Hotel unions that control the four western Canary Islands are threatening to carry out strikes in August during one of the busiest months of the year.
Talks between the unions and the hoteliers association, Ashotel, have broken down. The workers complaints arise from the hoteliers association wanting to freeze salaries for 2012 and 2013, despite improving results.
Demonstrations started in June in Las Americas and will culminate in strikes in August if an agreement cannot be reached. Employees are also threatening to picket hotel doors and put the grievances directly to the tourists, a situation the hotels are keen to avoid.
Spain has increased its airport taxes and the flight operators are already seeing a reduction in business. The uncertainty created by this dispute will only make for bad business, and with Canaries having to compete with improving tourism in other destinations, the number of visitors to Tenerife will be difficult to maintain.