Smart Economy

SWOT Analysis

Weaknesses

  • Lack of business and entrepreneurial culture on the island.
  • Low level of business development in terms of innovation.
  • Some municipalities have a business fabric managed by an aging sector of society.
  • Dependence on certain tourism markets (Germany, United Kingdom and France).

Threats

  • Insularity limits the obtaining of resources. 
  • High dependence on the agricultural sector as an economic engine.
  • The decline of airlines in the Canary Islands reduces the number of tourists arriving to the island.
  • Preocupación por la huella de carbono generada al volar de los turistas.
  • Concern about the carbon footprint generated by flying tourists.
  • Brexit, will imply a change in the legal status of residents in La Palma’s main tourist market.
  • Crisis generated by the eruption of the Cumbre Vieja volcano. 

Strengths

  • Good connections with the main tourist destinations.
  • Great natural, scenic and cultural wealth that attracts large volumes of tourists every year, being declared a Biosphere Reserve.
  • High involvement of private and public agents. 
  • Excellent weather conditions throughout the year. 

Opportunities

  • High foreign resident population.
  • The ultraperipheral status of the Canary Islands generates a new source of income from subsidies and benefits in La Palma.
  • Innovation of new business models based on tourism.
  • In view of the natural and scenic richness of the area, the idea of promoting rural tourism arises.
  • La Palma has important sporting events such as the Transvulcania, generating a great repercussion, which can attract a greater number of tourists to the island.

Objectives

Increase by
0 %
consumption of local products
To increase the degree of 
exports of the
0 %
Generate new business models that provide an added value to the
0 %
to the island’s GDP
To increase the number of companies created in a
0 %

Action plans

Entrepreneurial ecosystem

Problems
  • In La Palma, the business fabric is not very diversified, focused on livestock, agriculture and tourism, and we could say that it is outdated.
  • Companies have a low level of development in terms of innovation.
  • Companies have difficulty developing in their initial stages.
Solutions
  • Facilitate entrepreneurship by offering grants and advice, especially in the initial stages of the business.
  • Creation of business incubators.
  • Generate an innovation ecosystem by promoting the creation of solutions by citizens to challenges already existing on the island. This would create opportunities favoring the emergence of new companies and investors.

Promote the consumption of local products

Problems
  • The insularity of the region limits the obtaining of resources, leading to a high level of dependence on the exterior.
Solutions
  • Define a series of communication and promotion actions to improve the competitiveness and market positioning of La Palma products compared to other products. 
  • Use of local products in events organized on the island.
  • Encourage all initiatives that allow the positioning and professionalization of sectors that use local products. For example, sending notifications in apps with offers and promotions.

Investment attraction

Problems

The dependence of the economy on sectors such as agriculture on the island means that La Palma’s economic activity is highly influenced and fragile in the face of possible global changes and trends, as has been reflected in the recent eruption of the Cumbre Vieja volcano.

Solutions
  • Develop a strategy for attracting investors by identifying, promoting and implementing new projects.
  • Organization and attendance to national and international events related to La Palma’s strategic sectors.

New economic models

Problems

Agriculture and tourism are positioned as the main economic engines of La Palma. This situation leaves the island’s economy in clear vulnerability, leaving it dependent on tourist markets and catastrophes that may occur.

Solutions
  • Develop disruptive technologies that provide a point of innovation and differentiation of the sector from other competitors.
  • Work on options such as augmented reality applied to tourism, offering experiences to visitors when choosing their accommodations.
  • Innovate new and eye-catching projects, such as displaying animations or images on surfaces thanks to video mapping technology, using video projectors. 
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