y
he se ices o e ed o cus ome s. Likewise, he new o ien a ion seeks o p o ide he possibili y
o inc easing he numbe o ooms in o de o ob ain addi ional e enues o pay o in es men s
in ehabili a ion.
In his con ex , o he i s ime, he Cana y Go e nmen began o unde s and ha legisla ion mus
supply new inancing me hods o ca y ou a ue enewal o he des ina ion. Howe e , he Cana y
Go e nmen wen u he because i no iced ha he in es men s needed public and p i a e inancing
sou ces. Two main ac ions we e pe o med by he public adminis a ions. The i s was o encou age
public subsidies h ough a join mechanism be ween he Eu opean and Spanish go e nmen s, applied
by he Cana y go e nmen . This subsidy is in eg a ed in he Cana y Island p og am o Regional
Incen i es, and he unds come om Eu ope, wi h he p ojec p o iding a eal imp o emen in he
ca ego y and quali y o se ice deli e y o cus ome s. Small and medium-size companies can achie e
a subsidy o up o 55% o he o al in es men applied o he eno a ion o complexes.
Sus ainabili y 2018,10, 310 7 o 18
Table 1. Legisla ion passed o egula e, ehabili a e, and enew he ou ism ac i i y in he Cana y Islands.
Laws Rele an Aspec s
Law 7/1995, Tou ism O ganiza ion Law in he Cana y
Islands [51]
âFi s gene al egula ion o he sec o .
âP oposes he managemen and p omo ion o he ou ism sec o as a s a egy o he Cana y Islands’ economy.
âConside s he Cana y Islands as a unique ou ism des ina ion.
âRegula es he ou ism o e and es ablishes he s anda d o ca ying ou he ehabili a ions.
âPe o ms he con ol o o e booking in lodgings.
â
S a es he conse a ion needs o he quali y o lodgings h ough main enance p og ams in o de o e ain he ou ism ca ego y.
âDe ends he managemen uni y p inciple o lodgings.
Law 5/1999, which modi ies he Tou ism O ganiza ion
Law in he Cana y Islands [52]
âModi ies he way he owne s and he Company ha e o o malize hei ag eemen .
âCon inues o insis on he quali y o buildings and se ice, es ablishing con ol mechanisms.
Law 6/2001, o U gen Measu es in ma e s o Te i o ial
O ganiza ion and o Tou ism in he Cana y Islands [53]
âI s objec i e is o egula e he egime o he planning and he use o he g ound.
âI a o s he con ainmen o he g ow h o he ou is accommoda ion o e , enhancing hose ac ions ocused on he
ehabili a ion o eplacemen o an obsole e lodging o e , wi hou inc easing i s capaci y.
âOp s o educe he lodging o e by encou aging i s con e sion in o esiden ial o complemen a y o e .
âI also enables excep ional selec i e g ow h o highe ca ego y ho els.
âI limi s he alidi y o obsole e planning ins umen s, licenses and adminis a i e au ho iza ions.
Law 19/2003, abou he Guidelines o he Gene al
O de ing and Guidelines o O ganizing Tou ism in he
Cana y Islands [54]
âI aims o achie e a mo e sus ainable de elopmen model o he Cana y Islands.
âI de ends a model ha con ibu es o he gene a ion o economic weal h.
âI conside s ou ism a i al and dynamic sec o ha canno be condi ioned by a slow and chained p ocess o
successi e adap a ions.
âI a o s he inc ease in quali y and he di e si ica ion o he lodging and complemen a y ou is o e .
âEnables he igu e o he Special Te i o ial Plans o Insula Tou is Planning (Planes Te i o iales Especiales de O denación
Tu ís ica Insula es).
â
I e e s o he eno a ions o he exis ing es ablishmen wi hou an inc ease in capaci y, al hough i allows imp o emen o he
quali y, o expand he o al buildabili y, p oposing se e al al e na i es.
âComp ises he obliga ion o enew, wi hin h ee yea s a e i s app o al, he exis ing buildings.
âI de e mines he possibili y o es ablishing mo e e ec i e measu es o economic, iscal, labo and adminis a i e incen i e.
Law 6/2009, o U gen Measu es in ma e s o Te i o ial
O de ing o he S imula ion o he Sec o and he
O ganiza ion o Tou ism [55]
âI is app o ed in he middle o he economic c isis.
â
I ies o gi e impe us o he ou ism sec o , add essing, among o he hings, he need o simpli y and a ionalize adminis a i e
p ocesses in e i o ial and u ban planning.
âI main ains he so-called ou is mo a o ium, al hough i elaxes he eclassi ica ion o land unde ce ain condi ions.
âIn ligh o he conce n ha he p ocess o eno a ion and ehabili a ion o he lodging o e had no achie ed enough suppo .
The e is an a emp o s imula e enewal and imp o e ou ism in as uc u es and lodgings h ough conce ed ac ions be ween
he public and p i a e sec o s.
Law 2/2012, empo al ex ension o Law 6/2009 [56]
â
An in-dep h analysis is p oposed, coun ing on a b oad pa icipa ion o he sec o s a ec ed and he ci izens, in gene al, o de ine
wha he app op ia e p oposal would be o o ganizing he main economic ac i i y o he Cana y Islands.
Sus ainabili y 2018,10, 310 8 o 18
Table 1. Con .
Laws Rele an Aspec s
Law 2/2013, on Tou ism Reno a ion and Mode niza ion
o he Cana y Islands [57]
âI adop s he legisla i e echnique o con igu ing and ecas ing in a single ex all he p e ious legisla ion on his ma e .
âI guides he ac ions owa ds he same s a egy o inc ease he quali y o he Cana y Islands as a ou is des ina ion.
â
I aims o achie e g ea e compe i i eness in he p oduc s o e ed and o posi ion he Islands in a line o esponsible, economic,
en i onmen al, and socially sus ainable ou ism, in addi ion o ensu ing sa is ac o y public se ices.
âI aims o edi ec he esiden ial na u e o ou is lodgings.
â
I allows cons uc ion on lands ha ha e consolida ed u ban igh s, h ough ex ending he igh s o addi ional places g an ed as
incen i es o eno a ion, o h ough he implemen a ion o high quali y ho els.
âEs ablishes he du y o lodgings and ou is ac i i ies o main ain, conse e, and ehabili a e he buildings and acili ies in
acco dance wi h he p o isions o ou is egula ions and planning.
â
S eng hens he u ban ag eemen s, as a consensual p ocedu e o he ini ia i es p oposed by he owne s o he es ablishmen s,
and a o s he app o al o he Mode niza ion, Imp o emen and Inc easing Compe i i eness Plans (PMMs).
âI es ablishes he c ea ion in each Island Go e nmen o a “Tou is egis y o accommoda ions”.
Law 9/2015, o co ec , among o he s, Law 2/2013 [58]
â
I aims o co ec di e en issues and/o p oblems, shown in he E alua ion Repo o he Law 2/2013 o Tou ism Renewal and
Mode niza ion o he Cana y Islands, which compa ed he p og ess o he new measu es and hei impac on he ou ism sec o .
Sus ainabili y 2018,10, 310 9 o 18
The o he inancing sou ce is a icula ed h ough he Eu opean In es men Bank (EIB),
which o e s loans by subsidizing pa o he in e es . The Cana y Go e nmen has p omo ed he
concession o hese ypes o loans h ough p i a e inancial en i ies. Ano he cha ac e is ic o hese
Eu opean loans is he inclusion o a public gua an ee o all o pa o he c edi gi en by p i a e
banks o ou ism companies. In conclusion, combined and in eg a ed ac ions led by he public
adminis a ion o enew he lodging o e a e he only way o achie e p ac ical esul s. This means ha
he de elopmen o ela ional capabili ies is he pa h o he success ul ehabili a ion o des ina ions.
When he Cana y go e nmen inally unde s ood ha legisla ion is no su icien o ca y ou
ehabili a ion p ojec s because hey a e complex and ha e di e en s akeholde s, ehabili a ion s a ed
o be a success ul eali y. When he Cana y go e nmen applied ac ions in all he ela ed aspec s,
he esul s began o appea . In his con ex , he public adminis a ions, ou ism sec o , inancial sec o ,
and o he companies, such as ou ope a o s, building and se ice companies, and complemen a y
o e s, we e in ol ed. Likewise, he Cana y go e nmen in ensi ied public in es men s in imp o ing
ou ism in as uc u es and p omo ed campaigns o imp o e he he des ina ion’s image. This special
legisla ion was only applied o a limi pe iod o ime, and cu en ly he common adminis a i e
u ban planning p ocess is applied wi h se e e consequences. The legal bu eauc acy keeps enewal o
inno a i e ou ism p ojec s om being ca ied ou because, in many cases, u ban planning in ou is
owns can ake mo e han 10 yea s.
2.2. P i a e Sec o
The Cana y Islands is a ou ism des ina ion wi h a high demand, ecei ing mo e han i een
million ou is s pe yea , wi h an a e age occupancy o 9.75 nigh s pe clien in non-ho els and
8.39 nigh s in ho els pe clien [
59
]. I is a des ina ion ocused basically on sun and beach ou ism,
bu i is di e si ying i s o e in o he segmen s (spo , gol , u al ou ism, cul u al). This des ina ion has
1168 lodging non-ho els ha ep esen abou 22% o he o al o e in Spain in his ca ego y (see Table 2).
The island wi h he la ges numbe o non-ho el complexes is G an Cana ia, wi h 435, ollowed by
Lanza o e (190), Tene i e (188), and La Gome a (159). Wi h ega d o he ho el o e , he island wi h
he g ea es numbe o lodgings is Tene i e (234), whe eas G an Cana ia has 154, Fue e en u a 84,
and Lanza o e 72.
Table 2. Numbe o lodgings in he Cana y Islands by island in 2016 [60].
Ca ego ies Islands Ho els Non-Ho els To al
Numbe % Numbe % Numbe %
Lanza o e 72 27.48% 190 72.52% 262 14.70%
Fue e en u a 84 51.85% 78 48.15% 162 9.09%
G an Cana ia 154 26.15% 435 73.85% 589 33.05%
Tene i e 234 55.45% 188 44.55% 422 23.68%
La Gome a 30 15.87% 159 84.13% 189 10.61%
La Palma 27 21.60% 98 78.40% 125 7.01%
El Hie o 13 39.39% 20 60.61% 33 1.85%
To al 614 34.46% 1168 65.54% 1782
100.00%
Taking in o accoun he s uc u e o he lodging o e by island, Table 2shows ha G an Cana ia
and Lanza o e ha e mo e non-ho els (73.85% and 72.52%, espec i ely) han ho els (26.15% and 27.48%,
espec i ely. Mo eo e , he islands o Tene i e and Fue e en u a ha e a mo e balanced s uc u e
because ho els ep esen 55.45% and 51.85%, espec i ely, and he pe cen age o non-ho els is 44.55%
and 48.15%, espec i ely.
Table 3shows ha he e we e 427,354 ou is beds in he des ina ion in 2016. Analyzing he
numbe o beds by island, he g ea es numbe is in G an Cana ia island (140,956), ollowed by Tene i e
(136,269). Ano he impo an cha ac e is ic o he des ina ion is ha he pe cen age o non-ho els and
ho els is simila (50%) because in he ini ial s age, he non-ho el o e was mo e impo an han he
Sus ainabili y 2018,10, 310 16 o 18
and image. I is e y impo an o ecognize ha he in es men s ca ied ou in in as uc u es ha e
ep esen ed p ac ical and angible ac ions.
The e o e, when Rod íguez-Díaz and Espino-Rod íguez [
2
] e alua ed he in e nal and ela ional
iew o he public adminis a ions in he G an Cana ia des ina ion, hey demons a ed ha he
s akeholde s conside ed had he lowes sco es. These au ho s poin ed ou ha i was impo an o
he leade ship o he des ina ion, he public adminis a ions, o s a o collabo a e wi h each o he
in ehabili a ing and inc easing he compe i i eness o he des ina ions. Today, i has been shown
ha he only ac ions ha ha e been success ul in he Cana y Islands ha e been ca ied ou in he
de elopmen o ela ional capabili ies among he di e en public adminis a ions in ol ed, as well as
he c ea ion o a close ela ionship be ween he public and p i a e sec o s. Fu u e esea ch should
examine he possibili y o eapplying hese ini ia i es, bu as an in eg a ed whole, wi h he possibili y
o simpli ying he bu eauc a ic p ocess o u ban planning and he concession o council building
licenses, hus inc easing he numbe o ou ism i ms in e es ed in eno a ion. Mo eo e , i would be
e y in e es ing o con i m he need o de elop ela ional capabili ies o ca y ou enewal p og ams
in o he des ina ions, aking in o accoun he di e en ypes o ac ions p oposed in he amewo k
p esen ed in his s udy.
Au ho Con ibu ions:
The au ho s ha e con ibu ed equally in he esea ch design and de elopmen ,
he da a analysis and he w i ing o he pape . The au ho s ha e ead and app o ed he inal manusc ip .
Con lic s o In e es : The au ho s decla e no con lic o in e es .
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