An analysis by specialist Ulrich Götz Roth quantifies the impact of commissions from digital platforms on the local economy. The loss of income amounts to over 10 million euros of activity that is not generated on the island.
One euro that stays in La Palma is not spent just once. It pays for a repair, then a purchase at the local hardware store, and afterwards the services of a local management company. But when that euro leaves the island in commissions to multinationals before even touching Palmera soil, the loss is exponential. This is reflected in the third installment of the report 'Your house. Your price. Your island', prepared by Ulrich Götz Roth, manager of 100 Árboles S.L. / La Palma Travel.
More than 10 million euros vaporised
The study cross-references marketing data with official sector indicators and concludes that between 3.4 and 4.8 million euros annually leave the island in commissions and digital promotional conditions. Applying the tourism production multiplier from the Chamber of Spain, set at 2.14, that escape of 4.8 million equates to more than 10 million euros of economic activity that is vaporised and does not get generated on the island.
The so-called “multiplier effect” of tourism is the focus of this analysis. Simply explained: a tourism income that remains in La Palma is reinvested multiple times in the local fabric. When it is lost before arriving, the damage is doubled. The ability to hire local services, improve facilities, and invest in the activity itself is drastically reduced, according to the report.
The brake on competitiveness and quality employment
The report insists that the margin lost by an accommodation should not be understood as a mere private benefit. That money is the real capacity that the small resident owner has to maintain their competitiveness, improve the quality of their offer, and, above all, develop their own commercial strategy. Without that margin, the Palmera owner can hardly compete with large holders or generate quality employment on the island.
The digital escape not only affects individual pockets. The real impact translates to the actual economy of La Palma, reducing internal wealth and limiting business opportunities for local suppliers. The study emphasises that the loss of income is not just a matter of margins, but of the sustainability of the insular tourism model.
For the Palmera reader, the conclusion is clear: every booking channelled through international digital platforms leaves less money on the island. The small resident owner sees their reinvestment capacity reduced, which in the long term affects the quality of the tourism offer and local employment. The report recommends promoting direct marketing channels that allow for retaining more value in the territory.
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