Modernization Plans under the law 2/2013 May, the 29th, on Tourism Renewal and Modernization of the Canary Islands. Requalification as an increment factor of competitiveness: the case of Santa Monica Suites Hotel

Abstract

The preamble of Law 2/2013, May the 29th, on Tourism Renewal and Modernization of the Canary Islands, established, as starting point, the necessary complicity of all stakeholders involved in the tourism sector to face the new challenges in the next years for the destination Canary Islands. And this strategy should be based on the correct structuring of the tourist offer, the continuous product improvement and the development of an appropriate external promotion strategy.One of the key issues detected in the different reports, plans and studies elaborated refers to the obsolescence in accommodation facilities (and other tourist services) in San Bartolomé de Tirajana. Currently around 85% of existing buildings are more than a 20 years age (2013 data) and the different actions of conservation and maintenance carried out in their structures, are insufficient to allow maintaining the minimum levels of competitiveness required in a dynamic market as tourism.Santa Mónica Apartments (currently Santa Mónica Suites Hotel), joined the Maspalomas Costa Canaria Improvement and Modernization Plan, through a rehabilitation project and adaptation to quality standards, in order to convert an 1 key apartment building in a 4 stars hotel.After remodelling works, establishment reached the superior 4 stars hotel category. So the staff increased to 86, of which 80% is permanent and 20% is temporary. Currently the wage bill is approximately the 23% of the gross production. The hotel has currently 182 rooms, all of them Junior Suites (45 m2), of which 113 are sea and dunes views, 39 rooms gardens views and 30 of them on the ground floor with a terrace. In total 364 places are available.In the same way, prices has changed to reach 186 € per night in low season and 220 € per night in high season. There is a significant modification in marketing channels too; currently 75% sales are through TT.OO and 25% through direct selling in low season and in high season 82% are through TT.OO. and 18% are through direct selling. Maybe the most relevant data refers to the increase in production multiplied in 300% and the yield has reached approximately 45%.