MOST ATTRACTIVE SECTORS FOR INVESTMENT IN TENERIFE

The range of industries for which Tenerife offers opportunities is immense. From creative and cultural industries to those related to the digital economy, from the marine-maritime sector to the blue economy.

Of course, in tourism, a sector in which it is an international benchmark, receiving almost six million tourists a year.

An island with enormous natural assets, it also offers interesting possibilities for positioning itself as a laboratory for innovation and testing new technologies and business models, as well as a place to host digital nomads or for the installation of businesses related to renewable energies and the provision of professional services.

We review the most attractive sectors:

Digital economy and e-commerce

With a mature yet sophisticated local market, Tenerife enjoys high growth prospects in European, Latin American and African markets.

To this end, it has an increasingly consolidated digital base that offers an extraordinary quality-cost-risk ratio and availability of local talent with low levels of turnover and the ability to attract international talent thanks to high standards of living.

Tenerife considers the digital economy and information and communication technologies to be cross-cutting areas that generate new opportunities for expansion and improve local competitiveness.

In addition, it offers the possibility of multiple business operations in different national and international territories through digital production and marketing, e-commerce, software and application development.

Creative and cultural industries

The local industry with a high level of specialisation, quality services and tax incentives, make Tenerife a very competitive market in the European context to carry out creative and cultural productions such as films, documentary series, animation, documentaries or advertising productions.

The Canary Islands offer an investment deduction incentive for Spanish and international productions of 45-50%.

The Canary Islands are one of the regions of Spain with the highest number of hours of sunshine per year. Its diversity of natural scenery and exceptional climate make Tenerife one of the best places in Europe to host audiovisual productions.

In addition, it has a solid audiovisual sector with qualified teams and professionals, with experience to meet any need.

Tenerife is also a powerful stage and test laboratory for new trends in the audiovisual and interactive entertainment industry, such as virtual and augmented reality, e-sports, online and multiplayer games, among others.

The key organisations in the audiovisual sector in Tenerife are Tenerife Film Commission and Cluster Audiovisual de Canarias.

Tenerife Film Commission:

The Tenerife Film Commission is a department of the SPET-Tourism of Tenerife, created in the year 2000, to promote audiovisual production on the island by foreign and mainland production companies as well as by Tenerife producers, and to promote Tenerife as a filming location, attending trade fairs, presentations and festivals in the sector.

Services:

• Free advice.
• Localisation.
• To promote contact with the producers local and regional companies and production services.
• Advise on obtaining permits.
• Acting as a link with the local, island and regional administration.
• Contact with the national and international networks of Film Commissions (Spain Film Commission and AFCI).

Canary Islands Audiovisual Cluster:

In just a few years, the Canary Islands have become a relevant node for international audiovisual production, surprising in the process the small Canary Islands companies that have to adapt to a constantly evolving market. The small size of Canarian audiovisual companies hinders strategic plans for growth and innovation.

The solution: The Canary Islands Audiovisual Cluster creates a horizontal network of collaboration and advises its members on how to keep up to date, equip themselves with innovative tools, internationalise and explore new sales channels for their products and services.

Companies associated with the Canary Islands Audiovisual Cluster:

1. They collectively equip themselves with the resources to compete and lead in a productive sector.
2. They make themselves visible and gain power vis-à-vis organisations and institutions.
3. They acquire a key competitive position that facilitates growth.
4. They pool resources and create synergies around common interests to access more and better tools for growth.
5. They allow you to keep track of the evolution of the sector through all member companies.

Renewable energy & cleantech

The abundance of renewable resources, especially solar and wind energy, and the challenge of finding a solution to the Canary Islands' high dependence on fossil fuels, which are highly polluting, offer great potential for the development of projects and test beds in the field of alternative energies and clean technology.

The Government of the Canary Islands has a target of 45% of its electricity demand in 2025 to come from renewable sources.

This involves investments in efficiency improvements, transmission grid upgrades, energy storage systems and inter-island interconnections to strengthen existing grids.

The islands have a very high availability of alternative energy sources, an adequate fiscal framework for this type of development and a high scientific and technical qualification with resources such as the Institute of Technology and Renewable Energies (ITER) and the Canary Islands Technological Institute (ITC)The company's knowledge and experience in the sector are a guarantee.

Promoted by the Cabildo Insular de Tenerife, ITER was created with the aim of promoting sustainable development and innovation.

Today, it is an international benchmark research centre in renewable energies, engineering, telecommunications and the environment.

The ITC is a public company, created by the Government of the Canary Islands in 1992 and attached to the Regional Ministry of Economy, Industry and Trade to implement public policies based on the promotion of research, development and innovation.

Hub for West Africa

Due to its strategic location, its legal and financial security and the fact that it has the best tax system in Europe, many foreign companies with investments in Africa have set up their logistical or operational offices in the Canary Islands, making the islands their business hub with West Africa.

The Canary Islands European Business Hub in Africa brand enjoys international recognition..

Its position in a strategic enclave close to Europe, Africa and on the maritime route to South America, its membership of the European Union and its links with the countries of the region make the Canary Islands a logistics and business hub in the Mid-Atlantic.

Tenerife, with modern infrastructures and highly specialised professionals, meets the necessary conditions as a logistics hub for companies exporting raw materials, as a base for operations and expatriates or as an assistance centre for the offshore industry, allowing it to have a base in Europe, less than a two-hour flight from destinations of interest.

Startups y digital nomads

Tenerife has a strong capacity for attracting European and extraordinary talent as a result of its strong commitment to the availability of coworking, incubators and other infrastructure.

It is also due to competitive costs, excellent air connectivity to major European destinations, as well as the excellent climate and quality of life.

Tenerife is in an incipient phase of development of its local entrepreneurial ecosystem, with a diverse, young, floating population, capable of integrating a high volume of foreign population.

The ability to attract European and non-EU talent thanks to a specific visa for entrepreneurs and investors is an incentive that consolidates Tenerife as an ideal destination. Information and resources at Tenerife Work and Play

Blue economy

Within the marine sector, Tenerife has the optimum conditions to be an enclave for exports to countries on the African coast. It is a logistical hub for transit and tricontinental activity and, for the provision of services, to the platforms currently operating in the area.

It represents 7% of direct activity in the Canary Islands, 7.4% of GDP and 6.1% of GVA, with more than 45,000 related workers.

The geostrategic positioning of the Canarian ports and their level of maturity represent a great opportunity for the development of this strategic sector.

The quality of local specialised services and the possibility of providing and attracting foreign specialised talent are highly valued by companies already operating on the island.

R&D Centres of Excellence

Tenerife's natural conditions, its unique climatic and natural environment, its biodiversity and the astronomical quality of the sky, together with the availability of cutting-edge scientific and research infrastructures, make the island a laboratory for new technologies and innovation that can be exported to any part of the world.

Instituto Astrofísico de Canarias (Canary Islands Astrophysical Institute) IAC

Tenerife is a priority destination for investment projects in R&D&I centres of excellence, which find on the island an exceptional geographical and natural environment for the development of their scientific, technological and research activity.

It has world-renowned cutting-edge infrastructures, such as the Instituto Astrofísico de Canarias (IAC), which are open to the international scientific community.

The IAC is an internationalised Spanish research centre selected by the Spanish Government as a "Severo Ochoa Centre of Excellence".

It dedicates its activity to astrophysical research, the development of scientific instrumentation linked to astronomy and the training of research personnel.

The participation of the institutions of the various countries is carried out through an International Scientific Committee (CCI). The exceptional quality of the Canarian sky for astronomical observation is protected by law.

INVOLCAN

Due to its geographical location and relief, Tenerife is also an important field for the study of volcanic activity.

It houses the National Centre of Volcanology or Volcanological Institute of the Canary Islands which aims to contribute to the improvement of volcanic risk management and sustainable development in the Canary Islands and other volcanic regions.

CIBICAN

In the field of Health Sciences and Biomedicine, important research activity is also carried out with reference institutions such as the Biomedical Research Centre of the Canary Islands and the University Institute of Tropical Diseases.

Professional Services:

The opportunity in the professional services segment lies in the advantageous quality-cost-security ratio.

In addition, the island has excellent telecommunications infrastructure and data connectivity, university and multilingual talent, competitive wage costs and training support.

In the last decade, factors such as rising wages and costs in emerging markets, rising inflation in many of these economies and the uncertainties generated by instability have led to a significant increase in Spain and also in the Canary Islands as an investment destination.

Tenerife is a very attractive territory for multinational companies interested in providing services within a stable legal, political and financial framework, such as that of the European Union.

Tourism:

Tourism is, in the Canary Islands, a leading industry thanks to the external recognition of the islands as a high quality destination and first class infrastructures and services, with air connections to strategic markets and traditional emitters.

Its versatility and solidity make Tenerife an extraordinary context for the development of businesses and activities related to services and value propositions in the tourism, leisure and sports sectors.

Tourism has traditionally been an important source of income and a key factor in the economic growth of Tenerife, with a significant contribution to the island's GDP.

In continuous evolution and renewal, this sector registers growth opportunities mainly in areas of specialisation such as health and wellness, ICT, sustainable tourism, tourism intelligence, scientific tourism, sport and the related ancillary industry.