For decades, the Canary Islands have been a favorite destination for German retirees, especially during the winter months, seeking warm weather. However, the announcement of a cut in German public spending, aiming to transform pensions into a “basic coverage,” could diminish the economic capacity of these travelers.

German tourists over 65 years old account for approximately 25% of visitors from this market, which is the second most important for the archipelago. This measure could affect 684,000 of the 2.8 million German tourists who visited the islands last year, representing 4% of all international visitors.

Although 4% may seem limited, the impact is significant, given that German tourists have longer average stays (10.9 days in 2025, according to the Canarian Institute of Statistics - Istac) and are second in total spending volume. The restructuring of the benefits system not only cuts pensions but also eliminates medical services and increases contributions to Social Security, further reducing purchasing power.

The concern in the Canary Islands is palpable, as these measures, aimed at cutting 40 billion euros in public spending for defense investment, could be emulated by other European countries. The decrease in Europeans' purchasing power, coupled with the threat of inflation due to the conflict in the Middle East, creates uncertainty in a sector heavily reliant on tourist spending.

The dependence on German tourism varies among the islands. In Fuerteventura, they represent almost 30% of visitors, while in Gran Canaria, they reach 18%. In La Palma and La Gomera, this segment is the most important. In Tenerife, they account for 11%, and in Lanzarote, 7%. Although a total collapse of the market is not expected, the effects could be progressive, leading to a reduction in travel frequency, shorter stays, or the choice of more economical accommodations, which would negatively impact the sector.