The tourism authorities in Tenerife are quietly optimistic that in 2008 we should at least equal the number of tourists for 2007 i,e 5.200.000. Hence there is some reason for reiterating that the crisis that is confronting us every day in the media is more psychological than real.
The 'Hoteleros' complain about illegal competition from the private rental market and from the smaller hotels that are nor fully authorized for tourism.
Tenerife enjoyed 2.616.454 tourists for the first half of 2008.
Let's not talk ourselves into a crisis. Tenerife remains one of the better and safer places in the world either to live, work and invest in or to enjoy a few weeks vacations.
info@pci-international.com
Thursday, July 31, 2008
Friday, July 18, 2008
Siam Park Update
The Park looks just about ready to roll now and it may be worthwhile to monitor their site that is now being regularly updated.
It will certainly bring a new dimension to Tenerife that will host at least as many tourists as last year.
http://www.siampark.net
It will certainly bring a new dimension to Tenerife that will host at least as many tourists as last year.
http://www.siampark.net
Wednesday, July 16, 2008
Tenerife : General news snippets
House prices in Tenerife
It may surprise a lot of people that houseprices in the Canary Islands have increased by 2,8% on an annual basis up to 30/06/08. This accords with informatioin provided yesterday by the government.
The Euro
This was always an economic concept driven politically on the grounds that one size fits all. Now, countries like Ireland need to inflate their economies either by increasing borrowing or printing more money. Under the regime of the Euro they can do neither. So euro governments are left without any macroeconomic controls. Menwhile Ireland has to cut health spending while, as a net contributor to EU, our taxes go to subsidise Rumanian farmers. By contrast both the UK and the US being non Euro countries allow their curencies to fall reflecting internal purchasing power. That is logical.
Ireland is not unique in this sense. Should we think the unthinkable and consider dropping the Euro?
It may surprise a lot of people that houseprices in the Canary Islands have increased by 2,8% on an annual basis up to 30/06/08. This accords with informatioin provided yesterday by the government.
The Euro
This was always an economic concept driven politically on the grounds that one size fits all. Now, countries like Ireland need to inflate their economies either by increasing borrowing or printing more money. Under the regime of the Euro they can do neither. So euro governments are left without any macroeconomic controls. Menwhile Ireland has to cut health spending while, as a net contributor to EU, our taxes go to subsidise Rumanian farmers. By contrast both the UK and the US being non Euro countries allow their curencies to fall reflecting internal purchasing power. That is logical.
Ireland is not unique in this sense. Should we think the unthinkable and consider dropping the Euro?
Tuesday, July 15, 2008
Tenerife: Traffic and other problems
Some problem areas and how may we resolve them!
Traffic:
History has demonstrated very clearly that merely building more roads does not solve the problem. Indeed it tends to exacerbate it. Apart from using huge chunks of a limited stock of land the construction of more and faster roads merely attracts more traffic. Public spending is generally very welcome by the electorate and is obviously hugely pleasurable for the politicians. Indeed politicians everywhere become quite orgasmic when they have ‘loads of money’ to spend! However there is another side to the coin. That is to reduce the level of traffic. This may be accomplished in a number of ways:
• The obvious, if not the least painful, solution is to reduce the number of vehicles. This at the end of day means higher taxes on vehicles, on road usage and or on fuel. Clearly, as an alternative to private transport, there must be an efficient system of public transport. Nobody wants to pay higher taxes but it’s a question of balance and the common good!
• Decentralisation of services and centres of employment could reduce the number of journeys and alleviate congestion! Does Tráfico and La Oficina de la Extranjeria have to be in Santa Cruz? Why do all driving tests have to be undertaken in Santa Cruz?
• Instead of constructing more and more ‘traffic attracting’ roads in order to bring workers to the centres of employment, would it not be immensely more sensible both economically and socially to bring the jobs to the workforce? Why not, for instance, designate one million square meters of land in the Santiago del Teide\Buenavista del Norte zone as a ZEC (area)?
Is it practical for the Ayuntamientos in the south to object to the location of large stores such as El Corte Inglés or IKEA on grounds of protecting the PYMEs? Apart from the fact that it is like trying to stop the tide, the only way for the PYMEs to survive in the long term is to specialise in a product service mix with which the grand stores would be unwilling or unable to compete. Rather than being a general sports shop for instance why not specialise in one activity such as cycling, athletics or aquatic sports? The reality is that the consumer will, and does, drive from the South to Al Campo and Carrefour thus creating more traffic congestion and with no less adverse an impact on the PYMEs. Tourists from overseas also generally like to visit the destination, household name, retail stores without having to invest a day of their all too short holiday in congested travel.
Police:
There is a perception on the streets that there may be ‘one law for the locals and another for the foreigners’, whether such foreigners are residents or tourists. This is a perception typical of most countries by outsiders. From a marketing viewpoint perception is as important as reality. There may be a need for a better PR function at the police end. Many people believe that the police are far too eager to tow away cars for minor parking offences. Is it traffic control or income generation? Apart from the cost and stress involved for non Spanish-speaking tourists, they lose a day of their holiday. Does this encourage repeat visits? Perhaps a multi language warning or advice leaflet could be placed under their wipers for less grave offences especially where neither a traffic hazard nor an obstacle is created.
Furthermore, many foreigners are not accustomed to ‘gun toting’ police, wearing black glasses. They find it somewhat intimidating. Should all members of such security forces wear clearly legible identification numbers? Why shouldn’t members of the police be clearly identifiable? These are all perceived problem areas that would be relatively cost free to resolve thus making our island more tourist-friendly. After all, the police are on our front line of public relations as are the taxis, tourist guides and the estate agents. It is clear that those employed in these sectors should be fully aware of the importance of their role and trained on a continuous process to maintain the highest possible standards both of performance and integrity.
Perhaps our visitors do not consider that Tenerife is quiet as friendly (amable) as we would like to think. Our youth, particularly those engaged in the ‘office’ sector, do not always appear to be imbued with either a work or service ethic. They seem to be, as employees, particularly if the employers are foreign, very conscious of their rights but not at all conscious of their obligations. The words of John F. Kennedy may be worth quoting “Ask not what your country can do for you. Rather ask what you can do for your country?” Rights and obligations are merely the two side of the same coin. You cannot have one without the other. Nor can we as a state(let) dine a la carte at the table of Europe. If, on the one hand, we accept, nay, demand as our right vast amounts of structural funds from Brussels we cannot then for example start bleating about restricting the rights of fellow EU citizens to live and work here in Tenerife and share equally our rights and obligations.
www.pci-international.com
Traffic:
History has demonstrated very clearly that merely building more roads does not solve the problem. Indeed it tends to exacerbate it. Apart from using huge chunks of a limited stock of land the construction of more and faster roads merely attracts more traffic. Public spending is generally very welcome by the electorate and is obviously hugely pleasurable for the politicians. Indeed politicians everywhere become quite orgasmic when they have ‘loads of money’ to spend! However there is another side to the coin. That is to reduce the level of traffic. This may be accomplished in a number of ways:
• The obvious, if not the least painful, solution is to reduce the number of vehicles. This at the end of day means higher taxes on vehicles, on road usage and or on fuel. Clearly, as an alternative to private transport, there must be an efficient system of public transport. Nobody wants to pay higher taxes but it’s a question of balance and the common good!
• Decentralisation of services and centres of employment could reduce the number of journeys and alleviate congestion! Does Tráfico and La Oficina de la Extranjeria have to be in Santa Cruz? Why do all driving tests have to be undertaken in Santa Cruz?
• Instead of constructing more and more ‘traffic attracting’ roads in order to bring workers to the centres of employment, would it not be immensely more sensible both economically and socially to bring the jobs to the workforce? Why not, for instance, designate one million square meters of land in the Santiago del Teide\Buenavista del Norte zone as a ZEC (area)?
Is it practical for the Ayuntamientos in the south to object to the location of large stores such as El Corte Inglés or IKEA on grounds of protecting the PYMEs? Apart from the fact that it is like trying to stop the tide, the only way for the PYMEs to survive in the long term is to specialise in a product service mix with which the grand stores would be unwilling or unable to compete. Rather than being a general sports shop for instance why not specialise in one activity such as cycling, athletics or aquatic sports? The reality is that the consumer will, and does, drive from the South to Al Campo and Carrefour thus creating more traffic congestion and with no less adverse an impact on the PYMEs. Tourists from overseas also generally like to visit the destination, household name, retail stores without having to invest a day of their all too short holiday in congested travel.
Police:
There is a perception on the streets that there may be ‘one law for the locals and another for the foreigners’, whether such foreigners are residents or tourists. This is a perception typical of most countries by outsiders. From a marketing viewpoint perception is as important as reality. There may be a need for a better PR function at the police end. Many people believe that the police are far too eager to tow away cars for minor parking offences. Is it traffic control or income generation? Apart from the cost and stress involved for non Spanish-speaking tourists, they lose a day of their holiday. Does this encourage repeat visits? Perhaps a multi language warning or advice leaflet could be placed under their wipers for less grave offences especially where neither a traffic hazard nor an obstacle is created.
Furthermore, many foreigners are not accustomed to ‘gun toting’ police, wearing black glasses. They find it somewhat intimidating. Should all members of such security forces wear clearly legible identification numbers? Why shouldn’t members of the police be clearly identifiable? These are all perceived problem areas that would be relatively cost free to resolve thus making our island more tourist-friendly. After all, the police are on our front line of public relations as are the taxis, tourist guides and the estate agents. It is clear that those employed in these sectors should be fully aware of the importance of their role and trained on a continuous process to maintain the highest possible standards both of performance and integrity.
Perhaps our visitors do not consider that Tenerife is quiet as friendly (amable) as we would like to think. Our youth, particularly those engaged in the ‘office’ sector, do not always appear to be imbued with either a work or service ethic. They seem to be, as employees, particularly if the employers are foreign, very conscious of their rights but not at all conscious of their obligations. The words of John F. Kennedy may be worth quoting “Ask not what your country can do for you. Rather ask what you can do for your country?” Rights and obligations are merely the two side of the same coin. You cannot have one without the other. Nor can we as a state(let) dine a la carte at the table of Europe. If, on the one hand, we accept, nay, demand as our right vast amounts of structural funds from Brussels we cannot then for example start bleating about restricting the rights of fellow EU citizens to live and work here in Tenerife and share equally our rights and obligations.
www.pci-international.com
Thursday, July 3, 2008
Spain: Foreign Investment 2007
People may be astonished to note that foreigners invested more than €5bn in Spain during 2007 almost 25% more than in 2006.
This is certainly a strong vote of confidence in the Spanish economy. These figures were released by Banco de España
info@pci-international.com
This is certainly a strong vote of confidence in the Spanish economy. These figures were released by Banco de España
info@pci-international.com
Wednesday, July 2, 2008
Stockbrokers. Do we need them?
The ‘poor stockbroker’!
A review of the Irish and UK stock market June 08. Compliments of P Murray.
Perhaps we should feel sorry for the ‘poor’ stockbroker – maybe we should put them on suicide watch – what other profession has written so many guidelines, recommendations and briefings that have been so spectacularly wrong over the past 12 months.
A doctor would be struck off, a banker fired, an estate agent bankrupt but such is their resilience that they continue unashamed and unabashed to write more briefing notes even as we speak.
Amazingly there are no anecdotal tales of stockbrokers going bust - how can this be? – do they do not read or act on their own notes?!
But just like the property market or the decline of the dollar, their demise, although slow, is in the very seeds they are sowing. Through their encouragement of market volatility through various devises including my pet hate - short selling- the market they represent is disappearing before their eyes. The hen that laid so many eggs is being eaten for a short term gain.
The credibility of the stock market as an efficient medium of capital is melting before our very eyes. Why should a Bank stock vary by 6% in a day or a food company vary by 5%? There is no information in the market that would suggest an adjustment to value. We have dozens of accountants and internal auditors within these companies worried over pennies – and rightly so – but why should they bother when brokers are moving the value of their companies tens or hundred millions. There is a total disconnect between the business and the shareholder.
Anecdotally the smart money has left the stock exchange years ago and is mostly invested in private equity funds. So are only the idiots left investing in the stock market?
It gives us no comfort that we are not alone. We cannot see the woods for the ‘hedges’.
We are surrounded by hedge funds. The classical theory is that they add liquidity to the market. My response is bull. I have a simpler economic theory – it is called a zero sum game – if hedge funds are making billions due to their activity in the stock market then it is at someone’s expense – yes indeed – yours and mine.
And keeping with my zero sum game theory if you keep draining a reservoir eventually it goes dry – and what we are watching is the collapse of capitalism as we know it. Well managed and funded companies are trading of multiples of three and four. The stock market is making a laughing stock of business. The solution has to be to take them private – which they would if the banking system was not currently dysfunctional and suffering from the same stock market constraints.
Looking further ahead – say 10 years – and it may even be closer – perhaps 5 years – the issues will be air, water food and energy. Interestingly many of the companies in this area are not listed. In twenty years time people will ask about the stock market and we will point them to where the Natural History Museum will house historic stock market reports – now collectors items – and the blenched white bones of investors who kept marching across the desert - ever hopeful.
info@pci-international.com
A review of the Irish and UK stock market June 08. Compliments of P Murray.
Perhaps we should feel sorry for the ‘poor’ stockbroker – maybe we should put them on suicide watch – what other profession has written so many guidelines, recommendations and briefings that have been so spectacularly wrong over the past 12 months.
A doctor would be struck off, a banker fired, an estate agent bankrupt but such is their resilience that they continue unashamed and unabashed to write more briefing notes even as we speak.
Amazingly there are no anecdotal tales of stockbrokers going bust - how can this be? – do they do not read or act on their own notes?!
But just like the property market or the decline of the dollar, their demise, although slow, is in the very seeds they are sowing. Through their encouragement of market volatility through various devises including my pet hate - short selling- the market they represent is disappearing before their eyes. The hen that laid so many eggs is being eaten for a short term gain.
The credibility of the stock market as an efficient medium of capital is melting before our very eyes. Why should a Bank stock vary by 6% in a day or a food company vary by 5%? There is no information in the market that would suggest an adjustment to value. We have dozens of accountants and internal auditors within these companies worried over pennies – and rightly so – but why should they bother when brokers are moving the value of their companies tens or hundred millions. There is a total disconnect between the business and the shareholder.
Anecdotally the smart money has left the stock exchange years ago and is mostly invested in private equity funds. So are only the idiots left investing in the stock market?
It gives us no comfort that we are not alone. We cannot see the woods for the ‘hedges’.
We are surrounded by hedge funds. The classical theory is that they add liquidity to the market. My response is bull. I have a simpler economic theory – it is called a zero sum game – if hedge funds are making billions due to their activity in the stock market then it is at someone’s expense – yes indeed – yours and mine.
And keeping with my zero sum game theory if you keep draining a reservoir eventually it goes dry – and what we are watching is the collapse of capitalism as we know it. Well managed and funded companies are trading of multiples of three and four. The stock market is making a laughing stock of business. The solution has to be to take them private – which they would if the banking system was not currently dysfunctional and suffering from the same stock market constraints.
Looking further ahead – say 10 years – and it may even be closer – perhaps 5 years – the issues will be air, water food and energy. Interestingly many of the companies in this area are not listed. In twenty years time people will ask about the stock market and we will point them to where the Natural History Museum will house historic stock market reports – now collectors items – and the blenched white bones of investors who kept marching across the desert - ever hopeful.
info@pci-international.com
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