Economy & Industries
The main bulk of the Canarian economy centres on the tourism industry, accounting for up to 80 per cent of the gross income of the archipelago. With one of the most favourable climates of the world, the Canary Islands attract millions of tourists every year. Besides that, locals rely on the banana industry, other agricultural exports and new tourism-related service industries to make a living.
In the centuries following the Spanish conquest, the mainstays of the Canarian economy were the sugar and winemaking industries. Sugar production on the islands started right after the conquest with sugar-cane imported from Madeira, but it declined in the middle of the 16th century due to the strong competition from Brazil and the Caribbean, which could produce cheaper. The vinification industry, which enjoyed its peak during the 16th century, collapsed at the beginning of the 18th century due to a locust plague and mildew attacks, which destroyed the vineyards. It’s since been revived, however, with the wines of Gran Canaria, Lanzarote, La Palma and Tenerife proving increasingly popular.
From about 1830 to 1870 as the demand for carmine food dye grew, cochineal production boomed throughout the islands - promising a better future also to the poorer population. Yet this dream did not last very long, with the development of synthetic dyes causing a considerable decrease of the cochineal industry
The archipelago’s economy was saved, however, around 1850 with the introduction of the industrial cultivation of bananas to the islands. It gradually gained in importance and became the islands’ main export product, reaching its peak in the beginning of the 20th century. Yet again, strong competition with foreign exports, this time from Latin American countries, made survival on the monoculture of bananas hopeless and local farmers were forced to diversify by cultivating tomatoes, potatoes, other vegetables and exotic fruits.
Nowadays bananas are protected on the Spanish market against foreign suppliers, but their cultivation has become uneconomic due to higher costs and water shortage. Tomatoes are grown on a large scale mainly for exports between November and April. In recent years the cultivation of flowers and plants for export has also developed into a flourishing industry. Yet, cereals must be imported to a large extent.
In the centuries following the Spanish conquest, the mainstays of the Canarian economy were the sugar and winemaking industries. Sugar production on the islands started right after the conquest with sugar-cane imported from Madeira, but it declined in the middle of the 16th century due to the strong competition from Brazil and the Caribbean, which could produce cheaper. The vinification industry, which enjoyed its peak during the 16th century, collapsed at the beginning of the 18th century due to a locust plague and mildew attacks, which destroyed the vineyards. It’s since been revived, however, with the wines of Gran Canaria, Lanzarote, La Palma and Tenerife proving increasingly popular.
From about 1830 to 1870 as the demand for carmine food dye grew, cochineal production boomed throughout the islands - promising a better future also to the poorer population. Yet this dream did not last very long, with the development of synthetic dyes causing a considerable decrease of the cochineal industry
The archipelago’s economy was saved, however, around 1850 with the introduction of the industrial cultivation of bananas to the islands. It gradually gained in importance and became the islands’ main export product, reaching its peak in the beginning of the 20th century. Yet again, strong competition with foreign exports, this time from Latin American countries, made survival on the monoculture of bananas hopeless and local farmers were forced to diversify by cultivating tomatoes, potatoes, other vegetables and exotic fruits.
Nowadays bananas are protected on the Spanish market against foreign suppliers, but their cultivation has become uneconomic due to higher costs and water shortage. Tomatoes are grown on a large scale mainly for exports between November and April. In recent years the cultivation of flowers and plants for export has also developed into a flourishing industry. Yet, cereals must be imported to a large extent.
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