Santa Cruz de Tenerife Reopens Debate on Tourist Zone Retail Regulations

Santa Cruz de Tenerife is at a regulatory crossroads as it tries to balance the needs of traditional local shops with the demands of large retail outlets. The City Council is reopening discussions to review the "Area of Great Tourist Influx" (ZGAT), a policy in place since 2021 that has caused friction between downtown merchants and businesses in the Cabo Llanos area.

For over a year, debates between groups like Facua and Zona Centro have been at a standstill. Now, the municipal Development Society is commissioning a study to guide upcoming Trade Forum meetings scheduled for May and June. Carmen Pérez, CEO of the department, says the goal is to break the deadlock by using objective data to reflect how consumer habits and the city’s economy have shifted since the current rules were written.

The core issue is a lack of a level playing field. Businesses within a specific downtown perimeter are allowed to set their own hours, but many choose not to open on Sundays and holidays because they don't find it profitable. Meanwhile, shopping centers in Cabo Llanos are pushing for the zone to be expanded so they can operate under the same conditions.

To find a solution, the City Council plans to look at how other cities handle these issues, including the model used in Las Palmas de Gran Canaria, where different zones operate under different rules. The council aims to use the upcoming forum to develop a technical proposal for the Trade Board. Officials emphasize that the city must act as a neutral mediator for the capital's fourteen commercial areas, ultimately reaching an agreement that updates outdated regulations to better suit today’s market.