- Lopesan will receive €300m from the Canary Islands government.
- The settlement resolves a 25-year legal dispute over tourism moratorium restrictions.
- The overall package amounts to €485m, reduced from €1bn claimed.
- The agreement reopens the development pipeline for 36 land plots.
- Individual municipal planning boards retain final authority on permits.
Lopesan will receive approximately €300m from the Canary Islands government as part of a €485m settlement resolving a quarter-century legal dispute over the archipelago’s tourism moratorium. The payment compensates for blocked developments mainly on Gran Canaria and Fuerteventura, resolving outstanding claims arising from restrictions on new hotel construction introduced between 2001 and 2003. The overall global package was heavily reduced from the nearly €1bn originally claimed by private firms for lost profits.
Lopesan is the largest recipient, receiving €300m due to having the highest number of frozen projects across Fuerteventura and southern Gran Canaria, especially in the premium Meloneras district. Other developers included in the settlement are Grupo Satocan (receiving €10.2m), Dreamplace, and Seaside Hotels. Because the public liability is so massive, the regional government will split the total compensation over several years.
The landmark agreement fundamentally reopens the regional development pipeline, with the government agreeing not to automatically reclassify the 36 affected land plots into protected rustic zones. The land plots will now return to standard urban classification processes, but individual municipal planning boards retain the final authority to grant or deny permits for any proposed resort construction. The deal closes a long-running dispute and provides significant capital for the chain.
Lopesan shared in a written statement, “The landmark agreement fundamentally reopens the regional development pipeline.”
Background
The concept of a tourism development moratorium in the Canary Islands spans two distinct eras: the historic restrictions on hotel construction enacted in the early 2000s, which have triggered massive legal compensation payouts, and the modern restrictions targeting holiday rentals following widespread civil protests.
In August 2026, the Government of the Canary Islands finalised a major out-of-court settlement to resolve a 20-year legal dispute. Between 2001 and 2009, the regional government passed laws (such as Law 19/2003) placing a moratorium on new standard hotel beds to control coastal saturation.
Hotel developers sued the government for lost profits on projects that were frozen by these zoning regulations. The government agreed to pay €485m in total compensation to developers to prevent a potential €1 billion liability. The local firm Lopesan Hotels & Resorts received the largest share, totaling €300m. Under the agreement, the disputed plots will not be reclassified as protected rustic land, but local municipalities maintain the final authority to grant or deny future building permits.
The 90pc rule of 2025
In 2025 a five-Year holiday rental moratorium was introduced to combat an acute housing crisis and rising local discontent. The regional government shifted focus from hotel blocks to private apartments by implementing a strict five-year moratorium on new holiday rental licenses (Viviendas Vacacionales). The law dictates that at least 90pc of a municipality’s housing stock must remain residential, capping holiday rentals at a maximum of 10pc.
Local councils have five years to draft specific urban zoning plans determining exactly where tourism rentals can exist. No new licenses will be issued in a municipality until this urban planning is finalised. Entire apartment buildings cannot be dedicated to holiday rentals, and social housing (VPO) is strictly banned from tourist use.
Despite record tourist spending, with the archipelago generating €4.851 billion in the second quarter of 2026 alone, local frustration remains high. Under movements like “Canarias Se Agota” (The Canaries are Running Out), tens of thousands of residents have routinely protested against environmental degradation, wastewater pollution, and low local wages.
Activists and certain local politicians, notably in heavily visited areas like Lanzarote and Tenerife, continue to demand a total freeze on all new tourist beds (both hotel and rental). They argue that the islands have reached their ecological and infrastructural limits regarding
