Destination Information

Economy

The current economy of the Canary Islands is mainly based on tourism, which accounts for up to 80% of the islands' gross income. This development favours a climate that is attractive all year round, attracting millions of tourists throughout the year. In addition, the inhabitants of the Canary Islands also live from agricultural exports - including, but only to a small extent, from the banana industry. The port of Las Palmas is also of central importance in the Mid-Atlantic. In the first centuries after the Spanish conquest, the mainstays of the Canary Islands' economy were the sugar industry and viticulture. However, sugar production declined towards the middle of the 16th century due to strong competition from cheaper-producing countries. The boom in wine-growing was in the 16th century and declined at the beginning of the 18th century. This was followed by a cochineal boom from 1830 to 1870 (cochineal louse, from which a red dye is produced). However, due to the development of synthetic dyes, this lasted only for a short time. Around 1850, the industrial cultivation of bananas began on the islands and eventually became the most important export product. The competition with bananas from Central American countries was hopeless, as the Canary bananas did not meet the European standard in terms of size (too small). Although bananas are protected against foreign products on the Spanish market, cultivation has become unprofitable. From the beginning of the 20th century, people started to grow tomatoes, potatoes and other vegetables. Tomatoes are mainly grown on a large scale for export. In recent years, the cultivation of cut flowers (e.g. strelitzia) and plants for export has also developed positively. Cereals have to be imported.