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Restoration in Fuerteventura Calls for an End to Fiscal “Limbo”: Equal Treatment with Commerce, DIC, and Housing Incentives

Ni Isla Verde ni capitalina: Fuerteventura en un “limbo”

Fuerteventura, a stunning island in the Canary archipelago, finds itself caught in a challenging predicament. Amid rising costs and economic pressure, the local restaurant sector is grappling with its unique position—neither enjoying the competitive advantages of the capital islands nor the incentives afforded to the so-called ‘green islands.’ This reality creates significant concerns for many business owners struggling to maintain viability.

The State of Struggle

The repercussions of this situation are palpable in Fuerteventura’s culinary scene. Gustavo Astrada, the president of the majorero gastronomic association FuerteGourmet, and its manager, Enrique Obeso, both voice their alarm during an engaging interview on La Voz de Fuerteventura, a program on Radio Insular. They describe a troubling environment that many businesses deem “insostenible” or unsustainable. Even as suppliers raise their prices, many restaurants are reluctant to pass these increased costs onto customers for fear of losing clientele.

Astrada conveys the intensity of this pressure: “We always buy at a higher price, but we don’t raise our prices out of fear of going under.” This balancing act often leads to weeks or even months where businesses record losses rather than profits, underscoring the precariousness of their financial health.

Seeking Equilibrium: Collaboration with Local Authorities

In light of these challenges, key players within FuerteGourmet sought dialogue with Manuel Domínguez, the first vice president of the Canary Islands and the minister of Economy and Autonomous Affairs. Their meeting centered around various proposals aimed at fostering greater fiscal and administrative equity among sectors.

A significant point of discussion was the call for equal treatment between the restaurant industry and the retail sector. Astrada emphasizes this disparity: “Commerce receives aid, while hospitality does not… We aim for a level playing field.” He points out that in some localities, such as La Oliva, efforts include both eateries and stores in their economic stimulation initiatives—a model that could provide a framework for broader application.

Fiscal Concerns and Investment Incentives

Another crucial point brought to the table was the desire for a policy review pertaining to the Canary Islands’ Investment Deduction (DIC). Fuerteventura advocates for alignment with the conditions of the ‘green islands.’ Currently, businesses in the latter receive an 80% deduction, compared to 70% for those in Fuerteventura. Obeso articulates the ongoing concern: “We want parity; we want these disparities to be addressed.”

This conversation extends beyond mere numbers; it touches on the underlying narrative of fairness and equal opportunity for all businesses in the archipelago.

Housing Issues as a Barrier to Growth

An additional layer to the difficulties facing the restaurant sector is the acute housing crisis affecting staff availability. Astrada notes the intertwining nature of housing and employment: “The housing issue is tied to the labor shortage.” Despite a present demand for labor, businesses struggle to fill positions, primarily due to the high cost and lack of accessible housing for potential employees.

To address this, FuerteGourmet proposes financial incentives to encourage landlords to provide housing for workers. “We’d like this to be a deduction,” they suggest, advocating for tax relief for business owners who facilitate accommodation for their employees. Recognizing the forfeited rental income involved, these incentives could ultimately strengthen the workforce.

Rising Operational Costs

The restaurant sector faces not only challenges related to labor and fiscal policy but also to operational costs. The price of fuel, for instance, significantly impacts overall expenses, with Fuerteventura’s fuel costs ranking among the highest in the Canary Islands. Astrada highlights this crucial factor: “Fuerteventura leads in prices for diesel and gasoline,” emphasizing the compounded pressure that businesses encounter relative to their counterparts in other islands.

Despite these pressing challenges, the leadership at FuerteGourmet remains committed to maintaining an open dialogue with the Canary Island government. With their proposals on the table, they hope to glean actionable insights that will benefit Fuerteventura’s vibrant yet struggling restaurant sector, alongside addressing issues faced across the broader Canary Islands.

Through collaboration and dialogue, Fuerteventura’s restaurant community aims to overcome the barriers presented by its current “limbo” status, ensuring that the island does not just survive but thrives in the evolving economic landscape.

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