Southern Europe's Short-Term Rentals Boosted by Economic Crisis in North

25.08.2023 - 14:34 / skift.com

Software developer Victor Varlamov logs in every morning to work on a sunny Spanish island off the coast of Africa after the prospect of steep heating bills and a winter made harsher by the Ukraine war drove him to leave his adoptive home in Poland.

He is not alone in pursuing a warmer, cheaper way of life as tourist boards across southern Europe have seized on the cost-of-living crisis to advertise the benefits of wintering abroad to those living in more northerly countries.

Varmalov, 50, together with his wife and teenage daughter, moved from Poland’s Baltic coast to Gran Canaria in Spain’s Canary Islands two months ago and plans to stay for the coming months.

“The economic crisis and mostly the war situation have pushed me here,” said Varmalov, who is Russian by birth.

Russia’s invasion of Ukraine in February drove some energy prices to record levels in August. They have eased, but are likely to stay high and have led to painful levels of inflation.

Before leaving Gdansk, where he has lived since 2016, Varmalov calculated he could save 250 euros ($259) on rent each month and pay 140 euros for all his utilities and internet, instead of the 200 euros he was paying for electricity alone in Poland.

What he now saves, he spends on eating out, he said, and also enjoys beach walks in his lunch breaks.

“The reality is better than my expectations,” he said.

The regional government of the Canary Islands, where the average winter temperature is 20 degrees Celsius (68°F), launched a social media campaign in September to attract remote workers, such as Varmalov, and retired people from countries including Britain, Germany and Sweden.

“It is no secret this will be a winter of great economic uncertainty in Europe but in the Canary Islands, we want to turn the situation around,” said Yaiza Castilla, the regional tourism chief, describing the islands as an “economic refuge”.

Other southern European countries also see the potential.

The Greek tourism minister in September visited Austria and northern European countries, such as Sweden, to “turn this huge energy crisis plaguing Europe into an opportunity”.

Portugal’s tourism board has also campaigned and its head Luis Araujo said expectations for winter tourists from northern Europe were “very positive”.

Tourism data supports his optimism.

Data collected for Reuters by home rental search engine HomeToGo showed that compared to last year, searches from countries such as Britain, Germany and the Netherlands rose 36 percent, 13 percent and 3 percent for winter accommodation in Spain, Greece and Portugal, respectively.

Gabriel Escarrer, CEO of Spanish hotel chain Melia, said people are booking apartments and suites for two or three months this winter in the Canary