Islands in the Sun

While one of the main attractions for tourists and property purchasers to and in Tenerife is the consistently delightful climate; occasionally residents aren't quite as blasé. Just now for instance we are living with a calima: an extremely warm, dead, almost breezeless, atmosphere. This calima, that apparently originates in the deserts of the neighbourng continent appears to be dust laden and leaves both natives and tourists alike in a dehydrated state of semi permanent fatigue. The calima lasts generally about two days.

Lookin out now as I write this, there is brilliant sunshine and a clear view to the mountains and indeed Mount Teide at 3700M is visible.

However, this mild occasional discomfort is more than comensated for by an otherwise magical climate.

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Spain & Morocco, Strait Tunnel

Possibly the next world scale civil engineering project will be the construction of the above. We have indicated in an earlier blog that Europe and the world generally, in its own interests, needs to help the states of Africa develop their economies.
One of the steps with this end in view could well be the construction of the above - probably a 20 year project. Current plan envisages a 39K tunnel linking the area of Tangiers to a spot in Spain near Tarifa. Approximately 28K would be under the ocean. Because of the instability of the ocean floor it is envisaged that this project would be much more difficult than the Channel Tunnel. However, Spain and Morocco appear to have reached agreement in principal.
Imagine the implications of being able to board a train in say Glascow and arrive in Capetown. What would be the implications for the Canary Islands and Tenerife?
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It's the Economy Stupid!

During Bill Clinton's election campaigns this was his catch cry. It's the economy stupid! Certainly it appears that, during his many travails in office including a dramatic, sustained effort to have him impeached the, then, strong US economy held him safe.
There is another bitter election campaign being fought out just now in the US and it is likely that the US and indeed world economies wont settle down until this election is determined.
Both the Bank of England and Federal Feserve are toying with the idea of reducing base interest rates yet again. Such decisions are always a play off between economic stimulation and inflation control.
Whatever. People have to continue buying and selling. Vendors have to remember that, if they are buying as well as selling, their relative position is unchanged regardless of the economic cycle. They cannot expect to get 'boom' prices for their existing homes and purchase their new homes at 'bargain basement' prices. This basic common sense, if understood, will keep the market moving in a healthy way and the earlier property people take this fundamental reality on board the better for everybody.
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Spanish Economy 2008

Spain, of most of the major world economies has been least affected by the US generated sub prime - hipotecas basura - lending crisis. While, in the normal cyclical process, the ecomomy has de-accelerated slightly heading into 2008 the banks have had substantial profit increases for 2007 and forwards:

• Banco Popular: 22.8% profit increase.


• BBVA: 29.4% profit increase.


• Banco Santander: 19.3% profit increase.

This trend was reflected in some of the major commercial groups:

• Telefonica 43% profit increase.


• Iberia 300% profit increase.


• Union Fenosa 55.2% profit increase.

Hence Spain remains a very stable, soundly based, economy and, together with its islands remains a very attractive destination for investment funds. The Canary Islands particularly, due to their unique climatic and investment tax regime advantages, remain primus inter pares in any international context..

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Spain news snippets

Train to South
The Tenerife Government (Cabildo) has again provisionally approved the proposed route of the train that will travel from Santa Cruz through the Reina Sofia Airport to Torviscas Alto, inland from Fañabé. Relevant information may be had from visiting www.tenerife.es/planes.

LRAU/Land Grab Law
EU members have held a two day meeting to discuss the growing concern about the use and abuse of this law. This has led to demolition of homes in Valencia particularly, Murcia and Andalucia. Purchasers were originally advised that their homes were totally legal but, apparently because of a combination of corruption and a new interpretation of this law, many people who bought in good faith are facing ruin.
MEPs have called for an immediate moratorium on demolitions so...we'll see. Spain cannot dine a la carte at the table of Europe.
It highlights once again the fundamental advice for potential purchasers. Let the buyer beware. Caveat emptor. Seek professional advice from qualified people such as APIs.
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Tenerife : General news snippets

The weather on the 2nd April 2008 is typically beautiful here in Tenerife. While this is a low period in the tourist cycle the beaches are still crowded as are most of the bars and restaurants. This is a time of year when we welcome the more mature tourist, including retirees, many of whom already own property in this magical Isle of tenerife.
One blot 'literally' on the landscape is that there has been a strike by the waste removal contractors in Adeje for some weeks now. Rubbish is piling up and, apart from being unsightly and smelly, it will soon begin to attract rodents and all other types of vermin.

Let's hope that the problem is resolved quickly as this situation is neither pleasant for residents nor tourists and certainly doesn't help the otherwise magnificent image of Tenerife.

Ten years ago when people thought of Tenerife they thought of Los Cristianos and Las Americas. Now, apart from places like Puerto de la Cruz, both tourists and tour operators think in terms of a 50Km strip extending from El Médano through Las Americas to Los Gigantes.
Many of these areas are totally self contained including El Médano, Los Abrigos, Gold del Sur and Amarilla Golf, Las Galletas, La Caleta, Playa Paraiso, Callao Salvaje, Playa San Juan and Alcala right through to and including Los Gigantes.
So, when people talk of wanting to be in the centre, there are now several centres!!
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