Saturday, June 14, 2025
Thailand, Germany, and Austria’s top luxury hotel group has triggered a historic £587 million development boom in Spain’s Canary Islands after securing long-awaited approvals to expand in Meloneras, Gran Canaria — marking the first large-scale resort project in over fourteen years and signaling a powerful return of European investment in high-end sun-drenched destinations.
Once known only to a select few, Meloneras in southern Gran Canaria has grown into one of Spain’s most sought-after coastal destinations. Its sun-kissed beaches, upscale restaurants, and modern shopping zones now draw international holidaymakers throughout the year. Perfectly located under an hour from Las Palmas, the island’s capital, Meloneras also gives travelers easy access to Gran Canaria’s historical and cultural attractions, including the cobbled streets of the UNESCO-listed Vegueta district.
Despite its popularity, tourism infrastructure in this region has faced years of stagnation. For over a decade, key development plans sat idle, caught in bureaucratic red tape and planning disputes. Expansion projects that once promised economic growth and job creation failed to move forward, frustrating both investors and local businesses eager to tap into the island’s thriving tourism economy.
That prolonged standstill, however, has finally begun to shift. Local authorities recently approved a significant new development plan set to reshape the region’s tourism landscape. The plan includes expanding one current hotel and building five brand-new properties in and around Meloneras. If completed as envisioned, this wave of construction will mark one of the most substantial tourism infrastructure expansions Gran Canaria has seen in over a decade.
The project spans multiple sites and will introduce a diverse range of accommodations. One of the planned developments will consist of a low-rise complex of private villas and bungalows, catering to travelers seeking privacy and exclusivity. Another key project involves constructing a towering seven-storey hotel situated across from one of the area’s most iconic resorts. Together, these developments aim to add hundreds of new rooms and amenities to the island’s accommodation portfolio.
But the proposal goes beyond hotel buildings. It also includes a major overhaul of surrounding public infrastructure. Officials plan to redesign and widen key streets, add new roundabouts for smoother traffic flow, and introduce a service road running parallel to the coastline. This new road is expected to help manage both tourist and local traffic, reducing congestion during peak travel seasons and improving overall accessibility.
While excitement around the approval is high among tourism stakeholders, not everyone shares the same enthusiasm. No clear timeline has been provided for when construction will start or when the hotels will open. There is growing concern among local residents that the acceleration of large-scale tourism developments will come at a steep price for everyday life on the island.
Locals have increasingly voiced criticism of what they view as the unchecked rise of mass tourism. Many argue that the island’s infrastructure is already under significant strain, particularly in housing. Long-term residents have found it more difficult to secure affordable rentals, with many units being converted into short-term holiday lets. As new hotel projects push forward, fears are mounting that property prices will continue to rise, pushing working-class families further to the margins.
Environmental concerns are also growing. Critics point to fragile ecosystems along Gran Canaria’s coastline and warn that expanding urban sprawl could cause long-term damage to beaches, dunes, and marine life. Conservation advocates say that paving over coastal spaces and increasing water and energy demand for new resorts could undermine the island’s long-term sustainability and natural appeal.
Public frustration has already boiled over in recent years. Large anti-tourism demonstrations have taken place across the Canary Islands, including Gran Canaria. Protesters have marched through city streets and beachside promenades with banners and slogans, calling for greater limits on tourism and stronger protections for local communities. Their message is clear: tourism cannot come at the cost of residents’ quality of life or the environment they cherish.
Even more recently, new protests reignited the debate, signaling that tensions remain high. Demonstrators have once again taken to the streets, urging officials to reconsider the direction of tourism growth on the island. They are calling for a more balanced approach—one that includes long-term planning, environmental safeguards, and more community input in development decisions.
Tourism remains a cornerstone of Gran Canaria’s economy. It supports thousands of jobs and contributes significantly to public revenues through taxes and spending. The industry plays a critical role in funding public services, infrastructure, and cultural preservation. However, many argue that a more sustainable model is necessary—one that doesn’t rely solely on expansion but focuses on improving quality over quantity.
Some tourism professionals agree that the island should explore ways to attract higher-spending visitors and reduce its dependence on volume. They suggest enhancing existing hotels rather than building new ones, investing in eco-tourism, and setting firm regulations to control overcrowding in popular destinations.
A luxury hotel group backed by Thailand, Germany, and Austria has launched a landmark £587 million resort expansion in Gran Canaria, ending a fourteen-year development freeze after finally securing long-delayed approvals.
As Gran Canaria braces for its next tourism boom, the island faces a difficult challenge: how to welcome the world without losing its soul. The newly approved hotel projects signal an intent to grow, but whether that growth can coexist with community well-being and environmental stewardship remains to be seen.
The decisions made in the coming months will shape the future of Meloneras and the island at large. If done right, Gran Canaria could evolve into a model of modern tourism—one that benefits both visitors and locals. If not, the island risks alienating the very communities that give it its unique charm.
