Realising the Potential of the Outermost Regions for Sustainable Blue Growth

Realising the potential of the Outermost Regions for sustainable blue growth

ANNEX 9 TO THE FINAL REPORT THE BLUE ECONOMY IN THE CANARY ISLANDS

Written by COGEA srl, in partnership with AND International, Fundación AZTI and Poseidon Aquatic Resources Management Ltd September – 2017

EUROPEAN COMMISSION Executive Agency for Small and Medium-sized Enterprises (EASME) Department A – COSME, H2020 SME and EMFF Unit A3 - EMFF

E-mail: [email protected]

European Commission B-1049 Brussels

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

Realising the potential of the Outermost Regions for sustainable blue growth

ANNEX 9 TO THE FINAL REPORT THE BLUE ECONOMY IN THE CANARY ISLANDS

Executive Agency for Small and Medium-sized Enterprises (EASME) European Maritime and Fisheries Fund (EMFF) 2017 EUR [number] EN

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LEGAL NOTICE This document has been prepared for the European Commission however it reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein. More information on the European Union is available on the Internet (http://www.europa.eu). Luxembourg: Publications Office of the European Union, 2017 ISBN 978-92-9202-313-3 doi: 10.2826/64901 © European Union, 2017

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

Contents

Mapping economic activties ...... 1 1 Identification and mapping of economic activities ...... 1 2 Synergies and tensions between maritime activities ...... 24 3 Best practices and flagship projects ...... 31 4 Gap analysis ...... 36

Mapping actors and maritime strategies...... 42 5 Mapping public authorities ...... 42 6 Summary of existing maritime strategies ...... 44 7 Mapping main stakeholders ...... 49

Mapping Blue Growth and assessing the potential...... 55 8 Growth drivers and barriers ...... 55 9 Future potential for mature and pre-developing activities ...... 63 10 Investments opportunities ...... 75

Identifying public and private intervention ...... 76 11 Potential financial, legislative and non-legislative measures for stimulating growth ...... 76 12 OR potential contribution to BG and IMP initiatives ...... 83 13 Conclusions on concrete measures by type and timeframe ...... 93 14 Potential projects for the Atlantic Assistance Mechanism ...... 105

Roles and contributions to external initiatives ...... 106

List of interviewees ...... 108

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

List of acronyms

ACISII Agencia Canaria de Innovación y Sociedad de la Información — Canarias Agency of Innovation and Information Society AC Fisheries advisory council (former RAC) BEA Banco Español de Algas – Spanish Algae Bank CFP Common Fishery Policy EEZ Exclusive Economic Zone EIB European Investment Bank CAGR Compound annual growth rate EMFF European Maritime and Fisheries Fund ERDF European Regional Development Fund FDI Foreign Direct Investment FLAG Fishing Local Action Group FP Formación Profesional – Professional Training GDP Gross Domestic Product GVA Gross Value added SFPA Sustainable Fisheries Partnership Agreement ICCAT International Commission for the Conservation of Atlantic Tunas ICT Instituto Canario de Turismo – Canarias Institute of Tourism IDAE Instituto para la Diversificación y el Ahorro de Energía – Institute for the diversification and saving of energy IEO Instituto Español de Oceanografía – Spanish Institute of Oceanography INE Instituto Nacional de Estadistica –National Institute of Statistics ISTAC Instituto Canario de Estadistica – Canarias Institute of Statistics ITC Instituto Tecnológico de Canarias – Canarias Technological Institute IUU Illegal, Unreported and Unregulated fishing MAPAMA Ministerio de Agricultura, Pesca, Alimentación y Medio Ambiente – Ministry of Agriculture, Fisheries, Food and Environment MSP Marine Spatial Planning NACE Nomenclature statistique des activités économiques dans la Communauté européenne OR Outermost Region PEBA Plataforma de Excelencia en Biotecnología de Algas – Excelence Platform on Algae Bioproduction POSEICAN Former programme of options specific to the remote and insular nature of the outermost regions for the Canary Islands PLOCAN Plataforma Oceanográfica de Canarias – Canarias Oceanographic Platform PROMOTUR PROMOTUR Turismo de Canarias – PROMOTUR Tourism of Canarias RIS3 Estrategía de especialización inteligente – Smart Specialization Strategy SODECAN Sociedad de Desarrollo de Canarias – Society for the Development of Canarias ULL Universidad de La Laguna – University of La Laguna ULPGC Universidad de Las Palmas de Gran Canarias – University of Las Palmas de Gran Canarias

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

Mapping economic activties 1 Identification and mapping of economic activities Table 1 — GVA of marine and maritime activities

Maturity GVA (1000 €) Group Activities (4-digit NACE codes) vs. Pre- maturity 2008 2009 2010 2011 2012 2013 2014 CAGR Fishing and aquaculture M 27 112 28 864 20 685 20 789 21 611 17 591 26 237 -0.55 A 03.11 Marine fishing (production) M 19 767 18 048 11 955 10 436 12 627 10 632 13 443 -6.22 Living resources A 03.21 Marine aquaculture (production) M - 2 143 2 153 2 991 3 762 2 890 1 855 6 341 19.73 C 10.20 Processing and preserving of fish, M 9 488 8 663 5 739 6 590 6 094 5 103 6 453 -6.22 crustaceans and molluscs Non-living Desalination M 50 519 54 858 59 335 57 614 54 754 53 704 55 087 1.45 resources Maritime transport M 258 685 250 859 249 743 249 394 242 733 241 290 245 399 -0.87 H 50.10 Sea and coastal passenger water transport M 170 336 165 184 164 449 164 219 159 833 158 882 161 588 -0.87 (ferry share) H 50.20 Sea and coastal freight water transport M 88 348 85 676 85 295 85 175 82 900 82 407 83 811 -0.87 Shipping Ports (including dredging) M 430 414 417 393 415 536 414 955 403 872 401 470 408 308 -0.87 H 52.10 Warehousing and storage services M 65 853 63 861 63 577 63 488 61 792 61 425 62 471 -0.87 H 52.22 Service activities incidental to water M 351 648 341 010 339 493 339 018 329 963 328 001 333 587 -0.87 transportation H 52.24 Cargo handling M 12 912 12 522 12 466 12 449 12 116 12 044 12 249 -0.87 Ship buidling and repair M 68 901 63 158 48 151 76 629 68 272 76 531 n.a 2.12 Ship building and C 30.11 Building of ships and floating structures M 7 318 3 621 1 684 4 165 2 495 1 132 n.a -31.15 repair C 33.15 Repair and maintenance of ships and boats M 61 583 59 537 46 467 72 464 65 777 75 399 n.a 4.13 Coastal tourism M 2 593 688 2 335 726 2 348 425 2 483 260 2 441 756 2 575 373 2 678 955 0.54 I 55 Accommodation M 2 106 816 1 889 664 1 900 992 2 016 384 1 983 744 2 098 560 2 185 344 0.61 I 56 Food and beverage service activities M 358 159 321 243 323 169 342 785 337 236 356 755 371 508 0.61 Tourism H 51 Air transport M 128 713 124 819 124 264 124 090 120 776 120 058 122 103 0.61 Cruise tourism M 3 476 3 371 3 356 3 351 3 262 3 242 3 298 -0.87 H 50.10 Sea and coastal passenger water transport M 3 476 3 371 3 356 3 351 3 262 3 242 3 298 -0.87 (cruise share)

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

Table 2 — Employment in marine and maritime activities Maturity Employment Group Activities (4-digit NACE codes) vs. Pre- maturity 2008 2009 2010 2011 2012 2013 2014 CAGR Fishing and aquaculture M n.a 1 758 1 684 1 727 1 672 1 729 1 732 -0.30 A 03.11 Marine fishing (production) M n.a 1 413 1 386 1 466 1 373 1 420 1 425 0.17 Living resources A 03.21 Marine aquaculture (production) M n.a 250 216 175 199 215 222 -2.35 C 10.20 Processing and preserving of fish, M n.a 95 82 86 100 94 85 -2.20 crustaceans and molluscs Non-living Desalination M 997 1 022 1 008 994 984 969 992 -0.09 resources Maritime transport M 2 628 2 442 2 380 2 356 2 410 2 544 2 658 0.19 H 50.10 Sea and coastal passenger water transport M 1 608 1 604 1 688 1 700 1 764 1 868 1 944 3.21 (ferry share) H 50.20 Sea and coastal freight water transport M 1 020 838 692 656 646 676 714 -5.77

Shipping Ports (including dredging) M 6 398 6 749 7 351 6 753 6 219 6 906 6 942 1.37 H 52.10 Warehousing and storage services M 979 1 033 1 125 1 033 952 1 057 1 062 1.37 H 52.22 Service activities incidental to water M 1.37 transportation 5 227 5 514 6 005 5 517 5 081 5 642 5 671 H 52.24 Cargo handling M 192 202 221 203 187 207 208 1.37 Ship buidling and repair M 1 155 1 168 976 1 084 1 184 1 109 n.a -0.81 Ship building and C 30.11 Building of ships and floating structures M -24.97 repair 143 99 74 81 62 34 n.a C 33.15 Repair and maintenance of ships and boats M 1 012 1 069 902 1 003 1 122 1 075 n.a 1.22 Coastal tourism M 111 794 103 776 98 745 102 267 102 969 101 884 105 301 -0.99

I 55 Accommodation M 54 271 50 468 45 888 48 649 48 460 48 040 51 373 -0.91 I 56 Food and beverage service activities M 56 142 52 207 51 790 52 404 53 415 52 986 53 144 -0.91 Tourism H 51 Air transport M 1 381 1 101 1 067 1 214 1 094 858 784 -8.99 Cruise tourism M 32 32 34 34 35 37 39 3.21 H 50.10 Sea and coastal passenger water transport M 3.21 (cruise share) 32 32 34 34 35 37 39

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

Table 3 — Turnover of marine and maritime activities Maturity Turnover (1000 €) Group Activities (4-digit NACE codes) vs. Pre- maturity 2008 2009 2010 2011 2012 2013 2014 CAGR Fishing and aquaculture M 106 114 104 137 73 687 77 439 81 663 72 666 85 882 -3.46 A 03.11 Marine fishing (production) M 35 940 32 815 21 737 18 975 22 958 19 331 24 442 -6.22 Living resources A 03.21 Marine aquaculture (production) M 22 734 28 006 23 258 28 008 28 488 27 817 29 177 4.25 C 10.20 Processing and preserving of fish, 47 440 43 316 28 693 30 456 30 217 25 517 32 263 -6.22 crustaceans and molluscs Non-living resources Desalination M 153 625 159 810 164 520 151 082 150 210 154 339 131 007 -2.62 Maritime transport M 487 252 469 337 476 697 483 904 475 928 400 063 417 220 -2.55 H 50.10 Sea and coastal passenger water M -2.55 transport (ferry share) 339 001 326 537 331 658 336 672 331 123 278 340 290 277 H 50.20 Sea and coastal freight water transport M 148 251 142 800 145 040 147 233 144 806 121 723 126 943 -2.55 Shipping Ports (including dredging) M 828 864 777 259 870 112 849 213 872 715 914 638 841 435 0.25 H 52.10 Warehousing and storage services M 126 816 118 921 133 127 129 930 133 525 139 940 128 739 0.25 H 52.22 Service activities incidental to water M 0.25 transportation 677 181 635 021 710 882 693 807 713 008 747 259 687 452 H 52.24 Cargo handling M 24 866 23 318 26 103 25 476 26 181 27 439 25 243 0.25 Ship buidling and repair M 136 913 125 474 99 363 160 730 133 246 164 720 n.a 3.77 Ship building and C 30.11 Building of ships and floating structures M 11 740 6 515 3 519 8 832 5 784 4 323 n.a -18.11 repair C 33.15 Repair and maintenance of ships and M 5.08 boats 125 173 118 959 95 844 151 898 127 462 160 397 n.a Coastal tourism M 5 996 232 5 411 531 5 572 033 6 128 763 5 894 672 6 206 191 n.a 0.69

I 55 Accommodation M 2 768 684 2 524 754 2 612 346 2 879 274 2 780 281 2 936 605 n.a 1.18 I 56 Food and beverage service activities M 2 864 130 2 611 791 2 702 402 2 978 533 2 876 126 3 037 840 n.a 1.18 Tourism H 51 Air transport M 363 418 274 986 257 285 270 956 238 265 231 746 228 657 -7.43 126 Cruise tourism M -2.55 148 251 142 800 145 040 147 233 144 806 121 723 943 H 50.10 Sea and coastal passenger water M -2.55 transport (cruise share) 148 251 142 800 145 040 147 233 144 806 121 723 126 943

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

Notes:  Data sources: INE, ISTAC, MAGRAMA.  Marine fishing aquaculture and fish transformation data are from Consejería de Agriculture, Pesca y Aguas and publications of MAPAMA about fishing and aquaculture in Spain, various years.  Desalination is estimated from ISTAC data for code E 36 (Natural water; water treatment and supply services). It is estimated as the third part for all variables.  The shares of H 50.10 and H 50.20 have been determined from INE’S H 50 using the input-output tables (2005) available from ISTAC. Ferry and cruise shares have been estimated using the consortium’s methodology.  Ports data estimation is based on the services shares provided in the work of de Rus, Gonzales and Tovar (2009), Impacto económico del Puerto de Las Palmas, which we apply to data for H 52 provided by INE.  Ship building and repair data are provided by INE (2008-2013), 2014 is not available due to statistical secret.  Gaps in data are due to unavailability of data.  All of these sectors are considered mature.

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

1.1 Fisheries 1.1.1 Overview Fishery Marine fishing is an economic activity with a long tradition in the Canary Islands. Its socioeconomic importance transcends its economic weight in the archipelago’s GDP. In 2015, it achieved 0.06 % (1) of the regional GDP. In 2015, landings in the Canary Islands ports reached 11 927 tons, out of which 3 % are frozen fish captured outside the archipelago waters (2). The most important resources harvested in the archipelago waters are small pelagic species such as Atlantic chub mackerel (21 % of landings), sardinellas (18 %), skipjack tuna (16 %), parrotfish (5 %), yellowfin tuna (4 %), amongst others (3). The fleet is composed of 794 fishing vessels. Around 87 % of these boats are dedicated to artisanal activities with diverse fishing gear, while the remaining boats are trawlers, longlines and purse seiners. The fleet is relatively old, being 60 % of the boats older than 30 years. The average age is 35 years. Currently, the fishing activity employs around 1 500 people. The artisanal fleet mostly operates in the waters of the archipelago, while trawlers and longliners operate in waters of third countries. These vessels are subject to licenses availability in the context of bilateral agreements with Mauritania, Morocco and Guinea Bissau, amongst others. Aquaculture The Canary Islands enjoys good natural conditions for the development of marine aquaculture. In winter, the minimum water temperature is around 17.5° C and in summer the maximum temperature is 24° C. These conditions ensure steady growth of the species throughout the year. In turn, the fact that water temperature does not surpass 24° C diminishes the risk of pathological events. Temperature conditions shorten the culture period and provide an advantage in relation to other regions with higher temperature fluctuations. In turn, the location of the islands provides a barrier against pathologies observed in other areas (4). In 2015 the aquaculture production achieved 7648 tons with a value at first sale prices of 34 million EUR (Figure 1). The activity is almost entirely based on the culture of sea bass and sea bream reared in sea cages. The production of sea bass in 2014 was of 5 097 tons. In turn, the production of sea bream achieved 1588 tonnes (5). The Canary Islands is the second national producer of sea bass, following Murcia, and the third producer of sea bream after Valencia and Murcia. Sea bass is the main species of the aquaculture sector. In fact, in 2014 it comprised 85 % of the total production. In 2011 the sector started to produce algae, Senegalese sole and shrimps (6). In 2013 the production of these species was around 80 tons. Although the first experiences were carried out in early 1990s the sector started to develop in 1994 when the Financial Instrument for Fisheries Guidance (FIFG) was implemented. The first aquaculture projects were approved in 1994 and by 1998 the

(1) According to the Consejería de Agricultura, Ganadería y Pesca, the production of the fishing activity amounted 25.4 million €. This means 0.06 % of the Canary Islands’ GDP in 2015 (42 300 million €). Aquaculture in turn produced 34 million €. This data corresponds to first sales prices. Considering that the processing sector has lost importance and is a marginal activity this data could be considered reliable to measure the weight of the sector in the regional economy. Available at: http://www.gobcan.es/cmsgobcan/export/sites/agricultura/pesca/galerias/doc/estadisticas/Totales. pdf (2) Consejería de Agricultura, Ganadería, Pesca y Aguas. (3) Martín-Sosa, P. 2012. Fisheries around Outermost Regions: Canary Islands. Report for the Scientific, Technical and Economic Committee for Fisheries, European Commission. Instituto Español de Oceanografía, Centro Oceanográfico de Canarias: 61 pp. (4) Goverment of Canarias. Plan Estratégico de la Acuicultura en Canarias. PEACAN (2014-2020). (5) APROMAR, 2015. (6) It is worth mentioning that the Cabildo de Tenerife (insular government) runs a trout farm in Aguamansa.

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

sector busted (Figure 2). Between 2000 and 2006 a fivefold increase in production was registered, while 34 companies were in operation. The sector peaked in 2009 with 13 952 tons of authorized capacity and 8 228 tons of real production. The sector faced a strong crisis, consequently the number of companies was reduced to 18. Fish is distributed to national, regional and international markets. At regional level, the fish is distributed to markets and fishmongers through traditional distributional channels. Modern channels are in hands of large retailers which distribute fish to hotels, restaurants and supermarkets. The Spanish continental market is the main destination of aquaculture products (80 %). USA is the main international destination for seabass and sea bream. Fish is distributed without transformation. Figure 1 — Weight and value at first sale prices of the aquaculture production.

40 000 9 000

35 000 8 000

30 000 7 000 6 000

25 000

5 000 €

20 000 Production Tons

4 000 1000 15 000 Value 3 000 10 000 2 000 5 000 1 000 0 0

Source: Government of the Canary Islands

Figure 2 — Authorised and real aquaculture production in the Canary Islands

18 000 16 000 14 000 12 000

10 000 Authorised (t) Tons 8 000 Real (t) 6 000 4 000 2 000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 1996 Source: PEACAN Processing and preservation of fish, crustacean and molluscs This activity consists basically in manipulating fresh and frozen fish for distribution, freezing, and production of cured and smoked fish. During the 1980s and 1990s the

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

Canary Islands possessed a large canning industry, which processed fish and shellfish captured by the Canarian fleet in the Canarian — Saharan fishing ground. These catches consisted of sardine, cephalopods and crustacean. In 2000, Morocco imposed strong restrictions of access to the fishing ground, and this determined the closure of the canning industry and a substantial reduction of the fishing fleet. It is also worth pointing out that the closure of the canning industry and the access problems to Moroccan waters, amongst other factors, have negatively affected the salt extraction activity. This traditional activity has almost disappeared in the archipelago. 1.1.2 Geographical distribution Fishery The port of Las Palmas (aka La Luz) is the most important in terms of fleet gross tonnage (GT). In fact, Las Palmas accounts for 78.5 % of GT. Santa Cruz is the second most important in terms of GT with 5.1 %. In terms of vessels numbers Las Palmas is also the most important with 9.3 % of the total, Arguineguin, Corralejo and Tarajal follow in importance with 6 %, 5 % and 5 %, respectively. The remaining 74.7 % of the vessels are distributed amongst 37 harbors. These figures provide an idea of the importance of the port of Las Palmas as a fishing hub. Due to its characteristics, Las Palmas is the ideal port for larger vessels. Las Palmas and Santa Cruz of Tenerife are also the designated ports in the Canary Islands for landings of third countries fleets. Fish harvested in third countries waters by the Canary Islands’ freezing fleet or by third countries fleet is landed frozen in La Luz and Santa Cruz. This activity has declined due to the conditions of the renewed fisheries partnership agreement (FPA) with Mauritania, which imposes restrictions to the landing of frozen fish in the Canary Islands harbors. Currently, this condition is being renegotiated and Las Palmas would receive again frozen fish from Mauritanian waters. This has been achieved in the context of a negotiation process widely supported by public authorities and stakeholders. The negotiation process includes technical support and EU’s economic support for improvement of Mauritanian landing facilities in the port of Nouadhibou. Regional fresh landings amounted 11 613 tons in 2015. Out of this figure 58.9 % of the fish was landed in diverse ports of the islands of Tenerife, La Gomera, El Hierro and La Palma (Province of Santa Cruz), while 41.1 % in the different ports of the islands of Gran Canaria, Fuerteventura and Lanzarote (Province of Las Palmas). Figure 3 shows the distribution of landings in the diverse islands of the Canarian archipelago. Figure 3 — Landings of fresh fish in the islands of the Canary Islands in 2015

El Hierro La Palma 1.541% 3.771% La Gomera 0.267% Gran Canaria 19.916% Fuerteventura 4.693%

Tenerife Lanzarote 53.212% 16.601%

Source: Consejería de Agricultura, Ganaderia, Pesca y Aguas.

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

Aquaculture The aquaculture activity is concentrated in four of the seven islands of the archipelago. The distribution of operating concessions is as follows: Tenerife (7 concessions), Gran Canaria (6 concessions), La Palma (1 concession), and Fuerteventura (1 concession). 1.1.3 Main socio-economic trends Fishery As observed in Figure 4, the fishing activity follows a positive trend in terms of volume of fresh fish. In contrast, frozen fish production has substantially decline. This negative trend can be explained by finalization of the fisheries partnership agreements with western African countries and the conditions of the agreement with Mauritania, which are being renegotiated. The Canary Islands fishing fleet has declined in number of vessels and GT due to an intense restructuration process under the auspices of the EFF. This process started in early 2000s and as a result by 2013 the fleet size had halved (7). Figure 5 shows the evolution of the fleet in terms of number of vessels in the period 2006-2015. Notice that in the period the fleet experienced a reduction of 29 % in terms of vessels. Figure 4 — Evolution of fish production in the Canary Islands

18 000

16 000

14 000

12 000

10 000

Tons Fresh 8 000 fish

6 000 Frozen fish 4 000 Total 2 000

0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: Consejería de Agricultura, Ganaderia, Pesca y Aguas.

(7) Popesco, I and J. Ortega-Gras. 2013. Fisheries in the Canary Islands. European Parliament.

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

Figure 5 — Evolution of the Canary Islands fishing fleet in the period 2006-2015 35 500 1 200

30 500 1 000

25 500

800

20 500

600 Fleet Tons 15 500 Vessels GT 400 10 500

5 500 200

500 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Source: MAGRAMA In the period 2008-2014 the CAGR analysis shows that the GVA of marine fishing decreased in 6.22 %. In the period 2009-2014 the CAGR of employment shows a negligible increase of 0.17 %. An analysis of a longer period, however, shows a substantial decrease in employment levels. In 1999 the fishing sector employed 2 900 people, by 2014 that figure had dropped in more than 100 %. The stability of employment levels in the last 7 years can be explained by the fact that the fishing activity may have absorbed idle workers from different sectors, especially from construction. Thus, the fishing activity has acted as an escape valve, alleviating the impact of the crisis on coastal communities. In relation to turnover it suffers a contraction of 6.22 % in the period 2008-2014. This negative effect may be explained by the decline of frozen landings due to restrictions of access to third countries waters. Aquaculture The result of the CAGR analysis applied to the period 2008-2014 indicates that the activity is growing in terms of GVA at a rate of 19.73 %. It is worth mentioning that 2008 was the year where the restructuration of the sector begun and, consequently, a reduction of the size of the sector in terms of number of operating concessions took place. In order to have a more comprehensive picture of the evolution of the activity it is worth observing Figure 2. The first 12 aquaculture projects were approved in 1994 and by 1998 the sector busted. Between 2000 and 2006 a fivefold increase in production was registered, while 34 companies were in operation. In 2008, and coinciding with the economic crisis, the sector faced a shortage of financial resources. It imposed a change in the commercial strategy and fish of smaller size (less than 300 gr.) started to be sold to retailers. The sector peak in production in 2009 reflects this fact very well. However, this strategy did not alleviate the financial distress of the sector and a thorough restructuration of the industry took place. In fact, the number of companies halved and by 2013 only 18 companies were operating. These are currently in hands of three large Spanish aquaculture groups. In terms of employment the activity employs 199 people. The CAGR analysis indicates a decrease of 2.35 % in the period 2009-2014. This negative trend is related with the reduction of the number of operating concessions due to a thorough sector restructure. In terms of turnover, the CAGR analysis indicates that the sector grew in 4.25 % in the period 2008-2014. Production only grew at a rate of 1.6 % during the period. Thus turnover growth is explained basically by the increase in the average price of the ton of fish.

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

Processing and preservation of fish, crustacean and molluscs The CAGR analysis shows that GVA experienced a reduction of 6.22 % over the period 2008-2014. This contraction can be explained by the reduction of the frozen landings, which had an impact on the companies devoted to handling frozen fish for distribution. As previously commented, the fish processing industry in the Canary Islands is losing industrial capacity since early 2000. In the archipelago, the predominant fish processing activities are not intense in technology but are intense in labour. This could explain why employment in this subsector sector falls in 2.22 % only. Finally, turnover decreases in 6.22 % following the negative trend in fish production. 1.1.4 Preliminary findings on growth potentials Fishery Overexploitation of fishing resources is likely the main threat for the fishing sector. There is consensus amongst small scale fishermen that recreational fishing is threatening the sustainability of the fishing activity. Currently, it is estimated that recreational fishing is carried out by around 20 000 recreational fishermen. This is reported by the fishing sector and other actors as a serious problem of competition for resources and space. Besides this it is thought that part of recreational catches is illegally traded. The recently implemented system for controlling fish distribution seems effective in counteracting this problem. In addition, properly called illegal, unreported and unregulated (IUU) fishing is also taking place in the archipelago. The Monitoring, Control and Surveillance (MCS) apparatus seems unable to control these issues. Actions are being conducted to address this problem e.g. aerial vigilance using drones. Since early 2000s the delayed access to the Canarian-Saharan fishing ground has been affecting the sustainability of the fishing activity for both harvesting and processing phases of the fishing sector. The decrease of the production of frozen fish reflects this situation very well (see Figure 4). In turn, the FPA with Mauritania obliges the vessels concerned to land fish in that country. This also affects the fishing activity and related activities in the fisheries value chain. The sector also claims for larger quotas of Bluefin tuna, which is a species managed by ICCAT. The quota allocated by Spain to Canarias is of 140 tons. Generational replacement in the fishing industry is also an issue that is emerging as a problem for the sector and threatening its future. In the other hand, the activity of pesca-tourism arises as an opportunity to diversify the small-scale fishing activity. The FLAG of Gran Canaria, for example, has conducted projects on pesca-tourism and results are promising. The definition and scope of the activity is being adopted by the national legal framework. In relation to potential resources deep-sea species such as black scabbard fish, which is an appreciated species in Portugal, may provide alternatives for the small-scale fishing activities. Aquaculture The Strategic Plan of Aquaculture of the Canary Islands (PEACAN) has established the objective of producing 10 835 tons of fish by 2020. This would mean an increase of production of 41.66 % in relation to 2015. Growth expectations are based on the authorisation of new concessions, which are pending approval, and on possibilities to introduce species such as corvina. This is one of the species with better possibilities. In fact, the University of Las Palmas de Gran Canaria (ULPGC) has proved its technical viability. The starting of commercial production is facing strong administrative barriers due to environmental considerations. It is worth mentioning that interviewees considered that the period to obtain new concessions is too long (4-5 years) due to the long administrative process, which straddles different government departments. Nevertheless, future expansion of production may have positive impacts on employment. Scientific and technical developments conducted in the field of R&D in the archipelago may also allow improving economic margins.

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

Processing and preservation of fish, crustacean and molluscs Access conditions to waters of western African countries are being renegotiated so it is possible that the processing and preservation activity may recover up to a certain extent. However, interviewees point out that regional consumers have preference for unprocessed fish so it would be hard to build a strong processing industry. Since the end of the canning industry the demand for canning products has been satisfied with imports from third countries. Thus, it seems no possible to reconstruct the canning industry, which was large and competitive in its golden days.

1.2 Desalination of sea water 1.2.1 Overview The seawater desalination activity started in 1964 in the island of Lanzarote. This plant was the first urban seawater desalination plant in a European country, producing 2300 m3/day. Nowadays, 320 plants scattered in five islands of the archipelago: Gran Canaria, Tenerife, El Hierro, Fuerteventura and Lanzarote. The production of public and private plants is around 200 hm3 per year, being the installed capacity around 219hm3. In general, 32 % of water available in the Canary Islands is produced in the seawater desalination plants (Figure 6). In the eastern islands, the growth of tourism has encouraged the installation of these plants in spite of the high costs of energy, which accounts for 15 — 20 % of the electricity consumed in the archipelago. In turn electricity represents 20 % (8) of the production costs of plants. It is worth mentioning that the sector aims to be efficient and reduce energy consumption so technologies such as reverse osmosis have been widely adopted in the archipelago. Urban and tourism water consumption utilize 82.65 % of the desalinated seawater. Agrarian and industrial sectors utilize 10.30 % and 7.05 % of the production, respectively. Figure 6 — Evolution of the Canary Islands production of water in the period 1978-2012 in HM3/YEAR 500

400 Ground waters 300 Surface waters 200 Desalination Depuration 100

0 1978 1986 1993 1997 2004 2012

Source: Consejería de agricultura, ganadería, pesca y aguas

1.2.2 Geographical distribution The activity is located in Gran Canaria, Tenerife, El Hierro, Fuerteventura and Lanzarote. The province of Las Palmas (islands of Gran Canaria, Fuerteventura and Lanzarote) concentrate around 70 % of the production of the public desalination plants. The dependency on desalinated sea water varies in the diverse islands of the archipelago. Fuerteventura and Lanzarote are highly dependent on desalination, being 90 % of the water supplied desalinated in the local plants. In the other hand, La Gomera and La Palma do not desalinate seawater, being ground water the main source of this resource. In turn, in Gran Canaria, Tenerife and El Hierro water supply accounts for 52 %, 39 %

(8) Plan de ECOGESTIÓN en la producción y distribución de agua de Canarias (2014-2020). ITC.

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and 9 % of water supplied in each island, respectively. The growth of the desalination sector has partially alleviated water scarcity, while allowed to accumulate considerable experience in the production process. It has also allowed tourism growth and development in arid areas. 1.2.3 Main socio-economic trends Around 1300 people are employed in the desalination sector. The CAGR analysis shows a positive trend in GVA of 1.45 % in the period 2008 - 2014. In turn employment in the sector was maintained rather steady (0.09 %). Turnover experienced a contraction of 2.62 % in the same period. The increase in GVA can be explained by the modernization of the industry, basically based on wide utilization of reverse osmosis technologies, aimed at efficiency and reduction of energy costs. 1.2.4 Preliminary findings on growth potential Concerns on electricity consumption produced by electric plants powered with fossil energy have encouraged the development of initiatives to use wind energy in the production process. The ITC has demonstrated the viability of desalination plants powered by inshore wind energy. In general, there are many local initiatives to use wind energy in the production process aimed at reducing the costs and environmental impact of traditional energy sources. There are many examples of desalination plants powered by their own wind mills e.g. Corralejo. These initiatives are currently facing constrains in the form of recently introduced taxes on self-consumption, which substantially increase the cost of production in these plants. The desalination sector is expected to growth. In fact, the Hydrological Plans of the Islands of Gran Canaria, Tenerife (9), amongst others, aim at increasing the supply of desalinated seawater, while ensuring its quality. Special attention is paid to the supply of desalinated water to areas at medium and high altitudes. This will require technical and economic viability studies since costs are expected to be high. It seems that the main constrain for the future of the sector is the dependency on electricity generated from fossil energies. Current experiences with wind energy are demonstrating the technical viability of desalinating plants powered with inshore wind energy. The Instituto Tecnológico de Canarias (ITC) and Plataforma Oceanográfica de Canarias (PLOCAN) are also conducting research on marine energies (offshore wind and wave energy) which will also provide alternatives to energy supply. Finally, it is worth mentioning that the broad water sector faces problems with management of water saving and treatment of waste water, having the latter potential consequences on the marine environment. General water issues are beyond the scope of this report and may require ad hoc studies.

1.3 Maritime transport 1.3.1 Overview Maritime transport is a key factor in economic and social development in the Canary Islands. Large oceanic routes between Europe and Africa, as well as the routes to the ports of Central America and South America pass through the Canary Island’s waters. The Canary Islands, for its insular fragmentation, depends on maritime transport for its communications, both outside and among the islands. In this sense, density of maritime traffic is really high between the islands of Tenerife and Gran Canaria and with Fuerteventura Island (10). In Canarias both air and maritime transport should be considered complementary rather than substitutive. The choice of one or the other will depend on several factors such as

(9) Hydrological Plans of Gran Canaria, Tenerife, Lanzarote and El Hierro. (10) http://www.marineplan.es/es/informes/INFORME%205_SUBDIVISION%20CANARIAS_17_11_10.p df.

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the nature of the unit traffic (passenger or freight), the purpose of travel (tourism, business, etc.), the distance, and time of transport, global rates and location (11). In 2015, the Canarian ports moved nearly 8 million of passengers in the ports of Santa Cruz de Tenerife and Las Palmas (Figure 7), which represents an historic maximum value in the context of the positive trend. However, the Canarian ports moved 24 000 vessels (Figure 8) and 36 million tonnes of freights in 2015 (Figure 9), which represent 16 % and 31 % less than in 2007, respectively. Figure 7 — Passenger maritime transport for Las Palmas de Gran Canaria and Santa Cruz de Tenerife ports from 1998 to 2015 9 8 7 6 5 4 3

Passengers (Millions) 2 1

2001 2010 1999 2000 2002 2003 2004 2005 2006 2007 2008 2009 2011 2012 2013 2014 2015 1998 Source: ISTAC Figure 8 — Vessel transport for Las Palmas de Gran Canaria and Santa Cruz de Tenerife ports from 1998 to 2015

40 000

35 000

30 000

25 000

20 000 Vessel 15 000

10 000

5 000

Source: ISTAC

According to data compiled by the Canary ports9, the regional ports moved nearly 275 000 passengers in 2013. In 2015, Canary Ports showed an increase of 10 % of the incomes due to an improvement in fees collection, which meant 10 million Euros9.

(11) http://www.gobiernodecanarias.org/copt/documentacion/transportes/ponencias/subcomision.pdf.

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Figure 9 — Freight transport (millions of tonnes) (including liquid and solid bulk, general cargo, containers, supplies and fresh fish), for Las Palmas de Gran Canaria and Santa Cruz de Tenerife ports from 1998 to 2015

Source: ISTAC 1.3.2 Geographical distribution The main routes of interoceanic maritime traffic of the Canary subdivision area are: Route to (and from) the Strait of Gibraltar; route to Finisterre; route to the North Atlantic; route to the South Atlantic; route to South Africa.

Moreover, it is important to mention that there are over 75 monthly shipping services connecting the Canary Islands with the countries of West and North (12) Africa. Morocco, Mauritania, Senegal and Cape Verde are the major maritime connection to the Canary Islands (13). In the case of Mauritania, Canary Islands are one of its most important suppliers, with increased exports of 5.81 % in 2014 (compared to 2013) (14). On the other hand, there is also a variety of interregional traffic routes among the islands:  the island of Lanzarote has three maritime routes linking with the rest of the islands;  the island of Fuerteventura has three points linking with the rest of the islands;  Gran Canary has six shipping routes linking with the rest of the islands;  the maritime communications network, which counts the island of Tenerife, amounts to nine lines;  La Gomera has four regular shipping lines with the rest of the islands;  La Palma has five regular shipping routes with the rest of the Canary Islands;  El Hierro has five shipping routes with the rest of the islands with a single link port, being the point of departure the Port of La Estaca (municipality of Valverde); 1.3.3 Main socio-economic trends In the Canary Islands, the maritime transport sector comprises two subsectors, passengers transport in ferries and coastal freight water transport. The CAGR analysis shows that in the period 2008-2014 both activities experienced a contraction of 0.87. In relation to employment, passengers transport showed a positive trend of 3.21 % in the period 2008-2014. In the other hand, employment in freight water transport decreased

(12) From the database business portal AFRICA infomarket: www.africainfomarket.org. (13) https://www.camaratenerife.com/noticia.cfm?id=226. (14)http://www.proexca.es/Portals/0/Documents/EstudiosMercado/Africa/Ficha%20Comercial%20C anarias-Mauritania%202014.pdf.

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in 5.77 %. Finally, turnover in this period decreased for both subsectors in 2.55 %, respectively (15). 1.3.4 Preliminary findings on growth potential According to the Maritime Cluster 2013-2016 Strategic Plan, the growth potentials of the activity for the next years seems to be positive. The main objective of the plan will be transforming Canaries into the logistics centre and the distributor in the Mid-Atlantic. It is worth mentioning that the Transport Strategic Plan for Canaries is in course of preparation.

1.4 Ports 1.4.1 Overview There is no doubt that shipping (maritime transport and ports) is a key activity for the Canary Islands in terms of economic and social development. In the Canary Islands, there is an extensive network of commercial, fishing and sports activities dependent on ports. The Port of La Luz (Gran Canaria) and the port of Santa Cruz (Tenerife) are leaders amongst Spanish ports regarding passengers and goods transport. Notably, the Canary Islands ports are a key and strategic refuelling and ship repairing station in the Middle Atlantic, for ships based on all continents, especially on Africa and, in recent decades, for Asia. Maritime connections with Africa include destinations to: Angola, Benin, Cape Verde, Cameroon, Congo, Côte d'Ivoire, Gabon, Gambia, Ghana, Guinea Bissau, Guinea Conakry, Liberia, Mauritania, Morocco, Nigeria, Senegal, Sierra Leone, South Africa and Togo. Canarian ports include spacious and modern basins with large storage and operation capacity, with multiple container and rolling traffic terminals, with a large storage refrigerator capacity and excellent facilities for passenger traffic and cruise ships. The port infrastructure is completed by a wide variety of repairing companies which cover both technically and safety demand from international companies. In relation to bunkering, the Port of Las Palmas is a great Atlantic gas station and the first of Spain in bunkering (1 795 858 tonnes in 2014). This port has a large storage capacity, with an extensive network of pipelines for dock supplying and a large fleet of barges and tankers. The port of Las Palmas develops an important activity of maintenance of oil platform during technical stops from South Africa. Finally, it is worth mentioning that during the last years the Port Authority of Santa Cruz de Tenerife and Las Palmas carried out several dredging projects which are localized and detailed in the following web platform: http://www.emodnet-humanactivities.eu/view-data.php. 1.4.2 Geographical distribution There are two port authorities, Las Palmas and Santa Cruz de Tenerife. The main ports are located respectively in the sixth and tenth positions in the national ranking of total traffic. The Port Authority of Las Palmas manages the following ports (16):  The port of Las Palmas, which is the most important of the island and develops commercial, transport and fishing activities.  The port of Arrecife (Lanzarote), located in the capital of Lanzarote, was born as a fishing port. Tourism industry has transformed this port as the third port of the Canary Islands in goods. Its main traffic is containers and sightseeing cruises (one of the first in the Eastern Atlantic). Port expansion projects concern the improvement of infrastructure for containers, cruise tourism and nautical sports.

(15) A document of key importance for estimating the economic variables of ports for this study is: de Rus, Gonzalez and Tovar. Impacto económico del Puerto de las Palmas. 2009. Civitas. (16) http://www.palmasport.es/.

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 The port of Salinetas (Gran Canaria), located on the east coast of the island, about 10 miles south of Puerto de Las Palmas. It specializes in receiving liquid bulk.  The port of Rosario (Fuerteventura), first port area of the island of Fuerteventura, and it is located in its capital. It has the infrastructure for cruise ships and goods. The Port Authority of Santa Cruz de Tenerife, one of the 28 ports, which make up the Spanish state-owned port system. It currently manages the ports of Santa Cruz de Tenerife, Santa Cruz de La Palma, Los Cristianos, San Sebastian de La Gomera and La Estaca, with a maximum draught of 23, 6.7, 6.9, 4.8 and 4.8 meters, respectively (Annual Report, 2014) (17). The ports of the Port Authority of Santa Cruz de Tenerife include (18):  The port of Santa Cruz de Tenerife has always been regarded as a service station in the middle of the Atlantic, as well as a renowned port for cruise tourism. Currently, this port is characterized, among other things, by the specialization of its moorings in each of its four docks, dock and mooring of dangerous goods. The Port of Santa Cruz de Tenerife is a commercial passenger, fishing, and sport port of the city of Santa Cruz de Tenerife. It's in the top 10 of Spain. It is managed by the Port Authority of Santa Cruz de Tenerife and it is the main port of the island, followed by the Port of Los Cristianos. Located in the Bay of Santa Cruz is divided into four docks: Los Llanos, Anaga, fishing dock and East Dock. This port, along with the other four of the province (Port of Los Cristianos, Puerto de Santa Cruz de La Palma, Port of San Sebastián de La Gomera and Puerto de La Estaca) are under the administration of the Port Authority of Santa Cruz Tenerife.  The port area of Los Cristianos (Tenerife) is the first port of Spain in terms of passenger traffic due to the links offered by the ports of San Sebastián de La Gomera, La Estaca on the island of El Hierro and Santa Cruz.  El Puerto de Santa Cruz de La Palma, with 1043 meters berthing consists of a multipurpose dock with container terminal, with four self-propelled cranes, a dock for freight traffic in general and traffic of fruits for export.  The port of San Sebastián de La Gomera is presented as a dock protected by a breakwater 400 meters long with two distinct sections.  The port of La Estaca (El Hierro), has 250 meters berthing and ready for passenger traffic and ro-ro cargo. It has a mobile ramp, storage shed, boathouse and a maritime station. Moreover, the Port Authority of Santa Cruz de Tenerife has five sports marinas located in port areas under administrative concession since 1987. On the other hand, the Canary regional ports (19) is a public company attached to the Ministry of Public Works of the Government of Canarias, which manages about 50 ports of general interest, port facilities, shelters, seawalls as well as sport ports exploited under administrative concession (20). The planning, operation and management of the port system is competence of the Canary ports. In Lanzarote, there are 4 major ports of regional management: Playa Blanca, Caleta de Sebo and Orzala, which develop commercial, fishing and sports functions. There is fourth port exclusively devoted to sport functions, the port of El Carmen. In Fuerteventura, there are three ports of regional interest: Corralejo, Gran Tarajal and Morro Jable, with commercial, fisheries and sports functions. In Gran Canaria, there are 3 autonomous ports of great importance, which develop industrial-port functions: Arinaga, Arguineguin and Santa Agueda. There are also 11 minor ports. In Tenerife, there are 4 ports of regional interest with special importance due to fishing and sport activities: San Juan, Galleta, Cruz, and Garachico.

(17) http://www.puertosdetenerife.org/index.php/en/tf-port-authority. (18) http://www.puertosdetenerife.org/index.php/es/tf-autoridad-portuaria. (19)http://puertoscanarios.es/wpcontent/uploads/2016/05/Libro%20Puertos%20Auton%C 3%B3micos%20Canarios_1985_2015.pdf. (20) http://puertoscanarios.es/.

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On the island of La Gomera, there are two ports of regional interest, the port of Playa de Santiago in Alajero and the port of Vueltas in Valle Gran Rey. In both ports fishing activities and nautical sports are carried out. Finally the port of La Estaca (El Hierro), is the link with the ports of the other islands. La Restinga in turn is the port for recreational fishing. 1.4.3 Main socio-economic trends According to IAEC (2014) (21), the unloading of goods destined for the internal market showed an increase of 2.9 % and 2.0 % for Las Palmas and Santa Cruz de Tenerife ports, respectively. In 2014, Gran Canaria’s ports recorded similar data of unloading of goods than the previous year (0.4 %) (Table 4). The lower volume of unloads is due to the decline of fuel consumption (30.6 %), in a context of decrease of the ship activity at the port of Las Palmas. According to Castillo-Manzano and López-Valpuesta (2012) (22), Las Palmas port activity produced 31 710 euros of GVA per discharged tonne, 0.50 jobs per discharged tonne and 63 740 euros/job. The CAGR analysis shows that in the period 2008-2014 the subsectors warehousing and storage services, services incidental to water transportation, and cargo handling experienced a small fall of 0.87 % in terms of GVA. In turn, employment and turnover increased in 1.37 % and 0.25 %, respectively. Table 4 — Discharged tonnes (millions) registered in ports of Gran Canaria, Tenerife, Fuerteventura, Lanzarote, La Palma, El Hierro and La Gomera islands from 2010 to 2014 Gran El La Year Canaria Tenerife Fuerteventura Lanzarote La Palma Hierro Gomera 2010 20 685 14 841 763 1 206 808 98 224 2011 23 105 14 441 890 1 287 800 108 220 2012 22 744 13 598 935 1 156 772 83 185 2013 19 735 12 187 905 1 200 741 63 159 2014 19 810 11 460 975 1 395 751 50 150 VAR. 13- 14 0.4 -6 7.7 16.2 1.4 -14.3 -5.6 VAR. 10- 14 -15 -22.8 27.7 15.7 -7 -48.7 -33.2 Source: Modified from IAEC (2014)

In 2014, Fuerteventura, Lanzarote and La Palma Island were the Canarian ports that recorded higher increases in unloading of goods in comparison with previous years: 7.7 %, 16.2 % and 1.4 %, respectively. However, El Hierro and La Gomera Island ports recorded decreasing values of goods than previous year: -14.3 % and -5.6 %, respectively. 1.4.4 Preliminary findings on growth potential The growth potentials of the activity for 2020 are included in the Ports Strategic Plan, which includes the following objectives for Canary Ports:  improving the port infrastructures. i.e. Port of La Luz and future demands of bunkering;  improving human resources with better training;  promoting the autonomous ports at the interisland transport network;  improving the shelter conditions and safety in the manoeuvres;  port spatial planning;

(21) Informe anual de economía canaria . Available at: http://www.ccelpa.org/informe- anual/IA2014/pdf/indicadores/14-2014.pdf. (22) Castillo-Manzano, J.I., López-Valpuesta, L. 2012. Papeles de economía española, N N.º 131. ISSN: 0210-9107. ‘La economía del transporte marítimo y los puertos’.

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 increasing the supply of commercial berths (docks) and sports (pontoons);  focusing efforts on a limited set of ports strategically selected according to their location and future perspectives. Moreover, the growth potentials for the Port Authority of Las Palmas seem to be positive due to negotiations with Paraguay and Uruguay, which seek to turn the port into a key hub of goods, especially grains, linking South America with Western Africa. It is also worth pointing out that the Canary Islands are becoming a hub for humanitarian aid to less favoured regions in Africa. The Canarian ports are already playing a key role for these activities.

1.5 Ship building 1.5.1 Overview Shipbuilding is an activity that has declined in the Canary Islands. According to interviewees, there is no an activity of construction of steel vessels. The only ship building activity surviving is construction of wooden vessels (carpintería de ribera). The reduction of the fishing fleet may have determined the decline of this activity, which is still persevered in a few harbours of Lanzarote, La Gomera y Gran Canaria. In 2013, the GVA of the activity achieved 1.13 million Euros. In turn, the activity employed 32 people and produced a turnover of 4.3 million Euros. 1.5.2 Main socioeconomic trends The CAGR analysis shows that in the period 2008-2013 the GVA of the activity fell in 31.15 %. In turn employment and turnover declined in 24.97 % and 18.11 %. It is evident that the activity is substantially declining in the archipelago. As explained previously the decline of the fishing activity may have determined this situation. 1.5.3 Preliminary findings on growth potential Ship construction is substantially declining as an economic activity. It is not clear whether this activity will emerge again. The construction of larger steel vessels is not a competitive activity due to the competition of shipyards in other regions. In relation to wooden vessels it is regarded as a traditional activity and there are attempts to preserve the knowledge of the marine carpenters. During the last four years the Insular Government (Cabildo) of Lanzarote has been conducting initiatives to preserve the cultural values of the activity. Ship construction of fibre glass vessels for recreational activities may emerge as an economic opportunity due to the expansion of nautical activities.

1.6 Ship repair 1.6.1 Overview During the first decade of the 2000s the activity of ship repairing suffered the impact of the access limitations to the Canarian-Saharan fishing ground and to the waters of other African nations (see chapter 2). The inspection and repair of oil platforms have emerged, however, as market niches and are generating substantial income and employment in the ports of Gran Canaria and Las Palmas. This activity is oriented to provide inspection and repair services to oil platforms based on western African waters, e.g. there are 180 platforms in the Gulf of Guinea. Platforms need to pass revisions every five years. According to interviewees the inspection of a small platform may cost 3 - 5 million Euros, while the larger ones may cost 30 million Euros. Besides this the platform may need repair and have to pay port charges. This activity may employ around 200 — 300 people, depending on the size of the platform. There is a lack of human technical capacities with proper certification to take advantage of this opportunity. The federations of metal entrepreneurs such as Federación del Metal de Las Palmas (FEMEPA) and Federación del Metal de Tenerife (FEMETE) are undertaking initiatives to incorporate workers into the

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new market niche, by training and certifying them. This is becoming an opportunity for recycling idle workers with experience in other industrial sectors. In 2013, the ship repair activity, which includes oil platform revision and repair, reached a GVA of around 73 million Euros. It employed 1075 people and reached a turnover of approximately 160 million Euros. The sector comprises large shipyards located in the ports of Las Palmas and Tenerife and a large amount of micro-enterprises (workshops). According to ISTAC data, in the period 2008-2015 the sectors grew steadily in number of enterprises. (Figure 10). Figure 10 — Evolution of the ship repair sector in terms of enterprises

Source: ISTAC Geographical location This is carried out in the port of Las Palmas (La Luz) and Santa Cruz of Tenerife. These are the two largest ports (see Ports chapter) and have ideal conditions and facilities for the repair of large marine craft. Most of the platforms are being repaired in Las Palmas port. 1.6.2 Main socioeconomic trends The CAGR analysis shows that during the period 2008-2013 the activity grew in 4.13 %. Employment in turn increased in 1.22 %. In relation to turnover, the sector grew in 5.08 %. As it can be seen all the variables showed an increase over the period of analysis. This growth is explained by the presence of the oil platform revision and repair in the ports of Canaria. 1.6.3 Preliminary findings on growth potential Besides the promising oil platform activity, repair of all kind of vessels constitute an opportunity for the Canary Islands. Due to its strategic position in the Atlantic it is expected that the maritime routes passing by the region will increase in next years. This is regarded as an opportunity for the naval industry. It is worth pointing out that the services to oil platforms have slowdown in the last months due to the low price of the oil barrel. So the activity even being promising is subject to oil price fluctuations. Repair and construction of leisure and sport boats are also emerging opportunities for the archipelago. In fact, interviewees pointed out that a large Italian firm specialized in yacht construction and repair has recently acquired a shipyard in the Port of Tenerife. It is worth pointing out that the Canary Islands offer special fiscal facilities (ZEC), which are provided to attract international investors into the archipelago.

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1.7 Coastal and cruise tourism 1.7.1 Overview The combination of the trade winds, which regularly hit the Canary archipelago, a rugged orography and cold sea currents, give the islands a unique climate, characterised by gentle year-round temperatures, ranging from 18ºC in winter to 24°C in summer. Good weather, high biodiversity, large amount and variety of natural areas, 1583 kilometers of coast, 257 kilometers of beaches, natural beauty and cultural attractiveness made Canary Islands the main tourism destination in Europe. In fact, and according to statistics of ISTAC (23) and FRONTUR (24), the main reasons for going to Canary Island are sun, weather and beach. But in the recent years other reasons are taking on importance, such as security, cultural supply, rural tourism, leisure parks, and adventure and sport tourism. Tourism is the main economic activity in the Canary Islands. In 2013 and 2014, the tourism GDP reached 12 550 and 13 032 million Euros, respectively. In 2014, tourism generated about 31.4 % of the total GDP of the region. The Canary Islands tourism sector accounts for 30 % of the Spanish tourism GDP. In 2014, the number of tourists was 12.7 million and in 2015 reached 13.3 million. In terms of employment, tourism represented the 34.5 % over the total employment, i.e. around 300 000 employments. According to the IMPACTUR report (25), the importance of tourism is explained by its direct and indirect effect, i.e., tourism creates 44.6 indirect jobs per 100 direct jobs. It is worth mentioning that the transit of people between Cape Verde and the EU Outermost Regions requires a visa. This fact may limit mobilization of people between these regions. This has implications for tourism and other activities such as training of Cape Verde workers. Cruise tourism in the Canary Islands is also highly relevant. In fact, in 2015 the number of cruise passengers was 2.19 million (16.4 % over the total number of tourists). It is worth commenting that the sector showed resilience to the worst years of the crisis and its growth was sustained (26). This growth can be explained by the moderate weather of Canary Islands, even in winter, together with the political stability and security. Cruise tourists are usually people with medium or high income, expending around 44 €/day, which is higher than the average tourist expenditure. USA is the main country of origin of cruise tourists. They generate an important economic impact on the islands. The evolution of the tourism and leisure activities in the littoral of the Canary Islands can be divided into three main phases. The first phase, or exploration phase, goes from 1960 to 1985 and the touristic offer was mainly based on sun and beach, with apartments as main accommodation (27). The second phase, or growth phase, took place in the period 1985- 2000, with a diversification of the touristic offer including golf, spas, and other facilities, and accommodation in high quality apartments, apartment — hotels and hotels. The third phase started in 2000, namely the consolidation and maturity phase, it is characterized by the offer to specialised segments (marinas, adventure tourism, amongst others). 1.7.2 Geographical distribution The Canary archipelago is composed of seven islands (Lanzarote, Fuerteventura, Gran Canaria, Tenerife, La Gomera, La Palma, El Hierro). In all islands tourism is an important economic activity, but the kind of tourism differs from island to island. In general, in all

(23) http://www.gobiernodecanarias.org/istac/. (24) http://www.grancanaria.com/patronato_turismo/Estadisticas.23492.0.html. (25) IMPACTUR (2014). Estudio Impacto Económico del Turismo en Canarias. Exceltur. Gobierno de Canarias. It should be noted that the figures provided in the IMPACTUR report include also estimate of non-maritime activities directly linked to coastal tourism such as travel agencies, souvenir stores, car rentals; and others indirectly linked to the tourism sector e.g. energy, water, consultancy services, etc. The inclusion of these data in the IMPACTUR report explains the different share of the tourism sector in the overall regional economy. (26) Estudio del mercado del turismo de cruceros. EDEI. 2013. (27) Formación para la Creación, Consolidación y Reconversión de Empresas hacia sectores relacionados con el turismo sostenible del Litoral. Instituto Tecnológico de Canarias. 2013.

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islands weather and sun are the reasons behind visiting the islands. The kind of tourism, however, depends on the particular features of the island: for Fuerteventura and Gran Canaria the main attraction is the beach, and for Lanzarote, Tenerife and La Palma the main attraction is the landscape. Other reasons for visiting the archipelago are quietness, rest and relax. Figure 11 shows the distribution of tourist shares amongst the islands in 2015. Notice that Gran Canaria and Fuerteventura are the islands with higher number of tourists. Cruise tourists distribution amongst islands is represented in Figure 12 Tenerife and Gran Canaria concentrate the largest share of cruise tourists (79 %). Las Palmas is the port base for most of the movements of cruisers in the Canarian archipelago. Figure 11 — Distribution of tourists by island

Source: www.turismocanarias.com Figure 12 — Distribution of cruise passengers by island

Source: www.turismocanarias.com 1.7.3 Main socio-economic trends The number of tourists (Figure 13) decreased at the beginning of the crisis, in 2008 and 2009. In 2010, the number of tourists started to increase again. The increases of the last years are especially due to the socio — political situation of others touristic destinations, such as Egypt, Turkey and Tunisia (28). In parallel, the average expenditure by tourist

(28) http://www.europapress.es/islas-canarias/noticia-exceltur-cifra-800000-turistas-captados- canarias-egipto-turquia-tunez-20160419130832.html.

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has increased from 2006 to 2015. The gross domestic product (GDP) of tourism in the Canary Islands has been increasing over the last years. In fact, in 2013 and 2014 the tourism GDP increased in 3.8 %. This situation coupled with the economic crisis has strengthened the role of tourism in the Canary Island economy. However, the investment on tourism had decreased from 2008 to 2013 due to the economic crisis. In 2014, this decreasing trend changed. Private investment in tourism followed a trend similar to public investment until 2013. In 2014, however, public investment started to recover. In relation to coastal tourism, 8.2 million tourists have the littoral as a main destination when visiting the archipelago. It means around 50 % of annual tourists. In the coastal tourism sector, the CAGR analysis of GVA shows that in the period 2008- 2014 the subsectors of accommodation and food and beverages increased in 0.61 %. The analysis of employment in these subsectors slightly decreased in 0.91 %. In the period 2008-2013, turnover increased in 1.18 % in these two subsectors. In turn, GVA in air transport (29) grew in 0.61 %, while employment and turnover decreased in 8.99 % and 7.43 % respectively. The GVA of the cruise tourism subsector decreased in 0.87 % in 2008-2014. In relation to employment, cruise tourism grew in 3.21 % in the same period. Turnover of cruise tourism dropped in 2.55 %. Figure 13 — Number of tourists in Canary Island

Source: Frontur 1.7.4 Preliminary findings on growth potential A Strategic Plan for 2012 — 2016 is in place and the following strategies are set up: improve the marketing plan, improve the touristic culture, improve the touristic information and knowledge, encourage the training of staff, diversify the touristic supply, improve the internal and external connections (by air or sea). Additionally, the ‘Canary Island Smart specialization strategic: 2014 — 2015’ emphasizes the importance of sustainable tourism, with a low CO2 emissions, sustainable mobility, energetic efficiency and improvement of touristic infrastructures. The Canary Island government commits to sustainable growth and maintains the tourism leadership. Three priorities are set in the ‘Europe 2020 action plan in the Canary Islands’ for the smart leadership in tourism:  Strengthening competitiveness of destinations. Role of the Canary Islands as the leader in tourism in the EU.  Research and innovation to improve the competitiveness and productivity of the touristic product the Canary Islands.

(29) Share corresponding to coastal tourism.

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 Improving the competitiveness and productivity of the Canary Islands touristic products.  Touristic product diversification. In relation to coastal tourism it seems that diversification of the current touristic offer may allow growing of the sector in terms of economic returns and employment. Traditionally, the offer has been based on the model of ‘sun and beach’. In the last two decades, however, new modalities of exploiting the coastal potential have emerged. For example, whale watching has developed in the South-East coasts of Tenerife and in Gran Canaria. In the beginning, the activity started to boost without proper regulation. However, this situation has changed due to the creation of regional and national regulatory frameworks that limit the number of operators and vessels; regulate the activities of observation, while ensuring conservation of these marine mammals. Nautical tourism is also another important branch of the coastal tourism. Other recreational activities taking place in the sea are increasing e.g. sport fishing, diving, surf, sailing, rowing, amongst others. These activities attract tourists and are providing opportunities for coastal communities besides the traditional accommodation and food and beverage subsectors. Specialized shops and schools of sailing and surfing are emerging in diverse points of the littoral. In turn infrastructures have been developed such as the Puerto Deportivo of Las Palmas which provides 1 250 moorings. The Canary Islands offer a total of 7 226 mooring distributed in 32 sport harbors. The archipelago is becoming an international reference in nautical tourism. In fact, international nautical events are taking place in the islands. It faces, however, some constrains such as lack of mooring for boats of small size (owned by local people) because of the high international demand of mooring for larger vessels. In turn, it seems that repair and refitting capabilities of fibre glass craft cannot satisfy the growing demand. It is worth mentioning the initiative ‘Ciudad del Mar’ promoted by the Municipality of Las Palmas of Gran Canaria, which attempts to impulse sustainable economic and leisure activities associated to a responsible use of the littoral space. Fairs and events such as FIMAR (international fair of the sea) and being carried out in order to generate value added to the use of the coasts in Las Palmas. ‘Ciudad del Mar’ is an initiative unique in Spain. Cultural tourism is another important branch of coastal tourism that has started to develop. The Salt Museum in Tenefé is an example of an attraction that attempts to show the value of salt extraction, an old economic activity which is disappearing in the archipelago. Other forms of cultural tourism offer the tourist the possibility of discovering traditional activities such as fishing, and small-scale gear construction. The activity of pesca-tourism is receiving particular attention and is regarded as an opportunity to diversify coastal tourism and the small-scale fishing activity. The FLAG of Gran Canaria, for example, has conducted projects on pesca-tourism and results are promising (pers. comm.). The legal definition and scope of the activity is being adopted by the national legal framework. As described above, many possibilities to diversify the touristic coastal offer are being developed. They have good perspectives to generate direct and indirect employment. They also have the potential to increase economic returns and investments. Many tradeoffs with other uses of the marine and littoral space will emerge. In turn, the growing number of tourists and uses of the littoral will increase demand of all kind of services specially water and energy supply in a context of scarcity of water and high dependency on fossil energy. The strategies will need to pay special attention to these trade-offs.

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1.8 Possible impacts of climate change in the Canary Islands (30) It has been reported that an increase in temperature has taken place in the last six decades, encompassed by a reduction of average rainfall. The rise of temperature may cause severe impacts on biodiversity and desertification, amongst other impacts. These might have negative implications for tourism in general, which is the main branch of the Canary Islands’ economy. As pointed out elsewhere in this report the archipelago is highly dependent on fossil energies, a decrease of rain falls might reduce ground water and thus the need to desalinate seawater, with the consequent increase in fossil energies demand for the desalination process. The increase in sea level and the risks of rainfall concentrated in some months of the year might also result in impacts on coastal infrastructures, especially tourist infrastructures, maritime transport, ports, port services, cruise activities, nautical activities, amongst others. The archipelago has the most advanced port facilities in the sea basin and relies heavily on these infrastructures for Blue Growth, thus the impact of climate change might seriously affect the perspectives of economic growth. Fishing would also be affected by the impact of temperature raise and consequence reduction of the catch e of target species. Adaptive actions should be undertaken for highly populated coastal areas and ports to face the threat of flooding. Coastal zone management has the potential to contribute to resilience to flooding, Adaptation actions should also prioritise measures to address the threat on biodiversity. Efforts should be continued to develop clean energies, especially marine energies to diminish dependency on fossil energies.

2 Synergies and tensions between maritime activities The table below reports synergies and tensions of each activity with other maritime activities and which are the contribution to sustainable Blue growth Conflicts Synergies Contribution to with other Group Sector with other maritime sustainable maritime activities growth activities Synergies of fisheries Conflicts of  Fishing has with: fisheries with: provided Aquaculture: Positive Recreational infrastructures synergies between fishing: This that have fisheries and aquaculture activity is contributed to have emerged although perceived as a the growth of in the begging relations strong threat for the aquaculture were tense due to the fishing activity activity. competition for space. in terms of  Fishermen can Ports: These are of key competition and contribute with importance for the sector resources. their traditional Living Fisheries and and especially for the Aquaculture: ecological resources aquaculture industrial fishing activity. There have been knowledge Shipbuilding and repair: many issues in about the The fishing activity and relation to the use species habits, specially the small-scale of the marine habitats and activity require the space. Conflicts, areas more services of traditional however, have appropriate to shipyards in the diminished and conduct diverse archipelago both sectors activities such Tourism: pesca-tourism interact positively as aquaculture, emerges as an (see synergies). tourism and opportunity for There are recreation

(30) European Commission, 2014, The economic impact of climate change and adaptation in the Outermost Regions, http://ec.europa.eu/regional_policy/sources/activity/outermost/doc/impact_climate_change_en.pdf .

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

Conflicts Synergies Contribution to with other Group Sector with other maritime sustainable maritime activities growth activities diversifying the small- environmental activities. scale fishing sector. concerns in  The Other activities: Access relation to fish institutional problems to Moroccan escapes from sea framework of fishing grounds and the cages. cofradías closure of the canning facilitates industry have had a initiatives of negative impact on the diversification salt extraction activity, of coastal which is disappearing. economic activities such Synergies of as those aquaculture with: conducted by The algae production the FLAGs. activity is considered an aquaculture activity in the Canary Islands. The activity provides diverse elements that are highly valuable for the food, pharmacy and cosmetic industries. The regional production is mostly exported. There is potential for the Not applicable It may substantially development of blue contribute to value biotechnology based on addition of algae Blue microalgae. Currently, production. biotechnology algae production is a subsector of aquaculture and has very low production. This activity was very Not applicable Not applicable important in the past. Nowadays is disappearing Extraction of due to the decline of salt fishing and the end of the canning industry, amongst other factors. This activity has been one The effluents of During the last 50 of the pillars of the the desalination years this sector growth of tourism in plants may have has played a very islands facing the negative impact in relevant role in problem of water coastal areas sustainable growth. Non-living scarcity. The sector has where other It has alleviated the resources strong synergies with the activities are problem of water energy sector. In fact, carried out. scarcity and allowed the high consumption of the growth of Desalination electricity (produced from tourism. In fossil energy) is regarded combination with as a problem due to high renewable energies costs, dependency on it may continue fossil energy, and growing while environmental impacts. reducing its The wind energy sector is environmental developing strong impact. synergies with this sector. Maritime Positive synergies with Fisheries and The activity is a key Shipping transport Coastal and Cruise aquaculture: driver for

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

Conflicts Synergies Contribution to with other Group Sector with other maritime sustainable maritime activities growth activities tourism. spatial uses transforming the Renewable archipelago into a energy: spatial hub in the Mid- uses Atlantic. Tourism Ports are essential The Canarian ports and (environmental to sustainable especially the Port of issues) development in the Santa Cruz and Las Canary Islands in Palmas have Important order to take synergies with advantage of the Ports shipbuilding and repair; opportunities (including bunkering activities; provided by their dredging) nautical activities; and strategic position in fishing. In fact, the the mid-Atlantic. infrastructure of these La Restinga Port: ports provides many First Eco- services to many private sustainable Port of activities. Canary Island (31) The decline of the fishing Not applicable During centuries, fleet has impacted this activity has negatively the contributed to the shipbuilding activity. It growth of the Shipbuilding seems that nautical fishing industry. activities may provide an Nowadays, it plays opportunity for a marginal role construction of fibre glass only. vessels. Not applicable The contribution of this activity transcends its economic The activity of revision importance. It and repair of oil platforms Shipbuilding triggers is providing a great technological economic opportunity to improvement and the port sectors. In knowledge general it has important accumulation. The Ship repair indirect effects on the economic economy of Las Palmas opportunity is and Tenerife. This sector mobilising actors of is requiring qualified the metal sector labour which will require which are a specialized training and organising educational offer. themselves in order to satisfy the increasing demand of these services. The tourism activity has Fisheries and Many activities have synergies with the aquaculture may emerged in the last following activities. In oppose the two decades that order to transform these growing use of the promote synergies into positive marine space. employment and Coastal Tourism interactions maritime High pressure over economic growth in tourism spatial planning would be natural water coastal areas. Many required to organise the sources in the activities are activities where the Canary Islands. emerging around marine space is Water is a scarce nautical sports for concerned. resource in the example such as

(31) http://www.gobiernodecanarias.org/noticias/pre/65211/hierro-puerto-vida.

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

Conflicts Synergies Contribution to with other Group Sector with other maritime sustainable maritime activities growth activities  Schools of leisure archipelago. To schools, shops and activities e.g. counteract this workshops. surf, diving, problem In addition to socio- sailing, etc. desalination of economic returns  sea — beach seawater has activities such as cleaner allowed the fast whale and bird companies; increase of watching, diving,  fisheries and tourism in areas of and visits of aquaculture; the archipelago reserves, amongst  marine security where others, raise companies; underground awareness on the  marine transport; water is not value of the marine  research; available. environment and its  marine and conservation. coastal waste management;  energy sector.  Fisheries and This has a The growth of the cruise aquaculture substantial activity has many  marinas contribution in synergies with the  marine terms of following activities: Port Cruise transport. transforming the development, Port tourism archipelago as a services, Marine security preferred companies, Shipyards, destination for mid Marine and coastal waste to high income management tourists. This activity only exists Not applicable Not applicable Marine Wind energy on land. renewable Other energies Not applicable Not applicable Not applicable renewable

2.1 Synoptic view of legislative, non-legislative and financial synergies and tensions among maritime activities The following table reports a synoptic view of main synergies and tensions grouping them under legislative, non-legislative and financial frames. Synergies with other maritime activities ACTIVITY LEGISLATIVE NON-LEGISLATIVE FINANCIAL  Fisheries and aquaculture hold Legislation is strong synergies in terms of sharing pending approval for of the marine space and port the development of facilities. This has given rise to the pesca-tourism cooperation in the provision of activity. This will services of cofradías to the establish the relation aquaculture sector. Fisheries and with fishing with  Round tables have been promoted No synergies aquaculture tourism in order to by the insular governments to identified. establish the limits facilitate dialogue and cooperation, between both which include other activities such activities, while as recreational fishing (32). preventing illegal  The regional government has activities and created the advisory council of informality. fisheries and aquaculture to promote a better governance of the

(32) http://cabildo.grancanaria.com/-/noticia-el-cabildo-crea-la-mesa-insular-de-pesca-y- acuicultura-para-resolver-los-problemas-y-mejorar-la-competitividad-del-sector.

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Synergies with other maritime activities ACTIVITY LEGISLATIVE NON-LEGISLATIVE FINANCIAL fisheries sector involving aquaculture, recreational fishing and scientific and academic institutions (33).  Microalgae production (considered an aquaculture activity) has synergies with desalination. Blue biotechnology is still in a pre- Blue No synergies development stage. This might be No synergies biotechnology identified. developed mainly on the basis of the identified. microalgae production. In the past, the fishing activity had strong synergies with the salt extraction Extraction of No synergies activity for the production of canned fish No synergies salt identified. and cured fish. Nowadays, the salt identified. extraction activity has almost disappeared. SODECAN has a credit line for renewable energy self- consumption. This is not an  Effluents of the desalination process instrument are used in microalgae production. specific for  Water scarcity is one of the barriers desalination. No synergies Desalination for tourism growth. So, the IDAE also identified. desalination sector becomes one of provides the drivers for the development of financial that activity. facilities for self- consumption but there is not a specific instrument for the desalination sector. The use of ERDF in development of infrastructure Maritime No synergies is a key driver No synergies identified. transport identified. for this activity and for the cruise tourism activity. The Canarian ports and especially the Port of Santa Cruz and Las Palmas have Important synergies with shipbuilding Ports No synergies and repair; bunkering activities; No synergies (including identified. nautical activities; and fishing. In fact, identified. dredging) the infrastructure of these ports provides many services to many private activities. The traditional ‘carpinteria de rivera’ is another activity which is disappearing in No synergies the region. It has strong relation with No synergies Shipbuilding identified. the fishing activity. identified. In turn, the growth of nautical tourism may provide opportunities for the

(33) http://www.gobcan.es/noticias/agpa/Pesca/79967/quintero-constituye-nuevo-consejo-asesor- pesca-debera-ser-oido-ordenacion-sector.

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Synergies with other maritime activities ACTIVITY LEGISLATIVE NON-LEGISLATIVE FINANCIAL building of yachts in the region. This activity provides services to the fishing sector and nautical sector. The decline of the fishing activity makes No synergies No synergies Ship repair maritime transport and nautical tourism identified. identified. the main markets for ship repair besides the oil platform repair and maintenance activity. Legislation is pending approval for  Tourism has strong links with the the development of Financial desalination activity. In fact, this the pesca-tourism instruments has contributed to the development activity. This will have been of tourism in many areas of the establish the relation developed by archipelago. Coastal between fishing and SODECAN to  Other of the key drivers of tourism tourism tourism, in order to promote energy is energy, especially energy establish the limits efficiency and efficiency and use of renewables. So between both utilisation of far, only inland renewable energy is activities, while renewable in place, being blue energy in a pre- preventing illegal energies. development stage. activities and informality. The use of ERDF Improvements in infrastructure have in development Cruise No synergies been made in diverse ports in the of ports tourism identified. archipelago in order to provide better infrastructure is infrastructure for cruises. a key driver for this activity. Taxes imposed on the so called self- Inland wind energy is not one of the BG consumption on wind sectors, however, has strong energy are impeding implications in the provision of energy No synergies Wind energy further development for coastal tourism and is becoming an identified. of this alternative to alternative for providing power to the fossil energy large desalination sector. consumption. Marine is in a pre-development stage. Marine energy is in a Envisaged synergies would take place Other pre-development No synergies in with shipbuilding and repair (provision renewable stage. No legislative place. of services on metal-mechanics synergies in place. matters).

Conflicts with other maritime activities

ACTIVITY LEGISLATIVE NON-LEGISLATIVE FINANCIAL Fisheries and aquaculture receives funds  Concerns on the ecological impact of from EMFF. The escapes from sea cages are been share allocated Fisheries and No conflicts raised by the fishing sector. to each activity aquaculture identified.  Expansion of the aquaculture sector could be a may collide with other uses of the source of seas such as coastal tourism. disagreements between the sectors. Blue This activity is still in pre-development stage. No conflicts are occurring. biotechnology Extraction of This activity is disappearing. No conflicts are occurring. salt

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

Conflicts with other maritime activities

ACTIVITY LEGISLATIVE NON-LEGISLATIVE FINANCIAL Untreated effluents of the desalination No conflicts activity may cause negative impacts on No conflicts Desalination identified. the aquaculture activity and in general identified. on the marine environment. Maritime No conflicts No conflicts No conflicts identified. transport identified. identified. Port expansion, or reorganisation, may have some implications for other Ports No conflicts activities such as fisheries, aquaculture No conflicts (including identified. or coastal tourism (especially nautical identified. dredging) services). Sound Maritime Spatial planning should be conducted. No conflicts No conflicts Shipbuilding No conflicts identified. identified. identified. No conflicts No conflicts Ship repair No conflicts identified. identified. identified.  Expansion of coastal tourism has implications for other economic activities such as fisheries, and aquaculture e.g. use of the space Coastal No conflicts and use of port facilities. No conflicts tourism identified.  In the future, conflicts might emerge identified. between this sector and marine renewable energies due to the lack of marine space (narrow continental shelf). Expansion of cruise tourism has Cruise No conflicts implications for other economic activities No conflicts tourism identified. such as fisheries, and aquaculture e.g. identified. use of port facilities. No conflicts No conflicts Wind energy No conflicts identified. identified. identified. Other This activity is still in pre-development stage. No conflicts are occurring. renewable

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

3 Best practices and flagship projects 1. Name of the project/ practice: EcoAqua Objectives: Developing the next generation of research on sustainable aquaculture in EU, aligned with the MSFD and the Blue Growth; Initiate aquaculture development with an ecosystem approach; Develop technology and science in aquaculture, and promote these infrastructures; Provide training to university and technical students, and exchange know-how within the ERA (European Research Area) and with the Outermost Regions e.g. staff mobility and networking. Results achieved: In progress. Reasons for considering it as best practice/flagship project: ECO Aqua is particularly relevant because it constitutes a technological platform for aquaculture. It provides training, knowledge transfer, best practices and innovation for the EU’s OR.

2. Name of the project/ practice: Tropos Objectives: The project will focus on Mediterranean, subtropical and tropical regions, in particular on the EU Outer-Most Regions (OMRs). It will consist in a design of an offshore floating multiuse platform able to integrate a wide range of possible sectors ocean renewable energy, aquaculture, serve as a hub for maritime transport and innovations in the leisure sector, and will also fulfil functions for oceanic observation activities. Results achieved: Not publicly available Reasons for considering it as flagship project: This project is a relevant action aimed at developing an infrastructure capable of making a smart use of the marine space for economic activities, while clustering activities in order to promote technical interactions thus making a better use of knowledge and expertise. 3. Name of the project/ practice: GOBAMP Objectives: To strengthen governance challenges of sustainable artisanal fisheries: creating synergies with marine conservation and tourism Results achieved: Not yet available Reasons for considering it as flagship project: This project is particularly relevant since it is aimed at reinforcing the links betwen artisanal fisheries and other activities in the sea such as conservation and marine tourism. 4. Name of the project/ practice: OMARCOAST Objectives: To define and implement a strategy for the environmental sustainability of the coastal zones of environmental, recreational and productive interest of the transboundary territory (Canary Islands — Morocco) through an integrated preventive management of the coastal environment and its socioeconomic valuation. Results achieved: Development of systems for detection and prevention of environmental risks for the health of coastal areas. Identification of indicators of the ecological status of coastal zones of environmental interest. Implementation of a research network for coastal environmental sustainability. Transfer of knowledge for the integrated management of coastal zones. Reasons for considering it as flagship project: It implements a strategy for coastal areas paying attention to their diverse uses. It is particularly relevant for cooperation with a non-Macaronesia region.

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

5. Name of the project/ practice: MACAPEL Objectives: Handling of 700.000 tons of fish in Mauritanian port; to create more than 5.100 jobs; to invest 167 M€ in infrastructures; to ensure landings in the Canary Islands ports during the transitional period of Mauritanian infrastructure development. Results achieved: The society has been recently created. The project is of special interest because it constitutes an example of private initiative with implications to port development and transnational cooperation. Reasons for considering it as best practice: The society has been recently created. The project is of special interest because it constitutes an example of private initiative with implications to port development and transnational cooperation. It provides an example of innovative approaches were the private stakeholder can play the leading role in enhancing transnational cooperation. The model of participation could be useful in future initiatives. 6. Name of the project/ practice: Ciudad del Mar Objectives: An initiative to improve the situation of the beaches, coasts and littoral of the Las Palmas de Gran Canaria and to promote the development of economic activities linked to the sea. Results achieved: Reasons for considering flagship project: This initiative is unique in Spain and aims at promoting a more sustainable use of the coast and sea surrounding the island. 7. Name of the project/ practice: Las Palmas: Puerto Humanitario Objectives: Coordinate resources and create synergies with international organizations to place the port of Las Palmas on the map of global humanitarian aid. Results achieved: General Assembly of Port and Maritime African Women; creation of a master's degree in humanitarian logistics is scheduled to be provided by the University of Las Palmas. Reasons for considering flagship project: Las Palmas is one of the main ports in the region and has a high relevance as a hub for humanitarian aid and in the field of knowledge transference in port matters. 8. Name of the project/ practice: ALERMAC Objectives: Coordination of an early reply in emergency situations in order to mitigate the environmental and socioeconomic impact produced by sea pollutants. Results achieved: Development of the software ALERMAC. Technical training on management of effluents risks and environmental incidents. Reasons for considering flagship project: This project is of particular since it develops tools for ports to reply to emergencies caused by pollutants in the marine environment. 9. Name of the project/ practice: DECTIPORT Objectives: Development of software for the administration and management of port resources. It also aims at articulating stable links for institutional cooperation in the stevedoring of the ports Las Palmas and Dakar. Results achieved: The software DECTIPORT is available online: http://www.disoft.es/deticport/files/Manual_Programa_DETICPORT_es.pdf Reasons for considering flagship project: This project is of particular relevance due to the development of cooperation in improvement of cargo loading/unloading between in the ports of Las Palmas and Dakar.

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

10. Name of the project/ practice: Training of workers in new skills required by the offshore activities Objectives: To incorporate workers into the new market niche, by training and certifying them Result achieved: Training courses offered by the metal federations of Tenerife (FEMETE) and Las Palmas (FEMEPA) Reasons for considering it as best practice: These initiatives offer opportunities for recycling idle workers with experience in other industrial sectors. Involvement of private stakeholders in improvement of regional skills seems a good practice to quickly respond to emerging needs of the industry. 11. Name of the project/ practice: Insular round table of the fishing sector of Gran Canaria Objectives: To gather the fishing, aquaculture and recreational fishing sector, the insular, regional and national governments, and R&D and academia in order to improve the competitiveness of fisheries in Gran Canaria. To channel the demands of the professionals of the sector and give them advice. Result achieved: Constitution of the round table in 2016 and regular meetings, where topics such as the level of quotas for key species have been discussed with specialists of the MAPAMA. Reasons for considering it as best practice: Although the insular government has no competences in fisheries management this initiative promotes dialogue amongst stakeholders and provides technical advice to the fishing sector in matters that require participation of specialists.

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

3.1 Best practices and flagship projects details Name of Leading Other subjects/ stakeholders Maritime the project/ Timing Budget Programming document Website actor(s) involved sectors involved practice Centro de Investigación y Biodiversidad (ULPGC), Campus Atlántico Tricontinental, Grupo de Secretaria Regional do Acuicultura Ambiente Recursos Naturais Universidad 06/2014 — Direçao Regional de EcoAqua de Las — Aquaculture 2 M € ERA-Chairs http://ecoaqua.ulpgc.es/ Pescas, Palmas de 06/2017 Center of Applied Economics Gran Canaria Studies of the Atlantic, (ULPGC) Union des Aquaculteurs d'Outre Mer, Agence de Développement Economique ADECAL Aquaculture, Plataforma 02/2012 maritime 7th Framework Program http://www.troposplatform Oceangráfica Several actors all over the Tropos — transport, 4.9 M € — The Ocean of .eu/tropos-european- de Canarias EU. 02/2015 renewable Tomorrow collaborative-project (PLOCAN) energies, R&D Instituto Español de Ministerio de Economia Oceanografía (IEO), Centro y Competitividad de Oceanográfico de Canarias, España. State Program Universitat de Girona, of Research, University of Tromso, Artisanal Development and GOBAMP II Universidad Université de Bretagne 01/2014 - fisheries, 49’000 € Innovation Challenges Not available (34) de la Laguna Occidentale, Memorial 12/2016 tourism, Oriented to Society. University of Newfoundland, conservation State Plan of Scientific Canadá, University of and Technical Research Aveiro, University of South and Innovation 2013- Carolina, Universidad de 2016 South Carolina Instituto Canary Islands : ITC, IEO, 10/11 — Marine European Regional http://maps.omarcost.itcc OMARCOST 780’026€ Tecnológico University of La Laguna, 12/2013 conservation, Development Fund anarias.org/

(34) Retos para la gobernanza de unas pesquerías artesanales sostenibles: creando sinergias con la conservación marina y el turismo, financed by Ministry of Economy and Competitiveness, Spain, Ref. CSO2013-45773-R.

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

Name of Leading Other subjects/ stakeholders Maritime the project/ Timing Budget Programming document Website actor(s) involved sectors involved practice de Canarias Gestión de Áreas rurales fisheries (ERDF), (ITC) (GAR), Border Cooperation Morocco : Programme. Ibn Zohr University, Institut National de Recherche Halieutique, Secrétariat d'Etat Deposited et Ministère de l'Energie des Mines, de l'Eau et de l'Environnement chargé de l'Eau et de l'Environnement, Université Mohammed V, Hassan II University. Macapel Partnership between Private resources. In 2016 — http://ldac.chil.me/downlo MACAPEL Pelagic companies of Canary Islands Fisheries, ports 167 M€ addition, EU support 2020 ad-doc/66321 society and Mauritania will be requested. Ciudad del LPA VISIT, Nautical, http://www.lpamar.com/w Las Palmas Mar de las Puertos de las Palmas, Tourism, Own resources of the p- de Gran From Palmas de Deportes LPGC Ports, NA government of the town content/uploads/2014/01/ Canaria town 2013 Gran Educación, Ambiental Marinas, of Las Palmas. reglamento-playas-agosto- hall Canarias ADEACors Palmas Marine research 2013.pdf Canary Goverment, Autoridad Portuaria de Las Palmas de Gran Canaria, Programa Mundial de http://www.gobiernodecan Las Palmas, Alimentos (PMA), Cabildo arias.org/noticias/epsv/71 Port Local collaboration Puerto de Gran Canaria, 888/gobierno-canarias- Authority of 2016 Shipping (Port) 12,000 Euros agreement Humanitari Universidad de Las Palmas incorpora-proyecto- Las Palmas o(35) de Gran Canaria, palmas-puerto- Ayuntamiento de Las humanitario Palmas de Gran Canaria, Casa África, Cruz Roja y la Asociación de Estibadores Fundación Autoridad Portuaria de S/C Shipping http://www.fundacionpuer Canaria de Tenerife APRAM — 2004- Interreg IIIB Azores- ALERMAC (Port/Maritime 1,338,593 € tos.com/00000/paginas/ht Puertos de Administraçao dos Portos da 2006 Madeira-Canaries Transport) ml/default.htm Las Palmas Regiäo Autónoma da

(35) http://www.gobiernodecanarias.org/noticias/epsv/71888/gobierno-canarias-incorpora-proyecto-palmas-puerto-humanitario.

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

Name of Leading Other subjects/ stakeholders Maritime the project/ Timing Budget Programming document Website actor(s) involved sectors involved practice Madeira, S.A. ENAPOR — Empresa Nacional de Administraçao de Portos, S.A. de Cabo Verde Asociación http://www.pct- sindical de Shipping Sindicat des Auxiliaires de 2013- 2007 — 2013 Madeira mac.org/registroficha?id= DETICPORT estibadores (Port/Maritime 63,527€ Transport du Senegal 2015 — Açores — Canarias 13769dd8-4b63-472c- portuarios de Transport) b463-352749130f8f Las Palmas

4 Gap analysis In this section, each maritime activity has been analysed in order to identify ‘what is missing for a sustainable Blue Growth’ in terms of ‘Human resources skills’, ‘Infrastructures’, ‘Research’ and ‘Data’.

 Marine fishing and fish processing Crews are aged and, in many cases, do not hold appropriate educational qualifications. There is little generational relief in the sector. Human resources Technical developments to catch deep water species are required. Market studies are needed to assess the viability of the skills introduction of this species in the market. Fish is commercialized with little value added because fresh and frozen fish are the preferred forms of consumption for consumer. Most of the artisanal fleet is aged (average 35 years old) and do not offer adequate security on board and fish preservation facilities. Infrastructures Landing sites and small scale fishing ports face shortage of ice production, which affects the cold chain. Although there is a high level of research in the Canary Islands in relation to marine resources, and especially fisheries, there is no R Research & D on transformation of fisheries products. Collection of data for scientific purposes is conducted by the IEO and seems to need reinforcing at landing sites due to the large amount of harbours and landings sites. This seems to be a lack of personnel to collect the fisheries data. There is also a gap in the collection of data of the very large recreational fleet. IUU fishing activities are also eroding the accuracy of the data collecting Data process. There is little availability of data on socioeconomic variables for fishing and processing such as GVA, employment and turnover. These data are usually offered aggregated for both sub-sectors or even aggregated with agriculture and other primary sectors and provided by three different sources.

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

 Aquaculture Human resources Although there is a high level of technical capacity, technical personnel are trained in the two technical aquaculture schools, there skills are no qualified divers specialized in the aquaculture activity. This is highlighted as a gap by the sector.

Technical viability for the corvina has been demonstrated by the introduction of this species is facing strong environmental concerns Infrastructures and, thus, production may not be carried out in the mid-term. Another gap for the growth of aquaculture production is the difficulty to access to treatment of fish diseases due to the cost of importing medicines, time of transport and custom procedures. This is related with the insularity and remoteness of the region (36).

Research No gaps identified.

Data Data on employment is not offered disaggregated (it is provided together with fishing).

 Desalination of seawater Human resources The envisaged growth in production will require more technicians and engineers. Consequently, highly trained personnel will be skills required. There is a gap on specific technical studies (FP) and postgraduate studies for engineers on this field. Although the archipelago has 320 plants for desalination of seawater current capacity seems insufficient to satisfy the increasing Infrastructures water demand.

Research No gaps identified.

ISTAC collects data for the broad sector ‘Natural water; water treatment and supply services’, which includes desalination of Data seawater. The data on desalination is not provided to the general public.

 Maritime transport Human resources A weak generational relief is reported for this activity, especially notable in the case of crews. skills

Due to the peripheral situation of the island, the sector depends heavily on State subsidies for passengers (37) and freight transport Infrastructures in order to make it more competitive. (38)

(36) http://www.ipacuicultura.com/noticias/en_portada/33177/la_sanidad_acuicola_como_factor_clave_para_la_supervivencia_y_desarrollo_del_sector.html. (37) http://www.gobiernodecanarias.org/juriscan/ficha.jsp?id=73456. (38) http://www.fomento.gob.es/mfom/lang_castellano/direcciones_generales/marina_mercante/subdireccion_trafico/registroespecial.htm .

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Research No gaps identified.

Data Data on socioeconomic variables for passenger and freight transport activities is not offered disaggregated.

 Ports Human resources Diversification and expansion of activities will require qualified personnel, especially in relation to the growing offshore activities e.g. skills bunkering, ship repair and maintenance, etc..

Infrastructures No gaps identified.

Research No gaps identified.

No specific socioeconomic data is offered for ports. These are offered aggregated with other activities under the broad category Data warehousing and support activities for transportation (see chapter 1).

 Shipbuilding and repair

The new market niches that are emerging in the Canary Islands, especially in the fields of ship and oil platforms revision and repair, require personnel with specialized technical skills, e.g. underwater welding, and certification. It is expected that the demand of Human resources personnel will comprise qualified workers and engineers (39). There is a reported shortage of trained workers, which demand is being skills satisfied by foreigners. Lack of English abilities is considered an important gap. The federations of metal entrepreneurs of Las Palmas and Tenerife are undertaking initiatives to train workers in these new skills. The emergence of nautical activities will require technicians specialized in utilization of fibre glass and other synthetic material.

Infrastructures Training of personnel require special infrastructure to simulate conditions at sea, for example (40).

Research No gaps identified.

(39) The faculties of naval and nautical engineers of Las Palmas and La Laguna offer high quality graduate and postgraduate studies, which seems sufficient to match the demand of engineers. (40) Currently, a Norwegian company is offering this service in Taliarte (Gran Canaria). Besides this the federations of metal entrepreneurs of Gran Canarias and Tenerife own infrastructure to train workers of the metal industry in skills applicable to the naval industry.

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Socioeconomic data for the ship repair activity is provided aggregated with other sectors under the broad category repair and Data maintenance of machinery and equipment. Socioeconomic data for shipbuilding and repair are collected by the INE in the annual industry survey but only available upon payment. This data is available only until 2013 due to privacy restrictions.

 Coastal tourism

The high seasonality of the activity impedes professionalization of full time employees. For achieving one of the main strategies of tourism in the Canary Islands (Strengthening competitiveness of destinations in the Canary Islands) adequate training and Human resources qualification of human resources are needed. Currently, the touristic formation is generic or response to punctual needs, but the skills aim for the near future is to provide a specialized and permanent tourism formation. Nautical activities and other activities such whale watching and cultural tourism, amongst others, need qualification and certification to avoid informal operators.

In the Canary Islands there are more than 434 000 beds for tourism, but around 25 % of them are considered obsolete. A renewal is needed especially in the areas that were first developed, where infrastructures are experiencing ageing and obsolescence. The Infrastructures continuous transformation of the littoral of the Canary Islands, characterized by coastal areas won from the sea (harbours, marinas, amongst others) has an impact on biodiversity.

Nowadays, the level of R&D is not sufficient and it has to be improved according to the Strategic Plan of Tourism of the Canary Island. The links between the academic/education world and business are still weak. In line with the Europe 2020 Action Plan, in the Canary Islands research and innovation are needed to improve the competitiveness and productivity of the tourist product. a. introduction of new tourist products and consolidation of cost-effectiveness of existing products; b. establishment of new methods and marketing tools in order to reduce dependence on external marketing channels, so as to ensure some ability to influence prices; c. connectivity of destinations to meet the challenge of maintaining the attractiveness of destinations and improve connectivity Research with a large number of routes and frequencies at competitive prices; d. cooperation and strategic alliances, both public and private, and blasting novel models for cooperation between enterprises and public-private partnerships; e. intelligent management of the relationship with clients as an innovative tool for managing the predominant business model in the islands; and f. attract talent and increase awareness among the population and entrepreneurship of the importance of their integration with world tourism.

Absence on data related to nautical and recreational activities. Data on Accommodation and on Food not necessarily linked to Data tourism.

 Cruise tourism Human resources Envisaged growth of the activity due to, for example, new circuits in the Macaronesia sea basin would increase the need for skills qualified personnel with good language skills, especially in relation to services provided to stoppers at cities. Future growth of activities linked to the ports requires improvement and enlargement of ports facilities. The offer of urban Infrastructures attractions and services for cruisers arriving to the islands in a stop is regarded as limited.

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Research N/A There is no specific data for this activity. The data provided in this study has been obtained from passengers transport and Data applying the consultants’ methodology.

4.1 Synoptic view on the gaps identified The following table reports a synoptic view of main gaps identified grouping them by ‘legislative’, ‘non-legislative’ and ‘financial’ gaps. ACTIVITY LEGISLATIVE NON-LEGISLATIVE FINANCIAL  The sector depends heavily on the  Lack of R&D on fish processing. R&D is EMFF. Banks and other financial The sector demands allocation focused on resource evaluation and intermediaries do not offer ad hoc of a higher regional quota for fishing. instruments for this activity. Marine fishing and the blue fin tuna, which is  Weak generational replacement in the  Fisheries in general face high fish processing considered a species of high activity, especially in the extraction transport costs due to remoteness, importance for the small scale phase likely due to the reduction of the insularity and double insularity. sector. fleet and the lack of economic Compensation instruments seem to attractiveness of the fleet. satisfy only partially the problem of transport costs.  Administrative processes are extremely long due to  Another non-legislative gap for the scarcity of available space growth of aquaculture production is the  The sector depends heavily on the and environmental difficulty to access to treatment of fish EMFF. Banks and other financial concerns. diseases due to the cost of importing intermediaries do not offer ad hoc  New concessions depend Aquaculture medicines, time of transport and custom instruments for this activity. on the approval of the procedures. This is related with the  New investments are discouraged Management Plan for insularity and remoteness of the region. by the long administrative Aquaculture in Canarias  Lack of specialized diverse in aquaculture processes. (PROAC) which has been and cage repair. under discussion during the last four years.  There is a need for engineers and technician to face the future expansion of Self-consumption of wind the sector. Postgraduate studies are not energy faces recently available at regional level. Desalination of imposed taxes on self- There are not specific private financial  The problem of high dependency on fossil seawater consumption, which are instruments for this activity. energies cannot be fully counteracted perceived as a barrier for the trough self-consumption due to technical activity. limitations and recently imposed taxes also impose high costs to production. Maritime transport No gaps identified. Generational relief, particularly in relation to There are not specific private financial

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ACTIVITY LEGISLATIVE NON-LEGISLATIVE FINANCIAL crews, is reported as threat for the future of instruments for this activity. the activity. Although the sector possess highly trained There are not specific private financial personnel, diversification and expansion of Ports No gaps identified. instruments for this activity. The sector activities, will require qualified personnel, relies on ERDF for its development. especially in relation to offshore activities.  Lack of technical skills is pointed out as a major gap for the development of the Shipbuilding and There are not specific private financial No gaps identified. sector. repair instruments for this activity.  Lack of language capacities is also considered a strong constrain.  Energy and water supply are two of the major problems identified. These issues New activities require have been addressed successfully in the legislative efforts in order to last decades. provide a legal framework for  Training and education for low and mid- their development. For qualification positions in the food and There are not specific private financial Coastal tourism example, pesca-tourism, beverage activities are identified as gaps instruments for this activity. whale and birds watching to be addressed. require regulatory  Emerging activities require trained frameworks in order to avoid personnel in new activities linked to use illegal or informal activities. of the marine space, resources and cultural values.  Seasonality and lack of city services and ad hoc touristic offer for stoppers are There are not specific private financial Cruise tourism No gaps identified. regarded as gaps for this activity. instruments for this activity.  Lack of language capacities is also considered a strong constrain.

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Mapping actors and maritime strategies 5 Mapping public authorities Table 5 — Public authorities (41) surveyed in Canary Islands Maritime Name of the Main roles and responsibilities Address Website sector(s) authority The Canarian Agency for Research, Innovation and C/ León y Castillo, nº 200 http://www.gobiernodecana Information Society (ACIISI), under the overall direction of Edf. Servicios Múltiples III 6ª rias.org/aciisi/la_agencia/in the head of the Ministry of Economy, Industry, Trade and 35071 Las Palmas de Gran dex.html Knowledge, is responsible for carrying out the powers Canaria R&D, relating to public policies and programs in research, innovation, technological development, business innovation and Avda. Buenos Aires, nº 5 capacity deployment of the information society of Autonomous Edf. Tres de Mayo Planta 2ª Agencia building for Community of the Canary Islands. 38071 Santa Cruz de Tenerife Canarias de all It is also the body responsible for ensuring administrative Innovación y productive coordination on matters assigned to it. This agency is in Sociedad de la sectors, charge of the implementation of the RIS3 strategies in the Información including the Canary Islands, where the Blue Growth strategy is framed. (ACIISI) marine and The fields of competence of ACIISI are: maritime  research; Innovation; Society of Information; sectors  development of human capabilities and innovative research;  scientific and technological infrastructures;  support of the Coordination Commission of Science, Technology and Innovation. The Consejería (Ministry) of Agriculture, Livestock, Fisheries Avda. Alcalde José Ramírez http://www.gobiernodecana and Water of the Canary Islands Government prepares and Bethencourt, nº 22 rias.org/agricultura/consejer implements the governmental policy of agricultural, Edf. Jinámar Planta 2ª ia/ fisheries, food policy, and land surface and underground 35071 Las Palmas de Gran waters. In addition, it is responsible for implementing the Canaria Consejería de Fisheries Common Agricultural Policy (CAP) and the Common Agricultura, and Fisheries Policy (CFP) in the Canary Islands. The Directorate Avda. José Manuel Guimerá, ganadería, aquaculture General for Fisheries of the Consejería regulates interior sea nº 10 pesca y aguas fishing, shellfish and aquaculture waters; management, Edf. Servicios Múltiples II commercialization and industrialization of fishing, shellfish Planta 4ª and aquaculture sector; fisheries inspection and monitoring; 38071 Santa Cruz de Tenerife fisheries research and training both professional and recreational and underwater activities. Consejería de In charge of planning and promotion of tourism in the C/ León y Castillo, nº 200 http://www.gobiernodecana Tourism Turismo, Canary Islands Edf. Servicios Múltiples III 6ª rias.org/ctcd/

(41) Only those directly relevant for Blue Growth.

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Maritime Name of the Main roles and responsibilities Address Website sector(s) authority Cultura y 35071 Las Palmas de Gran Deportes Canaria The Spanish government has full jurisdiction in marine C/Velázquez, 144 — 28071 http://www.mapama.gob.es fishing matters, and hence issue the relevant national Madrid /es/ legislation and enforce its implementation. With regard to Fisheries the development of the fishing industry and its commercial and MAPAMA activity the central government only establishes a general aquaculture legislation. The Autonomous Community can adopt provisions that complement the national legislation and proceed to implement them. The cabildos are the insular governments of the seven Cabildo de Gran Canaria http://cabildo.grancanaria.c islands of the Canarian archipelago. They have Cabildo de Tenerife om/ competences transferred by the regional government in Cabildo de El Hierro http://www.tenerife.es/port matters concerning tourism, waters (including Cabildo de Fuerteventura alcabtfe/es/ Desalination desalination), recreational ports, and aquaculture. Cabildo Insular de La Gomera http://www.elhierro.es/ of seawater; Cabildo de Lanzarote http://www.cabildofuer.es/c Cabildos Tourism; Cabildo de La Palma abildo/ insulares fisheries and http://www.lagomera.es aquaculture http://www.cabildodelanzar ote.com/ http://www.cabildodelapalm a.es/portal/principal.jsp?cod Resi=1 Public institution that manages five ports: La Luz, Salinetas, Tomás Quevedo Ramírez, s/n http://www.palmasport.es/ Port Authority Arinaga, Marbles and Puerto del Rosario; in 3 different 35008 web/guest/autoridad- Port of Las Palmas islands: Gran Canaria, Lanzarote and Fuerteventura Las Palmas de G.C. portuaria Las Palmas Public institution that currently manages the ports of Santa Avenida de Francisco La http://www.puertosdetenerif Port Authority Cruz de Tenerife, Santa Cruz de La Palma, Los Cristianos, Roche, 49 — Edif. Junta del e.org/index.php/es/ Port of Santa Cruz San Sebastian de La Gomera and La Estaca Puerto de Tenerife 38001 Santa Cruz de Tenerife Planning, operation and management of the port system Plaza del Fuero Real de Gran https://puertoscanarios.es/ owned by the Canary Island Government. Canaria, nº 4 Port Canary ports Edf. Tamarco Planta Baja 35071 Las Palmas de Gran Canaria Preparing proposals for provisions, plans and programs of Plz. de los Derechos http://www.gobiernodecana General action related to the transport sector in the Canary Islands Humanos, 22 Edf. Servicios rias.org/copt/transportes/ Maritime Directorate of and processing procedures in accordance with current Múltiples I Planta 11ª transport Transport regulations. 35071 Las Palmas de Gran Canaria

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6 Summary of existing maritime strategies The Canary Islands is conscious of the opportunities that the blue growth is offering to the archipelago. Consequently, its leading actors are conducting various strategies in key sectors in order to take advantage of the opportunities offered by the market and by the programming period 2014-2020. Strategies comprise marine and maritime sector with special focus on R&D and innovations, infrastructures, cooperation between public and private sectors, and development of human capacities.

6.1 RIS 3  Geographical level (local/national/sea basin) Regional (Canary Islands level).  Maritime sectors involved Tourism, ship repair, fishing, aquaculture, marine biotechnology, marine renewable energies, other marine and maritime activities, and R&D.  Objectives The Canarian RIS3 is conceived as an agenda of economic transformation. It should lead to strengthening of the knowledge-based economy by 2020. This has as a first priority tourism, the main pillar of the Canarian economy, proposing that innovation should lead to a better touristic experience but also making tourism an area of productive, technological and organizational innovation in the subsectors related to tourism, including energy, water, information technology, local food production, etc. Another priority concerns the smart use of the Atlantic location, which is a geostrategic point of confluence between continents and border of Europe. Particular attention is paid to fields of technological expertise where the Canary Island is a world referent e.g. water, inshore wind energy, maritime sectors. A second priority is to transform the region into a business and cooperation platform in their region, and to become a cultural referent. A third priority is the strengthening of R & D, with a focus in in areas where Canarias has a competitive advantage: biomedicine, astronomy, biotechnology and marine and maritime activities.  Implementing tools In 2012, the Presidency of the Canarian Government, through the Canarian Agency for Research, Innovation and Information Society (ACIISI), in collaboration with other government departments led the process of revision and public consultation for the identification and validation of the elements of the strategy and the identification of priority areas in which investing the structural funds of the programming period 2014- 2020.  Actors involved and beneficiaries ACIISI is responsible for carrying out this strategy. Many other actors have been involved in the development of the strategy, from government departments, to private actors and education and R&D institutions. Direct beneficiaries of the strategy are the private sector and R&D actors. The ultimate beneficiary is the Canarian society as a whole.  Possible contribution to the fulfilment of BG objectives In relation marine and maritime sectors, the RIS3 of the Canary Islands highlight the importance of these sectors as strategic for the social and economic growth of the Islands. These are sectors intensive in technology, which has been consolidated around port activity and that are taking advantage of the strategic position of the Archipelago in relation to other regions. The Canary Islands government has identified key areas of blue economy to focus its efforts, in line with the objectives of the Europe 2020 strategy. These prioritized areas include, on the one hand, consolidated and relevant activities in terms of employment and volume of business such as ship repairs, shipping or fishing

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and, secondly, a group of economic activities with great potential such as marine biotechnology, marine renewable energy, coastal tourism and aquaculture. Complementary to these consolidated and potential sectors, the Canary Islands enjoys a network of excellence in knowledge generation and development of new technologies, which include the University of La Laguna, University of Gran Canaria and their research groups, PLOCAN, ITC and CETECIMA. All the elements mentioned above may trigger the Blue Growth in the Canary Islands.  Website http://www3.gobiernodecanarias.org/aciisi/ris3/images/documents/ris3_canarias_v2.0.p df 6.2 Strategic Plan of Aquaculture (PEACAN)  Geographical level (local/national/sea basin)

Regional (Canary Islands level)

 Maritime sectors involved Sub-Department of Fisheries and Water of the Canary Islands

 Objectives To conduct a planning document for the aquaculture development for the period 2014- 2020, in line with European guidelines the principles of the CFP, the EMFF and, of course, the Multi-year Strategic Plan for Spanish Aquaculture

 Implementing tools The PEACAN contributes to the Europe 2020 strategy for smart, sustainable and inclusive growth consistent with the Common Strategic Framework. It also includes measures to ensure effective, efficient and coordinated implementation of the EMFF funds, as well as measures to reduce the administrative burden.

 Actors involved and beneficiaries Government departments, aquaculture private sector, researchers  Website http://www3.gobiernodecanarias.org/aciisi/obidic/files/plan_estrategico_promocional_isla s_canarias_2012-2016.pdf

6.3 Strategic Promotional Plan of Tourism (2013-2016)  Geographical level (local/national/sea basin) Regional (Canary Islands level)

 Maritime sectors involved Tourism

 Objectives To position the Canary Islands as a unique, competitive and preferential destination for its diverse target markets, trough effective and efficiency promotion. The main goal is to transform the archipelago in a referent in the process of selection of holiday’s destination in the tourist source market.

 Implementing tools The Plan has implementation instruments to define promotional actions for each market niche, products, and communication strategies.

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 Actors involved and beneficiaries PROMOTUR Turismo Canarias, which is the organism responsible for the promotion of the trademark ‘Canary Islands’; the de Turismo y Desarrollo Económico Instituto de Investigación Sostenible and the Catedra UNESCO of the ULPGC. Due to the importance of tourisms the beneficiary is the Canary Islands as a whole.

 Possible contribution to the fulfilment of BG objectives The Plan does not envisage particular actions for BG and for coastal and maritime tourisms. However, it provides a framework for the promotion of the tourism sector that is highly relevant for coastal and maritime tourism.

 Website http://www3.gobiernodecanarias.org/aciisi/obidic/files/plan_estrategico_promocional_isla s_canarias_2012-2016.pdf.

6.4 Strategic Plan of Cruises (42)  Geographical level (local/national/sea basin) Regional (Canary Islands level)  Maritime sectors involved Maritime transport, Ports and Tourism  Objectives

The main goal is to promote the Canary advantages over other competing destinations and to transform the archipelago as the great Atlantic cruise destination. The final goal is to increase the cruise traffic to the islands, promoting the inter-insular connectivity through improving of the port connections and infrastructures

 Implementing tools Available information on Canary Government web page is only related to the meeting that took place in January of 2015 where the results of this strategic plan were showed to the different authorities who worked in relation with cruise traffic. During that meeting, working groups were carried out in order to propose future projects involving all those who have something to contribute in the world of cruise traffic.

 Actors involved and beneficiaries Canary Government (PROMOTUR), cruise tour operators, mayors of the main cities, the Port Authorities of Las Palmas and Tenerife and the Canary Islands Ports

 Website http://www.diariodenautica.com/canarias-presenta-los-resultados-del-plan-estrategico- de-cruceros

6.5 Canary Port Plan (43)  Geographical level (local/national/sea basin) Regional (Canary Islands level)  Maritime sectors involved Ports

(42) http://www.diariodenautica.com/canarias-presenta-los-resultados-del-plan-estrategico-de- cruceros. (43) http://www.gobiernodecanarias.org/copt/documentacion/puertos/plandepuertos.pdf.

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 Objectives The main objectives of the port planning are: development of port enlargements; adjustment the supply to the demand; empowerment of the regional ports in the network of inter-island transport; improvement of shelter conditions and safety in the manoeuvres; adaptation and increase the supply of commercial and sport docks; increasing the supply of port area for activities and equipment; development of port spatial planning in order to separate different activities; focusing the efforts on a limited set of ports, strategically selected, based on their location and on future prospects; improvement the relation with international port  Implementing tools There is a total investment of 300 million euros. However, specific information about port planning and future actions are not yet available on Canary port web page (44).  Actors involved and beneficiaries Canary Government (Public Works and Transport Department). The Canary ports which are included in this plan are: Tazacorte,  possible contribution to the fulfilment of BG objectives Development of sustainable modes of transport  Website http://www.gobiernodecanarias.org/copt/documentacion/puertos/plandepuertos.pdf.

6.6 Canary Islands' regional transport plan (PETCAN) (45)  Geographical level (local/national/sea basin) Regional (Canary Islands level)  Maritime sectors involved Port/Transport  Objectives The Strategic Transportation Plan Canarias (PETCAN) is a planning document that has its origin in General Management Guidelines approved by Law 19/2003 of the Canary Islands. The document includes demands for Mobility and Transport System. The main objective is to promote the sustainable mobility and to resolve the problems of being an OR. Moreover, the plan provides in-depth analysis of island transport activity  Implementing tools It was expected a public inversion of 145.4 M€ within the period 2007-2013, of which 103.6 M€ correspond to the ERDF, with a cofounding amount of 71.24 %.  Actors involved and beneficiaries Canary Government (Public Works and Transport Department)  possible contribution to the fulfilment of BG objectives One of the aims of the plan is to promote the Canary Islands as a tri-continental maritime platform in the Atlantic. This has a meaningful role in promoting BG in the region.

 Website https://www.boe.es/diario_boe/txt.php?id=BOE-A-2007-11752

(44) http://puertoscanarios.es/planificacion-portuaria/. (45) https://www.boe.es/diario_boe/txt.php?id=BOE-A-2007-11752.

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

6.7 Strategic Infrastructures and Transport Plan (PITVI 2012-2024) (46)  Geographical level (local/national/sea basin) National  Maritime sectors involved: all transports  Objectives In relation to port and maritime transport activity, these are the main goals: — enhance competition and increase the cost competitiveness of ports; — development and updating of maritime transport regulations; — promote international positioning of the ports, reinforcing the commercial action and services; — integrate sustainability, security and R + D and innovation in port management; — improvement of port connectivity as a part of a comprehensive network; — improvement of the Services Quality of the Maritime Administration; — development of the Transport Portal; — optimising the management of maritime infrastructure safety, pollution control and management efficiency of the rescue services.

 Implementing tools In relation to maritime transport, this plan includes the following sub-programmes (in which future actions for Santa Cruz de Tenerife and Las Palmas Port are included): - port management efficiency; - development of the business; - sustainability of ports; - safety and Management Efficiency of rescue; - coordination with National and International organisations.

 Actors involved and beneficiaries Ministry of Public Works and Transport  Website http://www.fomento.gob.es/NR/rdonlyres/69A5B195-BD26-44B2-BB69- 1F3CDCAB1EB6/19554/PEIT2005Cap03.pdf

6.8 Strategic Plan of the Canary Islands Maritime Cluster (2013-2016)  Geographical level (local/national/sea basin) Regional (Canary Islands level)  Maritime sectors involved Ship repair, nautical activities, maritime transport, ports, fisheries, aquaculture and R&D.  Objectives Creation and development of the organizational structure and coordination of the Maritime Cluster of the Canary Islands.  Implementing tools Collaboration and innovation of all the actors of the value chain of the system of science- technology-enterprises and searching of business opportunities in national and international markets. Examples of targeted markets are international firms holding interests in the Western coasts of Africa, renewable energies, services markets in oceanic research and development, amongst others.

(46) https://www.fomento.gob.es/MFOM/LANG_CASTELLANO/PLANES/PITVI/.

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

 Actors involved and beneficiaries Main actors of the marine and maritime economy of the Canary Islands; research and development institutions; government agencies.  Possible contribution to the fulfilment of BG objectives The Plan focuses on sectors that are highly relevant for blue growth in the region.  Website http://www.clustermc.es/documentos/plan-estrategico-cmc.pdf

7 Mapping main stakeholders Table 6 — Main stakeholders surveyed in Canary Islands Maritime Name of the Main roles and responsibilities Address Website sector(s) stakeholders Avenida de los Represents the interest of the Asuncionistas 10 — http://www.fem Nautical ASNAUTICA nautical entrepreneurs of the 1 Local. ete.com.es/inde activities Canary Islands. 38006 Santa Cruz x.php/asnautica de Tenerife The Spanish Bank of Algae is a national R&D service of the ULPGC, which objectives are the isolation, identification, characterization, conservation and provisioning of microalgae and cyanobacteria. In addition BEA aims to function as a Muelle de Taliarte, service facilitating the http://bea.marin Aquaculture, BEA (Banco s/n development of a new ebiotechnology.o biotech- Español de 35214 — Telde bioindustrial sector based on the rg/es/ nology Algas) Gran Canaria cultivation and application of microalgae. BEA is Accredited as an International Authority for the Deposit of Micro-organisms in accordance with the Treaty of Budapest by the World Intellectual Property Organization (WIPO). The Technological Centre of Marine Science CETECIMA is a private, non-profit making organization aimed at conducting innovation and technology in the maritime marine area of the Canary C/. Delineante 22, Islands. It helps companies of Aquaculture, 1ª Planta, Oficina 4 the maritime sector to improve fisheries, Urb. Industrial de competitiveness, promotes http://www.cete coastal Salinetas, Apto. CETECIMA participation of companies in cima.com/ tourism, 174 — Telde R&D and innovation activities, nautical 35214 Las Palmas integrates companies of the activities de Gran Canaria marine and maritime sectors in networks of interaction at regional, national and international level, it also promotes the transference of research outcomes to the productive processes. The Spanish Institute of Vía Espaldón, Oceanography is a public dársena pesquera, IEO (Instituto research body devoted to Fisheries, Parcela 8 38180 www.ieo.es Español de research in marine sciences. It R&D Santa Cruz de Oceanografía) especially focuses on scientific Tenerife knowledge of oceans,

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

Maritime Name of the Main roles and responsibilities Address Website sector(s) stakeholders sustainability of marine resources and the marine environment. IEO carries out basic and applied research as well as provides scientific and technological advice to the Spanish administrations on issues relating to oceanography and marine sciences. It is the government's research and advisory body in terms of sectorial fisheries policy. It represents Spain in most of the international fora and bodies related with the sea and its resources. Management and operation of the Free Zone of Gran Canaria. It is a public entity, composed

by the Ministry of Finance, C/ Andrés Maritime Consortium Government of the Canary http://www.zona Perdomo, s/n35008 Transport/Po Free Zone of Islands, Insular Cabildo of Gran franca.org/ — Las Palmas de rts Gran Canaria Canaria, the Port Authority of Gran Canaria Las Palmas, chamber of Commerce and Confederation of Entrepreneurs of G. Canaria. The Technological Institute of the Canary Islands is a public enterprise, and attached to the Department of Employment, Industry and Trade of the regional government. ITC Instituto conducts Research, Development Calle Cebrian 3, www.itccanarias. Tecnológico and Innovation at the regional 35003 Las Palmas R & D org de Canarias level. ITC supports the Island's Gran Canaria (ITC) integral development through the implementation of practices and the deployment of R&D projects in renewable energies, desalination of sea water, biotechnology, amongst others. The cluster aims to promote the development and international competiveness of the Canarian maritime sector. It integrates, strengthens, and ensures the sustainability of the business and agents of the value chain in Maritime the maritime sector. It promotes sectors: ship their international presence and Calle León y repair, increases its technological and Cluster Castillo, 89 — 4ª aquaculture, innovative level, in line with www.clustermc.e Marino- planta, 35004 Las fishing, development policies and social s Marítimo de Palmas de Gran nautical demands. The sectors under the Canarias Canaria sports, umbrella of the cluster include recreation, marine and/or maritime tourism industry, in consistence with the EU’s ‘Blue Growth’. The sectors covered by the cluster include ship repair, infrastructures and maritime transport, aquaculture, marine biotechnology, extractive fishing, nautical sports and

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

Maritime Name of the Main roles and responsibilities Address Website sector(s) stakeholders recreation, R&D in renewable offshore energies, and the auxiliary maritime services. Its mission is to generate and channel the innovative initiatives of tourism businesses in the C/ Alcalde José Cluster island, creating a network of tourism enterprises to undertake Emilio García Tenerife de www.turisfera.or innovative projects at regional, Gómez 9, Recinto Tourism Innovación g Turística national and European level; a Ferial. C.P. 38006, (Turisfera) network that strengthens Santa Cruz de sustainable business models and Tenerife reinvents the unsustainable ones. The mission of the CCTL is to increase excellence, productivity and competitiveness of the Canary Islands' economy as well as strengthening the intermodality and mobility of people and goods, and thus to Centro de generate new value chain for the Cluster Cooperación e whole regional area. The role of Canario de Innovación www.cctl.es Tourism the cluster is to improve the Transporte y empresarial. C/ La competitiveness in the transport Logística Pilli, 1 and logistics sector, focusing on the interrelation between all stakeholders of the whole value chain (producers, buyers, suppliers, educational and research institutions, regulatory authorities, etc.). Improving the quality of life of Plaza Ingeniero dockworkers and the community Manuel Becerra,1 http://fundacion in which they are immersed; Maritime Edif. Puerto 8ª canariabelenmar Belén María promoting the values of Transport/Po ia.com/belen- Fundación solidarity, unity and social rts 35008 Las Palmas maria justice with the aim of achieving de Gran Canaria a more humane and just society Management and operation of the Free Zone of Gran Canaria. It is a public entity, composed by the Ministry of Finance, Government of the Canary C/ Andrés Maritime Consortium http://www.zona Islands, Insular Cabildo of Gran Perdomo, s/n35008 Transport/Po Free Zone of franca.org/ rts Gran Canaria Canaria, the Port Authority of — Las Palmas de Las Palmas, chamber of Gran Canaria Commerce and Confederation of Entrepreneurs of the Canary Islands. C/León y Castillo 24, 1º 35003 Las Cámara de Representation, promotion and Palmas de Gran Comercio, defence of the general interests Canaria Industria y Maritime of commerce, industry, services Navegación www.camaragra Transport/Po and navigation, as well as the Plaza de la de Gran ncanaria.org rts provision of services to agents Candelaria, 1, Canarias y engaged in the activities Edificio Olimpo 4ª Santa Cruz concerned. Planta, 38003 de Tenerife Santa Cruz de Tenerife Representation of dockworkers Plaza de Manuel http://www.estib Maritime Dockworker of the Port of Las Palmas, Becerra nº1. adorescanarios.c

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

Maritime Name of the Main roles and responsibilities Address Website sector(s) stakeholders Transport/Po Labor Union Lanzarote and Fuerteventura Edificio Puerto (8ª om/ rts planta). Las Palmas Association de Gran Canaria (ASEP) Educational and cultural private non-profit organisation. It C/ Tomas Quevedo promotes and organises, along Ramirez, s/n — with other Canarian institutions, Edificio de la Maritime Fundación whichever formatives and Autoridad Portuaria www.fundacionp Transport/Po Puerto de Las cultural initiatives in the scope of de Las Palmas, 2º uertos.com rts Palmas Ports of the Palms activities. It planta has a strong commitment in 35008 Las Palmas developing cooperation with de Gran Canaria western Africa countries. The Metal Federation of Tenerife is to defend and promote the interests of the entrepreneurs of the metal and new technologies Calle Mazo Nº 5 y sectors of Tenerife. It provides 7, 38108, Polígono Federación advice to entrepreneurs in a Ship repair; Industrial Los www.femete.co del Metal de wide array of topics such as nautical Majuelos, San m.es Tenerife access to subsidies, risk recreation Cristóbal de La (FEMETE) prevention, legal, labour and Laguna. fiscal advice. This Federation also provides training in technical matters relevant to the metal sector. The Metal Federation of Las Palmas defends and promotes the interests of the entrepreneurs of the metal and new technologies sectors of Las C/ León y Castillo, Federación Palmas. It provides advice to Ship repair; 89 http://femepa.or del Metal de entrepreneurs in a wide array of nautical 35004 — Palmas g/ Las Palmas topics such as access to recreation de Gran Canaria (FEMEPA) subsidies, risk prevention, legal, labour and fiscal advice. This Federation also provides training in technical matters relevant to the metal sector. The Federation of Fishing guilds gathers the fishing guilds (cofradías) of the Canary Islands. Its roles if to represent Varadero del the interests of fishermen before Muelle, s/n — La http://www.gobc the regional and national Restinga Federación an.es/agricultura governments. The Spanish 38917 Regional de /pesca/entidades Fisheries cofradías are entities of public El Pinar de El Cofradías de pesqueras/cofra law which, besides representing Hierro Canarias dias.html the interest of their associates, La Restinga have a formal role in supporting El Hierro the regional governments in matters related to the fishing activity. The Coastal Action Group of Gran Canaria promotes the Granja Agrícola development and diversification Experimental. Fisheries; Grupo de of the coastal economy of Gran Carretera Gral. del www.gacgrancan aquaculture; Acción Canaria. Is one of the seven Norte, Km. 7,2 aria.com coastal Costero de groups of the Canary Islands. At 35413 — Arucas, tourism Gran Canaria the time of the study this was Las Palmas the only one in operation due to the transitional process between

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

Maritime Name of the Main roles and responsibilities Address Website sector(s) stakeholders the EFF and the EMFF. The Oceanic Platform of the Canary Islands is a Unique Scientific and Technical Infrastructure (ICTS) dedicated to science and technology in the marine and maritime sector in the region. Its mission is the cost-effective combination of PLOCAN services such as observatories, Carretera de (Plataforma test beds, underwater vehicles Taliarte, s/n, www.plocan.eu R&D Oceanográfic support, information technology, 35214 Telde, Las a de and training and innovation hub. Palmas Canarias) Its activity is focused on renewable energies, underwater robotics, safety and security, ocean observation, environmental impact and pollution control or technologies associated with harnessing marine resources. Its mission is to promote the creation and development of innovative technological Parque Promotion of enterprises in Tenerife, trough Av. Constitución nº Científico y entreprenurs the provision of training, advice 12 Recinto Ferial www.pctt.es Tecnológico hip on financing, infrastructures, (Planta Baja) de Tenerife amongst other services. This is promoted by the Cabildo (insular government) of Tenerife. C/ Víctor Hugo, nº 60, C.P. 35006 Las Promotion of tourism in the Palmas de Gran Canary Islands and responsible Canaria of the trade mark ‘Canarias’. www.promoturtu Tourism PROMOTUR PROMOTOUR is a commercial C/ Fomento, 7. rismocanarias.co society of public capital, which is 2ªplanta. Oficina m attached to the Viceconsejería of 11A Tourism of Canarias. 38003 Santa Cruz de Tenerife.

Av. Alcalde José Ramirez The Society for the Economic Bethencourt, 17, Sociedad Development of Canarias is a 35004 Las Palmas para el public enterprise that provides Promotion of de Gran Canaria Desarrollo access to financing to www.sodecan.es entreprenurs Económico de entrepreneurs and enterprises hip Villalba Hervás, 4, Canarias with viable and innovative planta 6 (SODECAN) projects. Santa Cruz de Tenerife. Its mission is to promote economic activities in order to Avda. de la Feria, develop Gran Canaria. It is a número 1, Recinto Sociedad de Promotion of branch of the Cabildo (insular Ferial de Canarias Promoción http://www.speg entreprenurs government) of Gran Canaria. It (Infecar) Económica de c.org/ hip provides training, advice on 35012 Las Palmas Gran Canaria financing, infrastructure, de Gran Canaria. amongst other services to entrepreneurs. The University of Las Palmas de C/Juan de Education, Universidad Gran Canaria covers a large Quesada, nº 30 — www.ulpgc.es R&D de las Palmas array of fields of knowledge. It 35001 Las Palmas

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

Maritime Name of the Main roles and responsibilities Address Website sector(s) stakeholders de Gran also runs the Scientific and de Gran Canaria Canaria Technological Park. The ULPGC’s (ULPGC) research fields include marine science, computer science, telecommunications and electronic technology; economics; development cooperation; renewable energies; environmental conservation and tourism, amongst others. The University of La Laguna Pabellón de covers a large array of fields of Gobierno, C/ Padre knowledge. The ULL’s research Herrera s/n. | Universidad fields include nautical science Education, 38200 | Apartado www.fg.ull.es de la Laguna and technology; physics; R&D Postal 456 | San (ULL) computer science; biology; Cristóbal de La economics; humanities, amongst Laguna others.

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

Mapping Blue Growth and assessing the potential 8 Growth drivers and barriers The following table reports growth drivers and barriers to growth of each maritime activities identified, analysing them in terms of R&D, Access to finance, Infrastructure, Education, training and skills, Public engagement and Local cooperation.

Marine fishing and aquaculture Drivers to growth Barriers for growth Assessment of the potential of deep water fish species e.g. black scabbard fish. Viability of the introduction of new species for aquaculture production e.g. corvina, shrimps, Senegalese sole (inland ponds). Microalgae are produced in the archipelago and have the potential to sustain a blue Fisheries: biotechnology industry. Problems to collect fisheries data in R&D in aquaculture has achieved a landing sites due to the lack of personnel. remarkable level in the Canary Islands. The The monitoring, control and surveillance apparatus face the problem of controlling R&D University of Las Palmas de Gran Canaria (ULPGC) conducts research and provide illegal activities. scientific and technical support to the private sector and to the research and development Aquaculture: apparatus at national and international level. Lack of opportunities in the region for The ULPGC’s Grupo de Investigación en highly qualified aquaculture scientists. Acuicultura (research group in aquaculture) promotes a strategic vision of the aquaculture sector with products of high nutritional quality, innovation in diets, selection of species and multitrophic polyculture. The EMFF and the former instruments (FIFG, EFF) have played a fundamental role in the development of the fishing and aquaculture activity. Public funding from Sociedad de Desarrollo Private financial intermediaries do not Access to de Canarias (SODECAN) is not available for offer specific financial instruments for finance fisheries and aquaculture. The reason is that these activities. SODECAN finances a wide array of activities employing ERDF funds, while primary sectors are basically funded by their own structural funds. The fishing fleet size has been reduced in Fish is preferred fresh by regional order to match fishing possibilities. Current consumers. This fact, together with the port infrastructure seems to satisfy the dependency on imports for processed current needs of the fishing and aquaculture fish, imposes a constraint for the sectors. The aquaculture sector uses mostly development of a processing industry. cages at sea for seabream and seabass. Fish feed is imported and subject to the Microalgae production is being exported to price fluctuations of international different markets. There is only one Infrastructure markets. company carrying out its activities in a plant Microalgae production growth requires installed in one of the centres of the ITC in auxiliary desalination and depuration Gran Canaria. The plant consists in ponds plants and provision of CO which is and equipment to process the production. 2, costly. Especial vehicles for transporting The plant uses brine and desalinated fresh paste of microalgae are also seawater, which are outsourced from a plant required, being this service costly due to next to ITC. It can also use the desalination the relative small size of the production. facilities of ITC. University degrees and post degrees are of The fishing activity has performed as an Education, high quality and considered sufficient for the alternative for idle labour from other training and current state of the activities. Technical sectors. There is a need to qualify skills education (Formación Profesional — FP) for fishermen.

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

Marine fishing and aquaculture Drivers to growth Barriers for growth these activities is also available. There is little generational replacement and it arises as a threat for the activity. There is a need of qualified divers for the aquaculture sector. Conditions of access to third countries’ fishing grounds. This is a key constraint for the growth of the activity. Long administrative processes are required for obtaining permissions for aquaculture production. This is a barrier The public sector is engaged in providing for the development of the activity. support to these sectors, representing its Obtaining permissions may take around 4 interests before the national government. — 5 years due to the many Public Cabildos (insular governments) provide administrative competences and engagement technical and economic support to the environmental concerns. fishing sector (cofradías), aquaculture and Production of corvina, although FLAGs even though cabildos do not have technically viable, faces administrative competences in fisheries matters. restrictions because it is considered as an alien species. Compensation plans are considered unable to counteract the impact of the high transport costs due to insularity and double insularity. Some positive synergies are in place between the cofradías and the aquaculture There are concerns and opposition from sector e.g. provision of ice, cages repair, or sectors of the fishermen in relation to the storing of material in the locals of the Local expansion of marine aquaculture since cofradías. cooperation this activity may have a negative impact The insular and regional governments are on the environment e.g. problems with promoting dialogue trough the creation of escapes from sea cages. round tables for fisheries, aquaculture and recreational fishing.

Desalination of seawater Drivers to growth Barriers for growth The main concern is related to ensuring The Instituto Tecnológico de Canarias (ITC) the quality of the desalinated seawater. and PLOCAN conduct research on adaptation This requires especial efforts such as, for of desalination plants to wind energy (e.g. example, limiting the presence of boron optimal size of the plant in relation to R&D in the water. available wind energy). Particular attention Effluents of the desalination plants have is paid to the use of offshore energy to environmental implications. The brine counteract the barriers imposed by the high resulting from the desalination process dependency on fossil energy. ends up in most of the cases in the sea. Public financing: SODECAN (Canarias) has a credit line for renewable energy self- consumption. This provides opportunities for desalination plants aiming to reduce costs of Private financial intermediaries do not Access to energy. offer specific financial instruments for finance Other instruments are provided by the these activities. Instituto para la Diversificación y Ahorro de Energia (IDAE) and by the Ministry of Industry of Spain. 320 plants seem sufficient to satisfy the current demand. However, the growth of The desalination activity depends on population and tourism may require Infrastructure fossil energy. This is costly and imposes a expansion of capacity. In fact, there are 3 constraint to production. desalination plants which are being installed. There are plans to install 10 more. Education, The activity requires engineers, technicians Postgraduate courses for engineers are training and and workers. There is no ad hoc education no longer taught. A proposal for a new

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

Desalination of seawater Drivers to growth Barriers for growth skills for plants’ staff. The offer of engineers, technical career (FP) did not succeed. technicians and other workers with The growth of the sector will require experience in the sector can satisfy the more qualified personnel. current demand but could be insufficient in the near future. It seems that competences in relation to Planning of desalination of seawater is desalination are dispersed, especially in included in the hydrological plans prepared Public the management of effluents. by the insular governments. The regional engagement Meeting the requirements of the Waters government is in charge of effluents and Framework Directive is hard for the non- production management. capital islands due to the high costs. Communities of users have cooperated during years to obtain agreements with public entities in order to obtain better water Taxes expressly imposed to the prices or to install their own desalination production of desalinated seawater in Local plants. This has been observed in plants powered by their own wind energy cooperation agriculture, industry and tourism sectors. devices (self-consumption) are perceived Cooperation has been carried out to produce as a barrier to sustainable production. wind energy to satisfy the demands of energy of the desalination plants, e.g. Corralejo.

Maritime transport Drivers to growth Barriers for growth The universities of Las Palmas (ULPGC) and Slow adaptation of the available La Laguna (ULL) conduct sound research and R&D technologies for the improvement of development on transport, civil and nautical energy efficiency. engineering. Access to Ports improvements are financed in many N/A finance cases with ERDF funds. The Canary Islands ports (two port authorities, Las Palmas and Santa Cruz de Tenerife and Canary regional ports) seem to satisfy current needs of the transport sectors, mainly for passenger transport It would be necessary to carry out among islands and for cruise traffic. improvements in the adaptation of some Infrastructure In relation to goods transport, there is terminals for cruise traffic and to

reduction of the inventory in warehouses by configure exportable models for the centralizing distribution in large logistics attention of this type of operations centres, which is an advantageous situation as a platform for international transhipment of containers at the main international maritime transport routes. The universities of Las Palmas (ULPGC) and La Laguna (ULL) form graduates in transport and nautical engineering. The maritime Education, schools of the region (FP) offer technical training and N/A degrees and course for skippers. In this skills sense, this sector has an extensive experience, deep knowledge and highly qualified staff Interisland transport is a key factor for regional development. This service is Public subsidized for residents. The government of N/A engagement the Canary Islands has issues a regional platform plan, which includes maritime transport. Local Maritime Cluster 2013-2016 Strategic Plan N/A cooperation

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

Port services Drivers to growth Barriers for growth The universities of Las Palmas (ULPGC) and La Laguna (ULL) conduct sound research and Slowly adaptation of the available development on transport, civil and nautical technologies for the improvement of R&D engineering. Technological institutes (FP), energy efficiency

chambers of commerce, ports and others Insufficient importance (investment) of offer education and training in topics linked industry in R & D, and Innovation with the port activity. Ports improvements are financed in many Access to cases with ERDF funds. For example, N/A finance construction of storage facilities for grain in the Puerto de Las Palmas. If growth is intended there would be a need to enlarge and improve infrastructures. The port of Las Palmas Port infrastructure service is a mature sector has, however, has little room for in Canary Islands, taking into account expansion due to the morphology of the economic and trading values. The port of Las coast. Palmas and Santa Cruz infrastructure seems Conditions of access to third countries Infrastructure to satisfy current needs for the shipping, fishing grounds have strong implications naval and bunkering sectors, amongst for the two main ports in terms of others. There are some immediate needs to handling and preservation of landings. increase the offer of moorings for In the ports dedicated to recreational recreational boats. activities, the demand for space is well above the available supply.

Education, The ULPGC and ULL conduct sound research Insufficient continuous training and training and and development on transport and nautical recycling of port industry staff skills engineering. The Government of Canarias offers fiscal facilities to attract foreign and national Public enterprises (47). In fact, foreign investors are N/A engagement being attracted and provide services e.g. a shipyard for yachts been installed in the port of Santa Cruz. On the one hand, the stakeholders linked to the port of Las Palmas have made a substantial effort to request to the EU renegotiation of fishing agreement Local conditions with Mauritania in order to N/A cooperation reactivate the port activities around landing of fish harvested in Mauritanian EEZ. On the other hand, the important support of the Maritime Cluster 2013-2016 Strategic Plan

(47) http://www.boe.es/diario_boe/txt.php?id=BOE-A-2000-11832.

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

Ship building and repair Drivers to growth Barriers for growth To continue maintaining its leadership, this sector needs to continue conducting The universities of Las Palmas (ULPGC) and R&D and innovation for the transition into R&D La Laguna (ULL) conduct sound research on energy efficiency improvements in the naval and nautical engineering. provision of services and in the compliance with environmental standards The ship repair sector includes many small workshops (small enterprises). Access to finance to small entrepreneurs may face difficulties. SODECAN provides facilitates for entrepreneurs such as guarantees, Access to microcredits, financing of innovation and N/A finance R&D, and co-investment. This funding is not exclusive for this sector. In the other hand, private banks and other financial intermediaries have interest in the offshore oil platform repair and maintenance business. The main ports of Las Palmas and Santa Cruz have adequate infrastructure for ship and oil platform inspection, maintenance and Current capacity does not seem a barrier Infrastructure repair. However, expansion of services to oil to development but will require

platforms, yacht repair and, in general, improvement to satisfy future demands. services to marine craft could require improvement of infrastructures. Training of qualified workers, however, seem to be insufficient to satisfy the increasing demand of specialised The Canarian universities provide sound workers, especially for the revision and upper education. The regional federations of repair of oil platforms. The issue of Education, the metal sector provide training to qualify language is a barrier. 90 % of the training and and requalify workers linked to the metal business is hired by foreign companies skills sector, or even from other sectors, for their thus fluency in English is considered of inception in this promising sector. key relevance. Fit and repair of recreational marine craft faces the lack of specialised personnel in use of fibre glass and other synthetic materials. The Government of Canarias offers fiscal Public facilities to attract foreign and national N/A engagement enterprises. The regional federations of the metal sector Local cooperate with enterprises in training of N/A cooperation personnel.

Coastal tourism Drivers to growth Barriers for growth The RIS3 points out that this sector is of vital importance for the Canary Islands and Links between the academic/education R&D R&D should be prioritized. The ULPGC, ULL world and business are regarded as

and the Instituto Canario de Turismo (ICT) weak. conduct R&D. Public funding: SODECAN has financed some projects in the touristic sector. The financial line for renewable energies and energy Access to efficiency is of particular interest for the N/A finance touristic sector. Others: Fundación Caja Canaria has funded projects on R&D in tourism. A large offer of hotels and other facilities Obsolete accommodation facilities in Infrastructure (e.g. marinas, golf yards). Desalination some of the oldest tourism sites. plants have been installed in islands with no

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

Coastal tourism Drivers to growth Barriers for growth natural water, having allowed the growth of tourism i.e. Lanzarote, and La Gomera. Lack of qualification and certification in the tourism sector. The activity is characterised by high seasonality and thus a large proportion of staff is temporal. There is substantial expertise Education, The two Canarian universities, the ICT and in the sector but in most cases is training and various technical institutes (FP) offer empirical. skills education on touristic topics. Activities such as nautical tourism requires qualified personnel e.g. manager of marinas, whale watching operators, cultural tourism, etc. and in general formal qualifications to avoid informal operators. Initiatives at local levels such as ‘Ciudad del Mar’ led by the municipality of Las Palmas de Gran Canaria attempt to promote the large array of economic activities around the Public littoral. Museums to attract tourists and N/A engagement rescue traditional economic activities of coastal communities are being created by cabildos insulares e.g the salt museum in Tenefé. Initiatives such as associations to install desalinations plants in islands with no natural water and high tourism potential are examples of cooperation in the touristic Local sector. N/A cooperation The FLAGs have promoted development of projects to diversify the fishing activity such as pesca-tourism and others that are based on cultural attractiveness of the regional littoral.

Cruise tourism Drivers to growth Barriers for growth R& D N/A N/A

Access to N/A N/A finance Investments have been made in ports The offer of urban attractions and Infrastructure infrastructures and facilities e.g. Puerto services for cruisers arriving to the

Deportivo de las Palmas. islands in a stop are regarded as limited. Education, Training on shipping and logistics is training and N/A available. skills Public Awareness of public authorities of N/A engagement development potentialities Local authorities are aware of the Local opportunities provided by this sub-sector N/A cooperation and steps are being made to improve ports facilities

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

8.1 Synoptic view of legislative, non-legislative and financial growth drivers and barriers The following table reports a synoptic view of main growth drivers and barriers grouping them under legislative, non-legislative and financial frames Growth drivers ACTIVITY LEGISLATIVE NON-LEGISLATIVE FINANCIAL The creation of an ad  Research has identified a hoc compensation great potential for the EMFF is of key mechanism for exploitation of deep water importance for the transport costs in the species. development of the Marine fishing fishing and  Research has shown the activity as it has been and aquaculture aquaculture sector is technical viability for the the case of former a key driver for the production of high value instruments (FIFG and development of the species such as corvina, EFF). activity in the region Senegalese sole and (48). shrimps. A credit line is R&D is a key driver and the provided by SODECAN Desalination of ITC is devoting efforts to adapt for energy self- No driver identified. seawater desalination plants to wind consumption although energy. not exclusively devoted to this sector. Although not a legislative measure per se the  Private initiatives such as implantation of the the maritime cluster of the Smart Strategy Canary Islands gather Maritime (RIS3) stresses the relevant stakeholders with No driver identified. transport importance of this the aim of promoting blue sector and promotes growth. its development  Transport costs are highly through a most subsidized. efficient use of EU funding. Port services seem to satisfy current needs the growth of The ERDF is an the offshore sector and of Port services Not identified. essential driver in the nautical activities are development of ports. demanding improvements in ports infrastructures.  There are not specific financial instruments for this activity. The ship repair sector is made of many small enterprises, Private initiatives such as the which can apply to maritime cluster of the Canary Ship building SODECAN financial Not identified. Islands gather relevant and repair instruments. stakeholders with the aim of  The private promoting blue growth. finance sector seems interested in the offshore activity. In fact, some banks are engaged in the Maritime Cluster.  Emerging activities having Coastal tourism Not identified. No driver identified. the marine environment

(48) POSEICAN was the former instrument.

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Growth drivers ACTIVITY LEGISLATIVE NON-LEGISLATIVE FINANCIAL and its living and non- living resources as a source of experiences.  New cultural attractions such as experiencing the way of living of coastal communities e.g. net making, carpintería de rivera, etc. Private initiatives such as the Association cruises in the Atlantic Islands gather relevant Cruise tourism Not identified. stakeholders with the aim of No driver identified. promoting new routes and alternatives to combat seasonality.

Barriers to growth ACTIVITY LEGISLATIVE NON-LEGISLATIVE FINANCIAL Marine fishing  Restricted fishing  Lack of interest of the new  High dependency and aquaculture opportunities for generations in the fishing on the EMFF. some of the activity.  Efforts deployed species of key  Most of the fishing fleet is by the EU in importance for aged. compensating the sector e.g.  Difficulties in the control of transport costs are Bluefin tuna. the recreational fishing considered  Difficulties to activity and IUU fishing. insufficient to regulate the  The processing sector has address the expansion of the lost competitiveness and problem of recreational has limited perspectives of insularity and fishing activity. development. remoteness.  Extremely long administrative processes for obtaining aquaculture concessions.  Administrative barriers to the introduction of species of proven technical viability.  Direct foreign and regional investment is discouraged by the long administrative processes for obtaining aquaculture concessions. Desalination of Taxes to self- Strong dependency on fossil Not identified seawater consumption are energy. perceived as a barrier to the use of alternatives sources of energy. Maritime Not identified.  Some regional routes tend Not identified. transport to concentrate most of the regional maritime traffic.  Limited generational relief of crews. Port services Not identified. Although port services seem to Not identified. satisfy current needs the expansion of the offshore sector and of the nautical

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Barriers to growth ACTIVITY LEGISLATIVE NON-LEGISLATIVE FINANCIAL activities will demand improvements in ports infrastructures. Ship building Not identified.  The offshore activity and Not identified. and repair particularly the activity of oil platform repair and maintenance activity faces the fluctuations of the oil barrel price.  Lack of technical skills and language abilities in spite of the efforts being carried out by diverse actors Coastal tourism Not identified.  Training for low and mid- Not identified. level workers.  High seasonality hardens professionalization in the activity.  Difficulties to adapt training programs to the emerging needs of this sector e.g. nature watching, nautical services. Cruise tourism Not identified.  Seasonality is regarded as Not identified. a barrier for the future of the sector.  The offer of urban attractions and services for cruisers arriving to the islands in a stop are regarded as limited.

9 Future potential for mature and pre-developing activities 9.1 Fisheries and aquaculture

 Potential for employment Regarding fisheries, the employment basically requires workers with low and mid- level qualifications. The fishing activity provides jobs for stable and temporary workers linked to the coastal communities. Access to third country waters is a key factor to sustain employment in the fishing activity. This has implications to crews and port activities taking place around fish harvested in third countries waters. There is a need to qualify workers and schools are available in the archipelago to train professional fishermen. The issue of low generational relief threatens the future of the fishing activity. The aquaculture sector in turn absorbs highly qualified professionals (university degree) and mid-level qualified technicians (Formación Profesional — FP). In relation to R + D scientists in the IEO, the ULPGC and ULL conduct research on fisheries and aquaculture. BEA and ITC conduct research on algae production.

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 Potential for value added There is potential to develop deep-sea fishing, being deep-water species well appreciated in other markets. These species could be even introduced in the regional market. This may require market studies to assess the potential market and introduction strategies. Exploiting these species requires employing new methods or adapting those applied in other regions. Access to third country waters is a key factor to ensure value adding in the activity, especially in the processing sector. Aquaculture in turn has great potential for value added, especially if culture of high value species such as Senegalese sole and corvina develop. Microalgae production, in turn, can provide the basis for a biotechnology sector.

 Potential for competitiveness: Human resources are available but there is a need for qualification of workers. Generational relief arises as Availability of human problem especially for the fishing sector. There is a need resources adequately skilled for new qualifications in aquaculture i.e. specialised divers.

Aquaculture has the potential to attract FDI. Recently a delegation of Korea visited the archipelago to scout Potential for attracting FDI potential business opportunities in various sectors, including aquaculture. Extremely long administrative process may discourage foreign investments.

Availability of public funds FEMP, Compensation plan for additional costs

Modern research facilities are available for fisheries and aquaculture. Infrastructure for fisheries and aquaculture Availability of support seems sufficient at present. Consider that the fishing fleet sectors / facilities (e.g. is being reduced and that production in aquaculture research, infrastructures, should be expanded when the requested permissions are etc.) conceded. Interviewees point out that new permissions are not being conceded until the PROAC is approved.

Traditional aquaculture products (seabream, seabass) are well positioned in international markets. Good natural Potential in terms of conditions and scientific and technical capabilities provide positioning in the a solid basis for species such as corvina and Senegalese international market sole, amongst others, to compete in international markets. Microalgae production is being exported.

9.2 Desalination of seawater

 Potential for employment The activity demands qualified and experienced personnel such as engineers and technicians. Some of the islands are heavily dependent on desalinated seawater so desalination plants placed there should have permanent employment needs. The sector is envisaged to growth so qualified personnel will be needed.

 Potential for value added This activity is of vital importance for the local populations and for the tourism sector. Value added could be increased by reducing the high costs of the dependency on fossil energy. Initiatives carried out to power desalination plants with renewable energies may counteract this problem in the near future.

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 Potential for competitiveness: Engineers, technicians and experienced workers are Availability of human available. However, there is no specific high/medium level resources adequately skilled education for this sector. Low. The sector is basically in hands of the public and Potential for attracting FDI local private sector, being subsidized. ERDF (EU), Ministry of Industry (ES), FEDECAN Availability of public funds (Canarias) Availability of support Research infrastructure and highly trained scientists are sectors / facilities (e.g. available to back up the development of this sector i.e. research, infrastructures, ITC, PLOCAN. etc.) There is potential to export the substantial expertise in Potential in terms of this sector. In fact, various Canarian small size firms positioning in the conduct engineering design and provide technical advice international market on development of the desalination sectors in other regions of the world e.g. Africa.

9.3 Maritime transport

 Potential for employment The growth of transport of goods and passengers, and of activities related to the naval and nautical activities will have positive implications for employment creation. According to the Maritime Cluster, there will be important job opportunities in relation to energy saving and efficiency in ships and ports and in relation to technicians in environmental management. Moreover, new transport routes to the African occidental coast will involve a relevant number of direct and indirect jobs (i.e. Puerto del Rosario-Tarfaya).

 Potential for value added The potential introduction of alternative fuels in ships (especially LNG) may have positive effects in value added.

 Potential for competitiveness: There is availability of port personnel adequately skilled. Availability of human The universities, technological institutes (FP), and others resources adequately offer education and training in topics linked with maritime skilled; transport. High potential to attract foreign operators due to the Potential for attracting FDI; potential expansion of maritime routes. Availability of public funds; N/A Availability of support sectors / facilities (e.g. Port infrastructures seem sufficient for current demands research, infrastructures, and are also being improved. etc.) Potential in terms of positioning in the N/A international market

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9.4 Ports

 Potential for employment The growth of transport of goods and of activities related to the naval and nautical activities will have positive implications to employment creation. There is hope that renegotiation of access agreements to foreign fishing grounds would allow recovering of employment levels in port activities related to handling and preservation of fish. The construction of new port areas (marina, fishing and commercial) and port services (i.e. Puerto de la Cruz) will involve a relevant number of direct and indirect jobs.

 Potential for value added Ports are economic engines in the diverse islands, especially in the capital islands. The diverse activities linked to the ports already generate high value added. The privileged position of the archipelago and its technical and fiscal facilities offer promising opportunities for value added. There is still room for value added in the transport of goods, naval sector, nautical activities, and bunkering, amongst others. The storage of food products in the main ports of the archipelago also arises as an opportunity for growth. In fact, the port of Las Palmas is conducting negotiations with grain producer is Paraguay and Uruguay to store grain in the port facilities. The ports are also becoming hubs for humanitarian aid for Western African countries.

 Potential for competitiveness: There is availability of port personnel adequately skilled. Diversification and expansion of activities, especially of Availability of human those linked to the offshore activities will require qualified resources adequately personnel. The universities, technological institutes (FP), skilled; chambers of commerce, ports and others offer education and training in topics linked with the port activity. Ports are public and belong to the national / regional governments. However, ports are productive platforms where many private businesses operate. Some of the Potential for attracting FDI; sectors operating in the ports have the potential to attract foreign companies e.g. ship repair, fit and repair of recreational boats. Availability of public funds; ERDF, regional funds Availability of support Port infrastructures seem sufficient for current demands sectors / facilities (e.g. and are also being improved. Future growth of activities research, infrastructures, linked to the ports requires improvement and etc.) enlargement of ports facilities. The archipelago’s ports are already well positioned at Potential in terms of international level. There is still room, however, to turn positioning in the the ports in an international hub for transport of goods, international market cruises, fishing and naval repair and other services.

9.5 Ship building and repair

 Potential for employment High and medium skill jobs are being created. Highly specialised training is necessary to carry out these activities so once workers are qualified they should be hired for longer periods. The growth of the activity and the promising opportunities may require personnel with stable employment conditions. It is worth pointing out, however, that the activity of offshore platform repair is subject to the fluctuations of oil price (see Section 1.6).

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 Potential for value added This activity has a great potential for value adding. The sector basically consists in few large shipyards and many microenterprises (around 67 enterprises in 2015). The impact on these operators is high in economic and employment terms. This activity also requires important investments in training and equipment. This fact together with sound research and development in the region i.e. PLOCAN, ITC can generate a critical mass that can sustain future developments in marine technology such as, for example, blue renewable energies (wind and wave energy).

 Potential for competitiveness: Engineers and technicians are available for ship repair. However, human resources able to address the new needs of the offshore platforms revision, maintenance and repair seem to be limited. Efforts are being carried out by the regional federations of the metal sector to Availability of human qualify personnel. There is also a need for professional resources adequately skilled divers specialized in underwater welding. There is also a lack of qualified technicians in the use of fibre glass and other synthetic materials for fit and repair of recreational boats. Lack of language skills (i.e. English) is a serious gap for the development of the activity. The offshore platform repair activity is attracting foreign interest (e.g. visit of Korean delegation). Repair of large Potential for attracting FDI luxury yachts is also attracting the interest of foreign investors. A large Italian firm specialised in yacht is installing a shipyard in Tenerife. Availability of public funds Ministerio de Industria; SODECAN The Canarian universities and PLOCAN provide sound Availability of support upper education and research and development. sectors / facilities (e.g. Currently, infrastructure seems to be appropriate. research, infrastructures, However, the growth of the offshore oil platform and etc.) yacht fit and repair business will require enlargement of naval infrastructure. The sector is already a referent in the mid-Atlantic for Potential in terms of marine craft repair and maintenance. Interviewees inform positioning in the that around 90 % of services are hired by foreign international market companies.

9.6 Coastal tourism

 Potential for employment In general terms, the tourism activity is the main sector in terms of employment. The coastal and maritime activities have a great potential for creating employment. The old model of sun and beach is being replaced by a model that makes a more comprehensive use of the marine space and its resources. This will provide employment opportunities for coastal communities. It will also require qualification for activities such as nautical activities, whale watching, cultural routes, etc.

 Potential for value added Expansion of the offer of coastal and maritime activities may provide more opportunities for value adding that the traditional touristic model of sun and beach. New activities generate a need for services such as training, specialized shops, repair of marine craft, etc. Arrival of cruisers to the region has also great potential of value adding and new alternatives to attract cruisers to the island are being developed.

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 Potential for competitiveness: Experience in this sector is high. However, qualification Availability of human and professionalization is required to satisfy a touristic resources adequately skilled sector with an increasing demand of new forms of recreational activities. FDI has traditionally being interested in investing in the Potential for attracting FDI region. The emerging forms of tourism would still attract new FDIs. Availability of public funds SODECAN As mentioned previously hotels and other touristic Availability of support infrastructures are ageing in some of the oldest touristic sectors / facilities (e.g. sites and require modernisation. Desalination of research, infrastructures, seawater infrastructure is available and seems to satisfy etc.) the current demand. Enlargement of this capacity is envisaged in the near future. Potential in terms of The region is already a world referent in tourism. The positioning in the new offer of activities has a great potential to attract international market tourists looking for a diversified offer.

9.7 Cruise tourism

 Potential for employment The activity already provides employment for qualified personnel at ports and in other services linked to the tourist offer of the cities and other attractions. So the activity provides employment for employment at all levels of qualification.

 Potential for value added Cooperation between the cruises and tourist operators may create good synergies, especially in relation to a touristic offer for stopovers at ports, cities or nearby natural attractions. Cooperation with other ports in the region would yield good results in making the sea basin more competitive, in terms of developing new circuits outside the peak seasons.

 Potential for competitiveness: Experience in this sector is high. However, qualification Availability of human and professionalization is required to offer urban resources adequately skilled services to cruise tourists doing a call in the archipelago. Potential for attracting FDI N/A Availability of public funds N/A Availability of support Port infrastructures seem sufficient for current demands sectors / facilities (e.g. and are also being improved. Future growth of activities research, infrastructures, linked to the ports requires improvement and etc.) enlargement of ports facilities. Cooperation with other archipelagos to develop circuits Potential in terms of and associated offer of facilities and infrastructures in positioning in the combination with tourism operators may improve international market competitiveness.

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9.8 Blue biotechnology (pre-development stage)

 Potential for employment This activity is highly intensive in technology and capital so potential employment positions would likely include university graduates and postgraduates and lab technicians.

 Potential for value added Currently, the activity of microalgae production has little value added since products are commercialized in powder and dehydrated. There is a high potential for value added trough extraction of bioactive compounds.

 Potential for competitiveness Scientists graduated in the Sea Sciences faculty of the ULPG, industrial engineers, and technologists coming from the school of aquaculture run by the ULPGC constitute the human resources available for the Availability of human development of the biotechnological activity. Since the resources adequately skilled activity is new specialisation will be required. A mentioned previously, production of microalgae is ongoing but a blue biotechnology sector based on microalgae is not yet in place. High costs of investments and transport may impose a Potential for attracting FDI barrier for foreign investments. Progresses in microalgae production has been achieved with aid of the EFF. The sector of microalgae production is considered as an aquaculture sector, thus eligible for Availability of public funds funding by the EMFF. But public funds are not available for a biotechnology sector based on microalgae production. ULPG, BEA, PEBA and ITC have labs and infrastructures to conduct algae research on identification and Availability of support production. An enterprise is installed in Pozo Izquierdo sectors / facilities (e.g. (one of the centres of ITC) and produces microalgae research, infrastructures, dehydrated and in powder. Desalination facilities of ITC, etc.) and of a desalination plant next to ITC, have been of key importance for the development of the production. Bioactive compounds have an increasing global demand for food, cosmetic and pharmacy industries. USA Potential in terms of (Hawaii) and China are two of the world leaders in this positioning in the sector. Achieving that level is costly but natural international market conditions and qualified personnel constitute key inputs that are already in place.

9.9 Marine renewable energies (pre-development state)

 Potential for employment This activity is intensive in technology and capital and could create jobs for personnel with high and medium qualifications. The activity will require services from other activities such as workshops in the metal sector, shipyards, amongst others.

 Potential for value added There is high potential for value added. Renewable energies constitute an alternative for reducing dependency from fossil energies. Besides this research and development

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in matters concerning marine renewable energies and the related infrastructure being developed offer the opportunity to transform the Canary Islands into an international lab for the testing of marine technologies.

 Potential for competitiveness: PLOCAN, ITC and the ULPG and ULL provide sound education in sea sciences, naval and nautical engineering, while other institutions offer mid-level education in metal Availability of human and electric topics. Expertise in on land renewable resources adequately energies may also contribute to the take-off of the skilled activity. Interviewees inform that there is still a long way to go before putting offshore and wave energy devices into commercial operation. At this stage is hard to envisage the response of FDI in this sector. National operators, however, are being Potential for attracting FDI attracted and conducting investments on technological developments. Horizon 2020. ERDF and regional government trough Availability of public funds SODECAN. PLOCAN and ITC provide infrastructure for R&D. Knowledge and infrastructures and the natural oceanographic conditions of the archipelago provides the opportunity of transforming the Canary Islands into an Availability of support international platform for the testing of new blue energy sectors / facilities (e.g. developments. The regional government is requesting to research, infrastructures, Spain the recognition of competences in relation to etc.) marine renewable energies. The regional government is devoting funds to PLOCAN, which has great potential to become a world reference as a platform for development and testing of marine technologies. Knowledge, infrastructures and the natural oceanographic conditions of the archipelago provide the opportunity of transforming the Canary Islands into an international Potential in terms of laboratory for the testing of new blue energy positioning in the developments. In fact, currently a German consortium is international market testing a new type of aero generator in the archipelago. Interviewees, however, consider that there is still a long way to turn blue energy into a commercial sector in the archipelago.

9.10 Synoptic view of the future potential by activity The following table reports a synoptic view of main future potential for each activity grouping them by ‘Potential for employment’, ‘Potential for value added’ and ‘Potential for competitiveness.

ACTIVITY Potential for Potential for value Potential for employment added competitiveness  The fishing sector  Deep water  The fishing activity faces has a potential for resources arise as the problem of low diversification e.g. an alternative for generational relief, which Fisheries and deep-water species, diversifying the restricts the availability of aquaculture pesca-tourism. But it supply of fish. human resources. does not necessarily  Low possibilities  The activity has mean more for processing performed as an escape employment, at least activities due to valve in times of crisis

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ACTIVITY Potential for Potential for value Potential for employment added competitiveness in the extraction the local absorbing idle workers activity. The fleet is preference for from other sectors, who being reduced in fresh fish. tend to return to their size. Traditional forms activities. So, there is a  The aquaculture of processing such lack of professionalization. activity in turn has a as fish in glass  There are highly trained potential for jars could be of personnel for aquaculture employment interest for foreign production and research. creation, especially delicatessen  State of the art R&D for staff with high markets. infrastructures are in and medium  Technical viability place. qualifications. of high value  Fishing lacks ice Creation of species such as production and the fleet is employment is corvina and aged. associated with new Senegalese sole.  Modern infrastructures are concessions but  Potential for the in place for aquaculture currently this growth of the production. process is long and microalgae  Aquaculture products are depends on the production to already well positioned in approval of the satisfy foreign the international market. sector’s strategy. needs and local Demonstrated technical needs should a viability for other species blue such as corvina and biotechnological Senegalese sole provides activity starts. opportunities for obtaining a larger share of the international market.  The aquaculture activity has a potential to attract FDI but long administrative procedures discourage investments. The activity has a large  This activity is basically in potential for expansion hands of regional due to the growing investors and has little needs of the touristic appeal for FDI. Value added could be sector and, in general, of  The substantial expertise improved by reducing Desalination population. in this sector is being the costs of high of seawater This sector is envisaged exported and transference dependency on fossil to growth. So, there is a of technology to energies. potential for developing nations employment for qualified positions the archipelago personnel FP technicians as a referent in this and engineers. activity.  The growth of transport of goods and passengers, and of activities related to the naval and nautical activities The potential have positive introduction of There is availability of implications for alternative fuels in personnel adequately skilled. Maritime employment ships (especially LNG) Universities, technical schools transport creation. may have positive and other institutions offer  There is a potential effects in value training. for job creation in added. relation to energy saving and efficiency in ships and ports and in relation to technicians in environmental

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ACTIVITY Potential for Potential for value Potential for employment added competitiveness management.  In the other hand, the activity faces low generational relief, especially for crews.  The growth of transport of goods and of activities related to the naval and nautical activities has a potential for  The position of the employment archipelago and its creation. technical and fiscal  The storage of food  Renegotiation of facilities offer products also arises as an access agreements opportunities for opportunity for growth to foreign fishing value added. e.g. storage of grain from grounds would allow  There is still room Ports South America. recovering of for value added in  The ports are also employment levels the transport of becoming hubs for in port activities goods, naval humanitarian aid for related to fishing. sector, nautical Western African countries.  The construction of activities, and new port areas bunkering, (marina, fishing and amongst others. commercial) and port services has the potential to involve a relevant number of direct and indirect jobs.  Engineers and technicians are available for ship repair. However, human resources able to address  The potential of the This activity has a the new needs of the activity (especially large potential for offshore platforms seem the potential offered value adding. The to be limited. by the offshore sector basically  There is also a lack of sector) is high and consists in few large qualified technicians in the requires shipyards and many use synthetic materials for qualifications and microenterprises. The fit& repair of recreational certification. It is impact on these boats. worth pointing out, operators is high in  The offshore platform however, that the economic and repair activity is attracting activity of offshore employment terms. foreign potential investors Ship building platform repair is This fact together with (e.g. Asian and repair subject to the sound research and entrepreneurs). fluctuations of oil development in the  Repair of large luxury price and it implies region can generate a yachts is also attracting fluctuations in jobs critical mass that can FDI. offer. sustain future  The Canarian universities  The growth of developments in technological institutes nautical activities marine technology provide sound upper also offers a good such as, for example, education and research. potential for blue renewable  Currently, infrastructure technicians with low energies (wind and seems to be appropriate. and mid-level of wave energy). The growth of the offshore qualification. and nautical activities, however, will require enlargement of naval infrastructure.

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ACTIVITY Potential for Potential for value Potential for employment added competitiveness  The sector is already a referent in the mid- Atlantic for marine craft repair and maintenance.  Experience in this sector is  Expansion of the high. However, offer of coastal qualification and and maritime professionalization is activities may required to satisfy a provide more touristic sector with an opportunities for increasing demand of new value adding than The coastal and forms of recreational the traditional maritime activities have activities e.g. cultural touristic model of an important potential activities, nature sun and beach. for creating observation, etc. New activities employment. The new  FDI has traditionally being generate a need touristic model makes a interested in investing in Coastal for services such more comprehensive use the region. The emerging tourism as training, of the marine space and forms of tourism would specialized shops, its resources. This has a still attract new FDIs. repair of marine potential for  Some touristic craft, etc. employment infrastructures e.g. hotels,  Arrival of cruisers opportunities for coastal apartments are ageing to the region has communities. and require also great modernisation. potential of value  The region is already a adding and new world referent in tourism. alternatives to The new offer of activities attract cruisers to has a great potential to the island are attract tourists looking for being developed. a diversified offer.  Port infrastructures seem sufficient for current Cooperation between demands and are also the cruises and tourist being improved. The expansion of the operators created  Cooperation with other sector, new routes and good synergies, archipelagos to develop Cruise cooperation within the especially in relation circuits and associated tourism sea basin has a potential to a touristic offer for offer of facilities and for employment stopovers at ports, infrastructures, in creation. cities or nearby combination with tourism natural attractions. operators, has the potential to improve competitiveness.  Blue biotechnology  Scientists, industrial based on microalgae engineers, and is highly intensive in aquaculture technologists technology and constitute the human capital. So, potential resources available for the A biotech activity employment development of the based on microalgae positions would activity. Nonetheless, the Blue production has a likely include activity will require biotechnology meaningful potential university graduates training for specialisation. (pre- for value added given and postgraduates,  High costs of investments development the high demand for and lab technicians. and transport may impose state) bioactive compounds  Technicians in a barrier for foreign in international aquaculture are investments. markets. already working in  Financial constraints are microalgae strong due to the high production (a branch investments required, of the regional especially on equipment aquaculture sector). for extraction of bioactive

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ACTIVITY Potential for Potential for value Potential for employment added competitiveness compounds. The FEMP does not provide funds for this kind of investment.  Labs and infrastructures are available to conduct algae research on identification and production. Desalination facilities are available for the development of the microalgae production, which is the basis of the potential blue biotech sector  Bioactive compounds have an increasing global demand for food, cosmetic and pharmacy industries. Taking advantage of this demand is costly but natural conditions and qualified personnel constitute key inputs that are already in place.  The R&D and academia  There is high systems provide sound potential for value education in sea sciences, added. Renewable naval and nautical energies constitute engineering, while other an alternative for institutions offer mid-level reducing education in metal and This activity is intensive dependency from electric topics. in technology and capital fossil energies.  At this stage is hard to and could create jobs for  Besides this Marine envisage the response of high and medium research and renewable FDI in this sector. qualified staff. The development in energies However, national and activity will require matters (pre- international companies services from other concerning marine development are developing prototype activities such as metal renewable state) infrastructures to be sector and shipyards, energies, and the tested in the region. amongst others. related  Knowledge and R&D infrastructure, infrastructures and the have the potential oceanographic conditions to transform the of the archipelago have Canary Islands the potential of into a lab for the transforming the Canary testing of marine Islands into a world technologies. referent in this sector.

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10 Investments opportunities Fisheries and aquaculture: The fleet is aged (average 35 years) so renovation of the fishing fleet would be required to enhance security on board and fish preservation facilities. Provision of ice could be a critical factor at certain times of the year. Investment is required to enlarge ice production capacity. Exploitation of deep-sea resources may arise as an investment opportunity i.e. new gear would be required. In contrast, fish processing has little potential for growth. The aquaculture activity requires production diversification, currently based on two species i.e. seabream and seabass. Production of Senegalese sole requires investment in on land infrastructure. Cultivation of microalgae requires desalination of seawater facilities to obtain brine and water. In turn, depuration facilities are also needed. Self-supply of CO2 could reduce the high costs of acquiring this input to other companies. Desalination: Enlargement of desalination capacity will be needed in the near future due to growth of tourism and population. There is a need to reduce dependency on fossil energies for the production of water. The use of renewable energies to supply energy to the desalination plants requires investment in R&D and infrastructure. Transport of passengers and ports: Interisland transport will require investment to satisfy the increasing demand of transport of passengers and goods. Port infrastructures will require improvement and expansion (where possible, due to space constraints) to satisfy the envisaged demand of services for storage, transport of goods and passengers, bunkering, nautical activities, and offshore oil platforms, amongst others. Shipbuilding and repair: The growth of the offshore oil platform and yacht fit and repair businesses will require enlargement of naval infrastructures and investment in training of personnel to address the needs of the offshore platforms and of large recreational vessels. Training of personnel and international recognised qualifications are also needed and will require investment in training facilities for professional divers and simulation of underwater working conditions. Some preliminary initiatives are being conducted by private operators. Coastal and cruise tourism: Renewal of the accommodation infrastructure is required in the oldest touristic sites. It is envisaged that nautical activities will growth so increase of the offer of moorings should be carried out. Urban facilities and touristic offer for cruisers doing a call in the region arise also as an opportunity for attracting cruises to the region. Blue biotechnology (pre-development stage): Extraction of the bioactive compounds, which are highly appreciated in international markets, could require substantial investments. Freeze-dying of the microalgae also requires costly equipment. Blue energies (pre-development stage): There is still a considerable effort to put marine wind farms and wave energy devices into operation. Investments are specially required in the field of R&D, where PLOCAN has great potential to provide sound technical support for the future regional offshore renewable sector and to foreign initiatives.

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

Identifying public and private intervention 11 Potential financial, legislative and non-legislative measures for stimulating growth Below, Logical diagrams used for the analysis have been reported. Figure 14 — Logical diagram for fishery and aquaculture

In terms of infrastructure, the Canary Islands’ Strategic Plan for Fisheries addresses the need to increase the efficiency of the fishing operations, while providing security to crews. The Strategic Plan for Aquaculture promotes competitiveness in the aquaculture activity by diversifying the offer of species, amongst other issues. The RIS3 also remarks the importance of transforming the fisheries and aquaculture sector into a competitive an environmental friendly sector, while improving fish processing, labelling and certification. As for research, the fisheries strategy addresses the need to enhance R&D and innovation, especially in the field of efficiency of fishing operations on board with special attention to energy saving and efficiency. The aquaculture strategy in turn aims at R&D in diversification of the production. The RIS3 addresses the issue of reduction of carbon footprint in the fishing activity. It is worth underlining that the sectorial plans pay little attention to R&D in the field of fish processing to add value to the fishing and aquaculture production. This is an activity that being transversal to both sub-sectors could be explored as an alternative to add value to the production, which is mostly traded fresh due to the strong regional preference for fresh products. Market research projects aimed at identifying market niches for processed products in local and foreign markets should be conducted. Developing R&D in fish processing should also be conducted if market research identifies market niches for new fish products. Market research for commercialization of species such as deep-water species in regional and international markets should also be conducted. R&D in development of new techniques for deep sea fishing and preservation on board should also be carried out. Regarding capacity building the Canary Islands seems to possess the institutional and legal framework to promote the fishing activity. In general, the regional government

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

has no competences in fisheries management and its role is to regulate the activity in internal waters and support their fishing fleet and related activities. In relation to aquaculture competences are transferred to the regional government but coordination has to be made with other administrative instances at regional and national level which may retard decisions, especially in terms of concessions. As for education and training these needs are addressed in the sectorial plans, however, the creation of degrees and training offer in fisheries and aquaculture is not competence of the government’s fisheries branch and it requires coordination with other administrative instances. There appears to be a need to carry out projects aimed at developing curricula to create low and mid-level education for fishermen to address a new perspective of the fishing activity linked to pesca-tourism and promotion of the natural and cultural wealth of the archipelagos coasts. In the field of aquaculture technicians specialized in diving and able to operate small auxiliary boats are required. As for finance, there is limited access to private funding and both sub-sectors rely on the EMFF. This structural fund has supported the growth of the activities and seems to satisfy the needs. In spite of this, the Compensation plan for transport costs is considered insufficient to satisfy the needs of the fishery sector due to the double insularity issue, which increases transport costs. In relation to data, there is little availability of data on socioeconomic variables such as GVA, employment and turnover to back up socioeconomic analysis. These data are usually offered aggregated for both sub-sectors or even aggregated with agriculture and other primary sectors and provided by three different sources. Data for scientific purposes is collected by the IEO and seems to need reinforcing at landing sites. Regarding cooperation with neighbours, the need to cooperate with other archipelagos in Macaronesia is being duly addressed in the framework of the MAC program, where Canary Islands’ take in many cases the leading role. Coordination with the fishing sectors of the Portuguese ORs is conducted in the framework of the Advisory Council (AC) of the South Western Waters. These stakeholders will be also engaged in the new AC of the ORs. Thus, the regional fishing sector is active in participation and aligned with the objectives of the CFP. Figure 15 — Logical diagram for desalinisation of seawater

The Plan of eco-management addresses the need to improve energy efficiency and reduction of dependency of fossil energies, the use of renewable energies emerges as an alternative to diminish such dependency. The RIS3 also addresses this need and promote the use of renewable energies. There is still, however, a long way to surpass technical problems related to connection of this form of energy to the grid. Additional projects should be carried out in relation to solve these technical difficulties. In addition,

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

experiences in the region with self-consumption show also that non-technical problems such as specific taxes for this alternative use of energy can hamper private initiatives. Another need emerged which requires investment in infrastructure such as the treatment of effluents and improvement of water quality. The Plan of eco-management and the RIS3 address these needs. Advances have been already made by ITC in relation to these needs. The growth of the tourism activity will demand expansion of the current desalination capacity, especially in islands where no natural water is available. The Canary Island’s plans mentioned previously recognize the increasing needs of water and promote a desalination activity with low dependency on fossil energies. In terms of capacity building the institutional framework is disperse between the insular government and the regional government. Development of water plans have to be consistent with the EU water framework directive. This seems a heavy burden for non- capital islands and would require further actions in terms of funding and technical support. Regarding education and training, the sector needs technicians to address the envisaged expansion of the sector. Training offer at mid-level and postgraduate studies for engineers (e.g. a master programme) are envisaged needs. The Eco- management plan and the RIS3 do not address these needs specifically but highlight the needs for technological innovation, which will require highly specialised personnel. These educational needs require a coordination effort amongst regional and national government branches. Access to finance is eminently public i.e. SODECAN (energy efficiency) and Ministry of Industry for infrastructure. Regarding data collection, there is not availability of data about socioeconomic variables for this sector. Data is provided for the broad category of collection, distribution and depuration of water. These data is highly useful to understand the relevance of the desalination sector and should be making available to the public. It is suggested to gather all data relevant to sectors linked to the Blue Economy and make it available for interested parties. This will be a means of understanding the weight of the blue economy in the regional economy. Cooperation with neighbours is required and is currently been carried out in the framework of the MAC program. This is particularly relevant in relation to the increasing needs of water in Cape Verde. This cooperation should be continued. Figure 16 — Logical diagram for maritime transport and ports

The plans of the Autonomous ports (Canary Islands) and State ports (Spain) have general objectives that address the main infrastructure needs of the archipelago. It is worth mentioning that infrastructures projects are co-financed by the ERDF. In relation to

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

research the PITVI emphasises the role of R+D and innovation in port management. This is in line with the identified needs of environmental management in ports. Other needs are envisaged such as improvement of energy efficiency and zero emissions in maritime transport. Regarding capacity building, the institutional framework supporting the development of the activity is complex due to co-existence of competences between the national and the regional ports. As for education and training, the ports plans aim at improving human resources with better training. This is basically addressed at ports level. Education and training offer is required especially for administrators of recreational ports and facilities. In relation to officers and crews it is reported that there is little interest amongst youngsters for sea careers and that generational relief is limited. Promotional actions are required to inform the public about the possibilities of the sea careers. The archipelago offers education and training which seems underutilised. Cape Verde may have needs of training which can be supported by the Canary Islands. Access to finance for the achievement of the objectives of maritime transport and ports is co-financed by ERDF. As it is the case with other marine and maritime activities data is collected but is offered aggregated with other transport sectors. So assessment of the impact of the activity has to be based on rough estimations. In relation to cooperation with neighbours, Cape Verde has needs in the realms of maritime transport and ports due to the growth of tourism and other economic activities. The program MAC is instrumental in cooperation with that country. Cooperation with the other archipelagos is place in relation to further developing the cruise activity. Figure 17 — Logical diagram for shipbuilding and repair

There is not a sectorial regional strategy for the naval sector in the Canary Islands. The Maritime Cluster of the Canary Islands highlights the EU LeaderSHIP strategy. This strategy addresses the need to conduct research and development in the exploration of new market opportunities such as marine renewable energies. Although that is a strategy for all Member States it has particular interest for the archipelago being in line with the envisaged opportunities for the naval sector as a provider of services for marine renewable energies. LeaderSHIP also addresses the need to increase employment and the need for education and training. This is in fact one of the main needs in this sector and is particularly relevant regarding services to the offshore sector e.g. oil platform repair and maintenance. It is worth recalling that the private sector in collaboration with local governments is offering training to satisfy the new needs of the naval sector. The creation of technical degrees addressing those needs may take a time since the competences in education are in hands of the education government branch. Regarding capacity building the sector relies heavily on the role of the federations of

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

metal entrepreneurs and clusters besides. These actors are playing a key role in the development of the activity. The RIS3 in turn states the need for the archipelago to become a nodal centre for the mid-Atlantic in relation to technological support to marine and maritime sectors. No specific mention to infrastructures is provided in the RIS3. Nevertheless, the RIS3’s aim to transform the archipelago into a nodal center for technological support is consistent with the needs of improving port capacity for offshore services and recreational fit and repair. Access to finance is a key issue for the entire naval sector in the EU and in the particular case of the Canary Islands access to finance for R&D and innovation is particularly relevant due to the potential offered by new market niches such as renewable energies and underwater observation of the marine system, amongst others. It is worth mentioning that the naval sector is financially assisted by the Ministry of Industry. However, new developments may require more financial needs and thorough use of EIB support. Data on employment in the shipbuilding activity is available to the public from ISTAC. Socioeconomic data for the ship repair activity is provided aggregated with other sectors under the broad category repair and maintenance of machinery and equipment. Socioeconomic data for shipbuilding and repair are collected by the INE in the annual industry survey but only available upon payment. This data is available only until 2013 due to privacy restrictions. This data is essential to understand the weight of the sector and should be available upon provision of proper justification of the need to access it. Given the growth of nautical activities in the entire sea basin activities such as fit and repair of boats and other marine artefacts would likely increase. These provide opportunities for the region and the entire sea basin at least in the field of R&D and technical cooperation with the Portuguese ORs or assistance to Cape Verde should take place. Figure 18 — Logical diagram for coastal and cruise tourism

In terms of infrastructures, the Promotional Plan of Tourism aims at increasing the number of visits and stay length. The growth of tourism requires improvement of energy saving and efficiency in infrastructures, especially in oldest tourism sites where infrastructures are in many cases outdated. In the same manner growth of tourism will increase water needs. This will require enlargement of the desalination capacity in islands where no natural water is available or where underground water is becoming scarce. The RIS3 is in line with the Promotional Plan and complement the need to increase the number of tourists by transforming the sector into a competitive sector with leadership in the EU. For this the identified needs of energy saving and efficiency and provision of water have to be addressed. The RIS3 also highlights the importance of R&D in energy efficiency and provision of quality water. Diversification of the tourism offer

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

requires also improving R&D in market research for the identification and development of new products and market niches. In relation to capacity building the institutional set up provided by the regional government and the private sector, trough associations and clusters, provide a strong framework for the development of the activity. The RIS3 duly addresses those needs. In relation to education and training both plans do not outline detailed actions to address those needs but recognize them as necessary to make the destination competitive and diversified. Further cooperation amongst regional and national instances is required to provide an educational and training offer for low and mid-level personnel. Education and training offer for personnel linked to the nautical sector, e.g. marinas administrator, and for activities linked to natural tourism, e.g. nature sightseeing guides, are especially needed. Access to finance is difficult due to the high indebtedness of the sector. Public finance is available for innovative projects aimed at energy saving and efficiency. These financial instruments are provided by SODECAN. Regarding data collection, data on socioeconomic variables is not available for coastal and cruise tourism. Cooperation with neighbors on nautical activities and other aspects related to tourism are carried out in the framework of the program MAC. Initiatives conducted to transfer knowledge to Cape Verde in nautical activities are especially notable. Figure 19 — Logical diagram for blue biotechnology (pre-development stage)

The Canary Islands government is conscious of the potential of the blue biotechnology activity and aims at transforming the region into a world referent in R&D, especially in the field of biotechnology based on microalgae. Efforts are being conducted to establish the basis for this activity and the Algae Biotechnological Platform (PEBA) has been recently launched to conduct R&D in this field. This initiative is aligned with the RIS3. It is also worth noting that the Spanish Bank of Algae (BEA) is conducting research in algae identification, cataloguing and storing. It is worth recalling that currently there is an activity of microalgae production (see chapter on aquaculture in the OR annex). The potential to add value to the microalgae production trough extraction of bioactive compound to respond to a growing demand for a large variety of uses faces the constraint of large investments in equipment. Access to finance is constrained being private investments neither supported by specific financial instruments nor by public funding. Regarding education and training, efforts needs for highly specialised researchers, engineers and technicians are envisaged in the RIS3. The PEBA will contribute to training of researchers. In relation to cooperation with neighbours the MAC program is a key driver to promote R&D and training of researchers of the Macaronesia basin and western Africa.

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

Figure 20 — Logical diagram for marine renewable energy (pre-development stage)

The blue energy sector is still in a pre-development stage. Stakeholders interviewed manifest that the production of electricity at commercial level may take some few years more to start. Thus infrastructures to produce electricity at commercial level are not yet in place. However, larges investments are being made in building the infrastructure to support R&D in this area. The RIS3 pays particular attention to this and the PLOCAN is already in place to conduct R&D in this and other fields of research. It is also worth commenting that national electricity operators are particularly interested in the region and are building pilot infrastructures for the production of wind energy. Modalities of marine energy which high potential are wind energy and wave energy. R&D in these fields is being conducted by PLOCAN and ITC. The RIS3 highlight the need to highly qualified researchers and technicians. This activity is likely to provide jobs for highly qualified professionals at both university and technical level. Postgraduate studies for engineers are likely to be needed. Marine renewable energies are of particular relevance for the EU and, especially for the outermost regions. The OceanERANET program addressed R&D needs and aims at demonstrating the validity of technological developments. The Canary Islands R&D system and academia are active in presenting projects within this program. Regarding access to finance, there are neither private instruments nor public funds for the development of the commercial production of marine energy. Only R&D is being funded by EU funds and national and regional funds. SODECAN offer a financial line for renewable energy projects but is devoted to ongoing sectors (inland energy). In the framework of the program MAC, cooperation with neighbors is being carried out in the wide field of renewable energies. Cooperation with Cape Verde is particular relevant due to the increasing needs of energy in that region due to the growth of tourism.

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

12 OR potential contribution to BG and IMP initiatives 12.1 Fisheries Figure 21 — Logical diagram between maritime activities and Blue Growth objectives

Maritime activties Objectives/focus areas of the initiatives

Blue energy

Aquaculture Blue Growth Maritime, coastal and cruise tourism

Marine mineral resources

Blue biotechnology

helping private industry compete in the global economy

improving the quality of public decision- Marine Knowledge making

strengthening marine scientific research

increasing competition and innovation amongst users of marine data

reducing uncertainty in knowledge of the oceans and the seas

Fishery and aquaculture Reduce conflicts between sectors Maritime Spatial planning

Encourage investment Desalination of seawater Increase coordination between Maritime transport and ports administrations

Increase cross-border cooperation Ship building andrepair Protect the environment

Coastal tourism and cruise tourism

surveillance

Integrated Integrated Maritime Maritime providing authorities with ways to exchange information and data

External action for stability and inclusive

development M Awareness, surveillance & information aritime Security Strategy sharing for enhanced decision-making

Capability development, pooling and sharing capacity in the EU

Risk management, protection of critical infrastructures and crisis response

Research, innovation, education and training

The Canary Islands’ fishery sector is strongly connected with Blue Growth activities such as aquaculture and tourism. Regarding aquaculture, it is worth recalling that the particular configuration of the archipelago’s coast (with very limited continental shelf) restrict the space available for coastal aquaculture. Thus, there is competition for space. In addition, fishermen consider that aquaculture can cause severe ecological problems such as impact of fish escapes from cages. In the other hand, there are positive interactions such as the provision of services to aquaculture such as cages repair, ice, amongst others. In relation to coastal tourism, the fishing activity plays a key role as a provider of products to satisfy the growing demand of food services. New modalities of tourism have emerged during the last years and the use of the marine and coastal space, as a source of cultural and nature experiences, is providing opportunities for diversification of the fishing activity such as pesca-tourism, observation of whales, etc. Aquaculture in turn has strong connections with biotechnology. Microalgae production has emerged as an activity with great future as the basis for a biotechnology industry. Currently, its products are exported and value is mostly added by importers. Further projects should take into account the need to evaluate the impact of the introduction of new species of aquaculture in the marine environment. Environmental concerns have refrained diversification of aquaculture such as, for example, in the case of corvina, a species with a proved technical viability. Further studies are required to evaluate environmental impacts. Collaboration of the fishing sector in counteracting the escapes from cages should also be taken into consideration.

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

Regarding marine knowledge, the fisheries and aquaculture sector does not directly participate in projects to enhance its competitiveness in the global market. However, the R&D apparatus of the Canary Islands participates actively in projects funded by the EU at European and Macaronesia level. These projects are related to a better knowledge of the resources, which could sustain a future fishing activity, improvement of the quality of fisheries and aquaculture products, amongst others. As for Maritime Spatial Planning (MSP), the fisheries and aquaculture sector participates in initiatives at the level of the diverse islands and promoted by the insular governments (cabildos) which are aimed at conciliating the diverse interest of the concerned users of the coastal space and reducing conflicts. Provided that fishing possibilities for Spain are managed by the national government the regional branch of fisheries and the diverse fisheries actors, under the umbrella of the regional federation of cofradías and other associations, coordinate actions to ensure sustainable exploitation of the resources. Cross border cooperation is an asset in the region and is carried out on the framework of the AC of the South Western Waters. Coordination is being conducted with the sectors of Azores and Madeira with a view to the implementation of the new AC of the Macaronesia region. Protection of the environment is also high in the agenda and initiatives are being conducted by the regional federation of cofradías to impose self-regulation of traps. In relation to Integrated Maritime Security the fishing sector’s infrastructures and expertise are good assets to contribute to maritime security and surveillance activities. In relation to the Maritime Security Strategy the fishing sector is well placed to contribute to risk management and crisis potential actions. The fleet could protect the environment health trough location and disposal of marine litter or oil recovery in the case of wrecks (49). Potential projects for Blue Growth and IMP could include, amongst others, identification of diversification opportunities for aquaculture production; Evaluation of the environmental impact of new species in the aquaculture sector; Establishment of a guichet unique to simplify and speed up the process of granting of aquaculture concessions; Adding value to the aquaculture (and fisheries production) trough processing and identification of new markets; Promotion of a stakeholder’s participatory platform for marine and maritime issues involving all concerned parties, including the artisanal fishing sector which is currently not part of the maritime cluster; and Strengthening of the role of the fishing fleet in maritime surveillance in order to protect the environment and respond to emergencies such as in the case of oil spills.

49 In a different context, fishing fleets have demonstrated its ability to counteract oil spills such as in the case of the Prestige disaster, where the Galicia and Basque fishing fleets played a key role in oil recovery.

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

12.2 Desalination of seawater Figure 22 — Logical diagram between maritime activities and desalination of seawater objectives

Maritime activties Objectives/focus areas of the initiatives

Blue energy

Aquaculture Blue Growth Maritime, coastal and cruise tourism

Marine mineral resources

Blue biotechnology

helping private industry compete in the global economy

improving the quality of public decision- Marine Marine Knowledge making

strengthening marine scientific research

Fishery and aquaculture increasing competition and innovation amongst users of marine data Desalination of seawater reducing uncertainty in knowledge of the oceans and the seas Maritime transport and ports

Ship building and repair Reduce conflicts between sectors Maritime Spatial planning Encourage investment Coastal tourism and cruise tourism Increase coordination between administrations

Increase cross-border cooperation

Protect the environment

surveillance

Integrated Integrated Maritime Maritime providing authorities with ways to exchange information and data

External action for stability and inclusive

development M Awareness, surveillance & information aritime Security Strategy sharing for enhanced decision-making

Capability development, pooling and sharing capacity in the EU

Risk management, protection of critical infrastructures and crisis response

Research, innovation, education and training In relation to Blue Growth, the activity of desalination of seawater is highly dependent on fossil energy a fact that hampers its competitiveness due to the high costs of this form of energy. Clean energies such as wind and blue energy are alternatives to counteract this problem. In fact, some desalination plants are being powered by wind energies (self-consumption). Blue energy is still in R&D phase and may take a time to be produced at commercial level. Aquaculture has strong relation with desalination, especially in the case of production of microalgae. The only producer of microalgae in the archipelago utilizes effluents of the desalination plant, with high salt concentration, in its production process. In turn this reduces the environmental impact of the desalination plant. Regarding marine knowledge, the desalination activity has improved the knowledge on how to process seawater for urban and rural use and have developed know-how and technologies that are being transferred to other regions in the world with water needs. In relation to MSP there is a need to analysis administrative competences and location. Untreated effluents may increase salt concentration in water being processed by other desalination plants or to have a general environmental impact, affecting other activities such as marine aquaculture. Cooperation with neighbours in the Macaronesia, especially Cape Verde, other countries in Africa and in general with other developing regions is being conducted. The MAC program is playing a key role in cooperation with Cape Verde. This cooperation should be continued due to the increasing needs of water in that country due to population tourism growth. Potential projects for Blue Growth and IMP could include, amongst others, fostering research in the use of renewable energies, including blue energies, in the production process of desalination of seawater; Exploring additional synergies between microalgae production and desalination effluents; Enlargement of desalination capacity for the needs of the coastal tourism

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

activity; Fostering research on quality improvement of water; and Enhancement of cooperation with developing nations for the transfer technical knowledge.

12.3 Maritime transport and ports Figure 23 — Logical diagram between maritime activities and maritime transport and ports objectives

Maritime activties Objectives/focus areas of the initiatives

Blue energy

Aquaculture Blue Growth Maritime, coastal and cruise tourism

Marine mineral resources

Blue biotechnology

helping private industry compete in the global economy

improving the quality of public decision- Marine Knowledge making

strengthening marine scientific research

Ship building and repair Reduce conflicts between sectors Maritime Spatial planning Encourage investment Coastal tourism and cruise tourism Increase coordination between administrations

Increase cross-border cooperation

Protect the environment

surveillance

Integrated Integrated Maritime Maritime providing authorities with ways to exchange information and data

External action for stability and inclusive

development M Awareness, surveillance & information aritime Security Strategy sharing for enhanced decision-making

Capability development, pooling and sharing capacity in the EU

Risk management, protection of critical infrastructures and crisis response

Research, innovation, education and training

The maritime transport and ports sectors have strong connections with Blue Growth activities in particular with maritime, coastal and cruise tourism. Maritime transport and, in particular, interisland connections are of key relevance for the regional economy in terms of transport of goods and passengers, for both residents and tourists. The port sector has also strong implications in relation to the provision of port services for the cruise and nautical activities, where the archipelago has remarkable opportunities. Ports are also particularly relevant for activities such as fishery although it is not considered a Blue Growth activity. The two largest ports offer cold storing facilities for the catches carried out by the industrial fleet in third waters. The largest ports also offer a platform for development of state of the art infrastructures and devises such as the PLOCAN and, in general, the technological fabric around ship repair and construction would play a relevant role in strengthening marine research in the region and in the mid-Atlantic, contributing to positioning the Canary Islands as a technological reference and lab for new marine technologies. MSP is essential to the development of the transport and ports activities. Cross border cooperation with neighbours is essential to establish new routes, especially in relation to

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

cruises and nautical activities. At the level of the archipelago many marine and maritime activities rely on the port system and, taking into account, that port space is scarce a careful planning should be conducted in order to reduce conflicts and ensure competitiveness and thus attract investments (50). In relation to Integrated Maritime Surveillance the sector and also the fishing activity can contribute to maritime security and surveillance. Its role is particularly relevant due to their infrastructures and expertise. As an example, the Port of Las Palmas has provided a key role in the coordination of activities to face wrecks and oil spills (51). In the same manner, these sectors can contribute to the Maritime Security Strategy in relation to risk management, protection of critical infrastructures and crisis response and surveillance and information sharing. The sectors are also in good position to respond to external actions and inclusive development with less developed regions in the sea basin (i.e. Cape Verde and countries in the Gulf of Guinea). Potential projects for Blue Growth and IMP could include improve connectivity in non- capital islands; Foster the potential of the archipelago as a logistic hub for transport and humanitarian aid; Foster the role of the archipelago ports as centres for the provision of technological services; Enhance the contribution of the archipelago in maritime surveillance and security due to its strategic position and level of infrastructures and expertise.

(50) In addition, it is worth mentioning the special fiscal facilities are provided for enterprises to establish their business in the main ports. (51) http://www.lne.es/espana/2015/04/18/siguen-tareas-vigilancia-mancha-gran/1743289.html

Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

12.4 Shipbuilding and repair Figure 24 — Logical diagram between maritime activities and shipbuilding and repair objectives

Maritime activties Objectives/focus areas of the initiatives

Blue energy

Aquaculture Blue Growth Maritime, coastal and cruise tourism

Marine mineral resources

Blue biotechnology

helping private industry compete in the global economy

improving the quality of public decision- Marine Marine Knowledge making

strengthening marine scientific research

Ship building and repair Reduce conflicts between sectors Maritime Spatial planning Encourage investment Coastal tourism and cruise tourism Increase coordination between administrations

Increase cross-border cooperation

Protect the environment

surveillance

Integrated Integrated Maritime Maritime providing authorities with ways to exchange information and data

External action for stability and inclusive

development M Awareness, surveillance & information aritime Security Strategy sharing for enhanced decision-making

Capability development, pooling and sharing capacity in the EU

Risk management, protection of critical infrastructures and crisis response

Research, innovation, education and training

This activity has the potential to contribute to Blue Growth activates such as blue energies. As it has been pointed out previously in this annex blue energies are still in R&D phase and constitute promising activities in the archipelago as an alternative to fossil energies. The shipbuilding and repair activity can play a role in the development of the infrastructure for blue energies. The sector has collaborated in the development of tidal energy prototype devices. In general, knowledge of the naval sector in repair and maintenance of machinery and equipment and construction of metal structures provides strength for the development of blue energies. The sector has also strong synergies with the tourism activity, in particular with the growing nautical activities. The sector provides fit and repair services for recreational boats and has potential to develop the activity of building of recreational craft. R&D in nautical and naval engineering is advanced in the archipelago and contributes to marine knowledge trough development of devices for underwater observation of the marine system and pilot devices for production of marine energies. The activity is well placed to contribute to the Maritime Security Strategy trough maintenance and repair of critical infrastructure such as the oil platforms and, in general, trough provision of services to the offshore sector. Private initiatives of the metal sector of the Canary Islands are contributing to technical capacity in the archipelago to create new skills for the development of these activities in the region.

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Potential projects for Blue Growth and IMP could include, amongst others, improvement of the technical capacity for the development of marine energies and devices for marine systems observation; Provision of education and training to respond to the increasing needs of the offshore and nautical sectors.

12.5 Coastal and cruise tourism Figure 25 — Logical diagram between maritime activities and coastal and cruise tourism objectives

Maritime activties Objectives/focus areas of the initiatives

Blue energy

Aquaculture Blue Growth Maritime, coastal and cruise tourism

Marine mineral resources

Blue biotechnology

helping private industry compete in the global economy

improving the quality of public decision- Marine Knowledge making

strengthening marine scientific research

Ship building and repair Reduce conflicts between sectors Maritime Spatial planning Encourage investment Coastal and maritime tourism Increase coordination between administrations

Increase cross-border cooperation

Protect the environment

surveillance

Integrated Integrated Maritime Maritime providing authorities with ways to exchange information and data

External action for stability and inclusive

development M Awareness, surveillance & information aritime Security Strategy sharing for enhanced decision-making

Capability development, pooling and sharing capacity in the EU

Risk management, protection of critical infrastructures and crisis response

Research, innovation, education and training

Coastal and cruise tourism is one of the pillars of blue growth and has strong relations with the other blue activities. The Canary Islands’ touristic sector has a strong dependency on fossil energy, either directly through electricity needs or indirectly through consumption of desalinated seawater. Thus alternatives sources of clean energy, including blue energy, might arise as a solution for this issue. Aquaculture and fishery in general have also narrow links with tourism. The growth of tourism requires a growing offer of food, being fish especially relevant due to its appeal for visitors of the archipelago. Other forms of tourism have emerged such as pesca-tourism, where the activity of fishing and aquaculture could be a subject of interest for tourists. The natural and cultural attractions of the littoral provide opportunities for stretching bonds between the touristic and the fishery sector. Regarding marine knowledge, scientific and empirical knowledge of marine biodiversity provide an opportunity for the archipelago to become competitive as a destination for nature sightseeing such as, for example, whale and birds sightseeing, diving, etc. Marine knowledge also contributes to the identification of new routes for cruises at the level of the Macaronesia sea basin. Due to the growth of coastal tourism MSP is required to conciliate activities in the littoral. Nautical activities and recreational fishing may collide with commercial fisheries and

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aquaculture. Moreover, nautical activities require marinas or ad hoc facilities at large ports, which cannot always be enlarged. Initiatives such as Ciudad del Mar in Las Palmas, for example, promote a more rational use of the littoral space of Las Palmas in order to diminish conflicts. In addition, the role of insular cabildos is of key importance to help users of the coast to conciliate aims trough the implementation of stakeholders’ roundtables. Coordination between administrations is also required due to the diverse competences involved in the use of the marine and maritime space, straddling regional and national governments and diverse sectorial administrative instances. This is especially relevant when dealing with protection of the marine environment. Cross border cooperation is in place and the Canary Islands is active in cooperation at the level of the sea basin trough initiatives led by the private sector, especially in the field of nautical activities such as the Maritime Cluster of the Macaronesia, and academic sector such as Plataforma Tecnológica de Macaronesia (52). In relation to the cruise sector the Association cruises in the Atlantic Islands is playing a key role in strengthening cooperation amongst the Macaronesia archipelagos in order to develop new routes in the sea basin. Potential projects for Blue Growth and IMP could include, amongst others, improvement of accommodation infrastructure for energy saving and efficiency; development of human skills to address the new needs of the cultural and nature tourism; continue with the joint efforts conducted at the Macaronesia sea basin related to diversification of the offer of cruise routes.

12.6 Blue biotechnology (pre-development stage) Figure 26 — Logical diagram between maritime activities and blue biotechnology (pre- development stage) objectives

(52) A MAC project led by the Universidad de La Laguna.

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Blue biotechnology is not yet a commercial activity although advanced R&D is being carried out by ITC, PEBA and BEA. This activity is narrowly linked to aquaculture. In fact, microalgae production is considered as the basis for blue biotechnology in the region. The advanced level of R&D in the archipelago, its R&D infrastructure, and natural conditions may transform the region in an international leader in blue biotechnology. This field of research will contribute to marine knowledge by strengthening scientific research trough cooperation with other countries in the sea basin and beyond, while helping the private sector to put its initiatives in action and compete in the growing international markets, where blue biotech products are needed for a large array of industries. The activity has also the potential to contribute to cross-border cooperation, especially in the field of R&D, where initiatives are being conducted in the framework of EU funded programs.

12.7 Marine renewable energy (pre-development stage) Figure 27 — Logical diagram between maritime activities and marine renewable energy (pre-development stage) objectives

Blue energies are not yet produced at commercial level although advanced R&D is being carried out by PLOCAN and ITC. Considering that energy supply is one of the key problems in the archipelago this activity has a great potential as a source of clean energy for many sectors. But it is especially relevant for the growing coastal tourism. The advanced level of R&D in the archipelago, its R&D infrastructure, and natural conditions may transform the region in a natural laboratory for the development and testing of marine energy technologies. This field of research will contribute to marine knowledge by strengthening scientific research trough cooperation with other countries in the sea basin and beyond, while helping the private sector to put its initiatives in action. The

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relation of this sector to MSP is especially related to the need to increase coordination between administrations. In fact, the competences on this activity have to be defined between the national and regional government. The activity has also the potential to contribute to cross-border cooperation, especially in the field of R&D, where initiatives are being conducted in the framework of EU funded programs. It is also worth commenting that, due to the particular configuration of the coast, efforts shall be conducted to carry out MSP given the multiple uses of the marine space. This future sector would also have a positive impact on the environment, considering that currently the region is highly dependent on fossil energies.

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13 Conclusions on concrete measures by type and timeframe By analysing the Logical diagrams above, and considering all findings reported in the previous sections of the report, the following ‘legislative’, ‘non-legislative’ and ‘financial’ conclusions emerged. For each of them, the following details are provided:  Possible time frame for fulfilling the potential (short/medium term or long term);  Stakeholders that should activate the measure  Possible best practices experimented in other territories (i.e. cross-fertilisation possibilities);  Measures for achieving/implementing them.

 Fisheries Stakeholders that should Possible best practice/flagship Conclusion Time frame Measures for achieving them

activate the measure project

Barriers to access to fishing grounds in third countries waters have been The project MACAPEL provides key factors for the decline of the an example of initiatives led fishing activity. It is expected that National authorities by the private sector in Agreements are being renegotiation of access agreements to Medium term Regional authorities promoting cooperation with renegotiated e.g. partnership third countries waters may allow Private sector third countries (i.e. agreement with Mauritania. recovering former production levels.

Mauritania), while proposing Revision and renegotiation of renegotiation of agreements. access agreements to third country waters are required. Revision of the allocation of fishing possibilities keys As discussed in the gap analysis, LEGISLATIVE requires ad hoc technical fishing possibilities for key resources studies to back up decision i.e. the bluefin tuna are deemed as Private stakeholders making. These studies shall scarce. Sound studies are needed Medium term Not available Regional authorities address socioeconomic and to assess the viability of sustainability criteria to increasing the quota shares for allocate resources to the this species. regions, consistently with

Article 17 of the CFP.

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Stakeholders that should Possible best practice/flagship Conclusion Time frame Measures for achieving them

activate the measure project

As identified in this study, the fleet in the Canary Islands is aged (35 years old in average) and mostly comprises small-scale fishing vessels. Since the fleet renewal is not encompassed by the CFP, a public-private consultation should be launched for identifying  Technical studies possible actions and sources of funds, evaluating the state of the others than the EMFF, for renewing art of the fishing fleet in the small-scale fleet. Possible actions European Union terms of technical and to be undertaken are: National authorities economic characteristics,  Inventorying of the fleet currently Medium term Not available. Regional authorities to identify the type of needing renewal, to ‘quantify’ the Professional organisations investment needed. type of investment needed  Launch of the consultation  Launch of the consultation for with the parties exploring possible synergies for concerned. funding/sustaining the renewal. The consultation is a short/medium- term action and should be activated by the regional administration, envisaging the involvement of the EU and the national administration, as well as all related stakeholders. Regulation of the pesca-tourism activity is pending approval. The initiative has already been National authorities Effective implementation is Short term launched by the national In progress. Regional authorities required to deter the emergence government. of informal operators.  Studies to characterise  IUU fishing and growth require and quantification of the effective control mechanisms. impact of recreational  Recreational fishing is rapidly Control measures to combat fishing should be growing and is becoming a National authorities IUU fishing are being Short term conducted. challenge for control. Regional authorities improved, including aerial  Effective measures to  IUU activities and recreational vigilance. regulate recreational fishing should be effectively fishing should be controlled. implemented.

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Stakeholders that should Possible best practice/flagship Conclusion Time frame Measures for achieving them

activate the measure project

The fishing fleet requires Technical studies evaluating improvement of on board the technical viability of the conservation and security facilities Private stakeholders Medium term Not available fleet and establishing and requires improvement of Regional authorities priorities for vessels conservation and security modernisation. facilities. Information campaigns and promotion of the fishing As observed in other careers linked to career amongst youngsters. the sea, the regional fishing fleet Cofradías, Producer Private stakeholders faces low generational relief of Medium to long Organisations and technical Regional authorities Not available crews, a fact that affects the future term education centres (FP) should National authorities of the activity. This is an issue that take the lead in promoting may require immediate attention. this career, and other modalities of fishing such as pesca-tourism.

 Studies on resource LEGISLATIVE

- abundance  Studies on technological

NON characteristics of the fleet Exploitation of deep-sea resources and analysis of viability of offers alternatives to traditional new technologies to fishing resources, but this should be harvest deep water based on sound assessment of Private stakeholders species. resource abundance. requiring Medium term Not available Regional authorities  Identification of market technological improvement in niches at gear technologies and market regional/national and research to identify market niches at international level regional and international level.  Commercialization of these species, especially to satisfy local demands for fresh fish.

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Stakeholders that should Possible best practice/flagship Conclusion Time frame Measures for achieving them

activate the measure project

Collection of data for scientific seems to need reinforcing due to the large amount of harbours and landings sites. This seems to be a lack of personnel to collect the fisheries data.  Experts evaluation of the There is also a gap in the collection of data collection process to data of the very large recreational identify critical points and National authorities fleet. IUU fishing activities are Short to medium gaps in skills, equipment Regional authorities Not available eroding the accuracy of the data term and infrastructure and to RFMOs (ICCAT, CECAF) collecting process. In general, establish priorities to problems with data collection may overcome the main undermine the process of sound stock problems of the system. assessment. This affects effective fisheries management. A program should be carry out to reinforce the data collection system.  Revision of the administrative apparatus Growth and diversification of the and overlapping of aquaculture activity faces long competences amongst administrative procedures for administrations. obtaining aquaculture concessions, Medium term Regional authorities Not available  Implementation of a one- which discourage investment. stop administrative Administrative processes need to window to process be shortened. concessions requests and other administrative requirements.  Studies identifying market niches for traditional fish As identified in previous sections, the preparations in regional processing sector has decayed due to and international the end of key access agreements. markets. Besides this strong regional  Studies identifying Private stakeholders preference for fresh fish and Medium term Not available technical viability and Regional authorities availability of foreign products market possibilities of constrain its development. Means new products based on should be deployed to re-launch deep sea species. this activity.  R&D in the area of fish processing should be developed.

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Stakeholders that should Possible best practice/flagship Conclusion Time frame Measures for achieving them

activate the measure project

No financial conclusions identified FINANCIAL

 Desalination of seawater

Stakeholders that should Possible best practice/flagship Conclusion Time frame Measures for achieving them

activate the measure project

Private initiatives to power plants with wind energy (self-consumption) are facing newly introduced taxes. Fiscal facilities for wider This is perceived as a barrier for the Regional authorities Medium term NA utilisation of self- development of this alternative to National authorities consumption. fossil energies. Fiscal facilities

LEGISLATIVE seem necessary to encourage self-consumption.  Growth of the installed capacity.

The growth of tourism and population  Creation of postgraduate Private stakeholders requires new infrastructures and Medium term NA courses for engineers on Regional authorities highly trained personnel. desalination technologies (there were some in the past).

Some desalination plants are LEGISLATIVE

- Further R&D and innovation High dependency on fossil being powered by their own on powering of energies requires alternative Medium / long Regional authorities wind mills. But there are still

NON desalination plants with sources of energy e.g. inland wind term R&D and innovation system technical problems linked to renewable energies. Research farms. wider use of this form of is being conducted by ITC. energy.

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Stakeholders that should Possible best practice/flagship Conclusion Time frame Measures for achieving them

activate the measure project

Local engineers have Improvement of the quality of the introduced innovation to Regional authorities R&D and innovation is water desalinated is still required Medium term improve the quality of water. R&D and innovation system being conducted by ITC. e.g. presence of boron. But there is still room for

improvement.

No financial conclusions identified FINANCIAL

 Maritime transport and ports Stakeholders that should Possible best Measures for achieving Conclusion Time frame

activate the measure practice/flagship project them

No legislative conclusion has been identified LEGISLATIVE Sea careers, and especially those

Information and requiring working at sea, have lost promotional campaigns are appeal and face poor generational required to inform youngsters - relief. This is particularly notable Regional authorities Medium to long about the perspectives of the provided that the region has Port authorities NA term blue careers, with special NON educational infrastructure to educate Private stakeholders regards to the opportunities new generations of sea workers. Sea offered for the offshore LEGISLATIVE careers require further activity. promotion.

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Stakeholders that should Possible best Measures for achieving Conclusion Time frame

activate the measure practice/flagship project them

Some interisland routes, especially those involving islands with less population density, have fewer Analysis of the needs of frequencies and face high prices. Regional authorities the new regional Growth of tourism and emergence Medium term Port authorities NA destinations in order to of new tourism alternatives Private stakeholders provide solutions to the lack require improvement of ferry of services. frequencies, even outside the peak seasons. A steady offer of specialization courses The potential of the archipelago to could be offered by the become the logistic hub in the mid- Regional authorities schools in collaboration with Atlantic will require highly Medium term Port authorities NA ports authorities and specialised personnel in shipping Private stakeholders chambers of commerce. and logistics. Some experiences have been conducted in the past on these matters. Port facilities to satisfy the new Reorganisation of port needs of the nautical activities Regional authorities space and improvement of seems required, especially in Medium term Port authorities NA facilities are being conducted related to large recreational boats Private stakeholders to satisfy the local and

and yachts. international demand.

No financial conclusions identified FINANCIAL

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 Shipbuilding and repair Stakeholders that should Possible best Measures for achieving Conclusion Time frame

activate the measure practice/flagship project them

No legislative measures identified. LEGISLATIVE The private sector represented by the federations of metal Besides the available training Services to the offshore sector entrepreneurs has conducted offer, technical mid-level (including repair of the Gulf of relevant actions to develop National authorities careers on repair and Guinea’s oil platforms) present good skills, addressing the needs of Medium term Regional authorities maintenance of ship and perspectives but require continued the offshore sector. Medium Private stakeholders other seagoing craft seem efforts for improvement of level technical degree could be required to back up the

technical and language skills. necessary to address new development of the sector. needs. This is a potential technical career. Technical mid/low level courses and careers on Fit & repair of recreational boats Initiatives have been repair and maintenance of presents good perspectives but National authorities

LEGISLATIVE conducted by the city recreational boats and other - require continued efforts for Medium term Regional authorities government of Las Palmas marine recreational craft, improvement of technical skills Private stakeholders (fibre glass training). especially on the use of

NON e.g. synthetic materials. synthetic materials, should be created. Recovery of the fishing activity may Renegotiation of fishing also increase the demand of services EU authorities Renegotiation of access agreements may revitalise the to the ship repair sector. National authorities agreements is being Medium term fishing activity and increase Renegotiation of access Regional authorities conducted at high level of the demand of naval services agreements should be Private stakeholders decision-making. i.e. MACAPEL project.

continued/conducted.

No specific instruments are provided Evaluation of EIB financial for the development of private Regional government opportunities in the Medium term NA initiatives. Financial mechanisms Private stakeholders framework of the LeaderSHIP

should be identified. program. FINANCIAL

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 Coastal and cruise tourism Stakeholders that should Possible best practice/flagship Conclusion Time frame Measures for achieving them

activate the measure project

New tourism activities, which encompass a more comprehensive The pesca-tourism regulation utilisation of the marine space and National authorities is pending approval. This will Medium term Ongoing. appreciation of its natural resources, Regional authorities provide a framework to avoid e.g. whale and birds watching, etc., informal operators.

LEGISLATIVE require regulatory frameworks. Qualification is required to satisfy the new needs of the touristic activity. This is required for mid and low-level Many tourism schools and personnel for food and drinks university degrees offer activities. In the case of emerging specialisation of tourism. New touristic activities, new needs, however, will require qualifications are required for complementary training tourist guides and operators in Regional authorities Medium term NA and certification for tourist the field of observation of marine Private stakeholders activities linked to the marine

life and environment. The growth environment in order to of the nautical sector requires develop competitiveness and marina administrators. Promotion deter the emergence of of cultural activities in coastal informal operators. communities requires qualified

personnel. LEGISLATIVE

- Technical and economic

NON The growth of nautical activities viability of new projects to requires port improvements, Regional authorities Medium term NA enlarge/modify existence building of marinas and Private stakeholders infrastructure or to create reorganization of the port space. new infrastructure. Improvement of city infrastructures, services, personnel with language abilities Regional authorities Medium term NA and touristic packages are Private stakeholders required for cruisers doing a stop

in the islands.

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Stakeholders that should Possible best practice/flagship Conclusion Time frame Measures for achieving them

activate the measure project

The Association cruises in the Seasonality in coastal tourism and Atlantic Islands is a private cruise activities needs to be Regional authorities initiative aimed at creating Medium term Ongoing. counteracted by new touristic Private stakeholders new routes in the Macaronesia products. and counteracting the problem of seasonality. The touristic sector in general faces obsolescence of infrastructures; high Ongoing expansion of the water requirements and needs for desalination capacity is energy efficiency are evident. being carried out. R&D in Desalination of seawater has been of Regional authorities Medium/long term NA blue renewable energies key importance for the growth of the Private stakeholders should be conducted to put sector and will continue being. them into commercial Renewable energies, among them operation. blue energies, arise as an alternative

to high dependency on fossil energy.

No financial conclusions identified. FINANCIAL

 Blue biotechnology (pre-development stage)

Stakeholders that should Possible best practice/flagship Conclusion Time frame Measures for achieving them

activate the measure project

No legislative measures identified. LEGISLATIVE

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Stakeholders that should Possible best practice/flagship Conclusion Time frame Measures for achieving them

activate the measure project

Blue biotechnology based on microalgae production has a great The national and regional Investments are being potential due to the increasing global Regional authorities government have invested in conducted by the regional demand of bioactive compounds. Medium term Private stakeholders R&D infrastructures i.e. PEBA, government to respond to Investments in R&D need to be BEA. these needs. maintained.

There is a potential to produce blue biotechnological products that might

enter into competitive international Investments have been LEGISLATIVE - markets e.g. pharmacy, food, conducted in microalgae Identification of cosmetics, and other industrial uses. Regional authorities production and thanks to the investments needs have to

NON Medium term Development of the productive Private stakeholders former EFF. This has provided be conducted and priorities infrastructure is required to add the basis for a future blue established. value to the microalgae biotech activity. production e.g. extraction of bioactive compounds.

SODECAN has created Identification of financial Investment in equipment for financial instruments based on sources and mechanisms commercial production is not subject Regional authorities ERDF for other innovative Medium term for carrying out these to EMFF aid and requires other Private stakeholders activities. This may serve as a investments should be carried forms of finance. model for biotechnological

FINANCIAL out. activity in general.

 Marine renewable energies (pre-development stage)

Stakeholders that should Possible best practice/flagship Conclusion Time frame Measures for achieving them

activate the measure project

Competences on blue energies are in hands of the national government, Competences on inland The regional government has which is seen as a limitation for Regional government renewable energies are in requested the transference Medium term regional development. Transference National government hands of the regional of competences on this of competences has been government. matter

LEGISLATIVE requested.

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Stakeholders that should Possible best practice/flagship Conclusion Time frame Measures for achieving them

activate the measure project

The region has a great potential to The national and regional become an international laboratory Investments and government have invested in for the development and testing of initiatives are being carried R&D infrastructures i.e. new technologies. Commercial out by national, regional Regional government PLOCAN. production may take some years governments, R&D and Medium/long term Private stakeholders National operators are more to become a reality. R&D is private sector to trigger R&D

R&D system and academia developing and testing LEGISLATIVE

- being conducted and R&D and transform the archipelago prototypes to produce offshore infrastructures and technical into a lab for these new wind energy and wave energy

NON capacities are in place. R&D efforts technologies. in the region. should be continued. No ad hoc financial instruments Currently, SODECAN employs are in place to back up ERDF resources for renewable development. Although there are energies in general. This best SODECAN instruments for renewable Regional government Medium/long term practice, however, seems hard NA energies activities currently in place Private financial operators to be applied for marine e.g. wind energy but are mainly

FINANCIAL energies which require high directed to small and medium scale investments. enterprises.

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14 Potential projects for the Atlantic Assistance Mechanism Atlantic assistance Maritime Possible projects Mechanism activities priorities  Market studies to identify potential products and market niches for processed fish products, hence adding value to fish.  Production of species in on land facilities e.g. Senegalese sole, and production of ornamental species. Fisheries and  Adding value to microalgae production trough extraction of aquaculture bioactive compounds. Large investments are required for this production.  Educational offer for professional divers and skippers specialised in aquaculture.  Technical improvements and promotion of energy self- consumption. Desalination  Improvement of the quality of desalinated seawater.  Technology transfer to Cape Verde and other developing nations, especially in Africa.

 Enlargement/reorganisation of port facilities for nautical activities Promote and especially for large recreational boats. Maritime entrepre-  Cooperation with other ports in networking. transport neurship and  Promotional campaign to inform the public about the and ports innovation opportunities of the sea careers in order to promote generational relief.

 Fit and repair and construction of recreational boats and yachts. It is notable that yacht and other recreation craft are not currently built in the archipelago. Ship building  Creation of a steady offer of education for the oil platform repair and repair and maintenance activity in collaboration with the private sector, which is currently offering training.  Training offer for repair of recreational vessels and other craft, especially in the use of synthetic material such as fiberglass.  Diversification of the touristic offer with activities related to sightseeing of birds, mammals, landscapes and diving; cultural Coastal and tourism. cruise  Consolidation of cruise routes with the other regions in the sea tourism basin and diversification of the offer of urban services for cruise stoppers.  Develop technologies to monitor and prevent fish escapes from sea cages.  Establish protocols together with the fishing sector to counteract escapes from cages.  Renovation of the fishing fleet (currently aged) in order to Fisheries and improve energy efficiency and security. aquaculture  Use of fishermen TEK in identification and potential creation of Protect, MPA where artisanal activities can co-exist with conservation secure and actions. develop the  MSP for conciliation in the use of the marine space for fisheries, potential of aquaculture and recreational fishing. the Atlantic  Develop technologies to reduce salt concentration of effluents of marine and Desalination the production process, or to find alternative uses for it. coastal Maritime environment  Enhance protocols of surveillance and coordination of actions to transport counteract oil spills and wrecks. and ports  New technologies for energy efficiency and reduction of emissions Ship building in vessels are required. and repair  Development of devices for observation of the marine system. Coastal  Improvement of energy efficiency in touristic sites, especially for tourism and aged infrastructures.

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Atlantic assistance Maritime Possible projects Mechanism activities priorities cruises  Transport of fish products due to insularity and double insularity Fisheries and is a key driver. Aid to alleviate transport costs seems to be aquaculture insufficient, especially in the cases of small production.  Provision of desalinated water to populations in the high parts of Desalination the archipelago. Maritime  Increase of the ferry frequencies to non-capital islands. Improve transport  Combined efforts with air companies to reinforce connectivity accessibility and ports between non- capital islands. and Shipbuilding connectivity N/A and repair

Coastal and  Combined efforts with air companies to reinforce connectivity cruise between non- capital islands. tourism

 Development of a model of maritime governance involving Fisheries and commercial and recreational fisheries, aquaculture and other uses aquaculture of the coasts e.g. tourism and public actors. Desalination N/A Maritime  Generational relief is becoming a problem in the case of the Create a transport shipping carers, especially for on board activities. Efforts should socially and ports be conducted to promote these career opportunities. inclusive and  Private training efforts to incorporate workers (and reincorporate sustainable Shipbuilding idle workers) to the oil platform activity, and other offshore model of and repair services, should be continued provided that this activity offers regional promising employment opportunities. development  The RIS3 considers tourism as a sector able to vertebrate Coastal economic and social development in the archipelago and even tourism and beyond. Projects for enhancing coordination with other sectors cruises such as fishery, desalination and shipping are crucial for development in the region.

Roles and contributions to external initiatives  Transatlantic Ocean Research Alliance R&D institutes such as PLOCAN are active in scientific, technical and logistical support to the EC in developing and implementing marine research cooperation between the European Union, USA and Canada. In fact, PLOCAN participates in the project Atlantic Ocean Research and Collaborative Supporting Action (AORA CSA), funded by EU’s Horizon 2020, which is carried out within the framework of the Atlantic Ocean Research Alliance. The aim of the CSA is to support the Commission in negotiations with the USA and Canada on trans-Atlantic Ocean Research Cooperation. The secretariat is able to provide research knowledge and experience through its partners (53). The CSA will be responsible for the organisation of expert and stakeholder meetings, workshops and conferences required by the Atlantic Ocean Research Alliance in the fields of marine ecosystem-approach, observing systems, marine biotechnology, aquaculture, ocean literacy, seabed and benthic habitat mapping, support actions e.g. shared access to infrastructure, dissemination and knowledge transfer, establishment of a knowledge sharing platform and other initiatives as they arise, taking into account related Horizon 2020 and on-going national and EU collaborative projects such as FP7.  Ocean governance

(53) MI (IE), ICES (DK), IFREMER (FR), PLOCAN (ES), IMR (NO), RANNIS (IS), CV (PT), DFO (CA), WOC (UK), IOCUNESCO (FR), MCTI (BR).

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As it has been pointed out elsewhere in this report, the Canary Islands enjoy a privileged geographical position in the mid-Atlantic with high relevance in international trade and socioeconomic development for less developed regions. The archipelago is well placed to play a relevant role in international ocean governance, being an outpost of the EU, and having geographical and cultural proximity to Africa and America. The institutional capacities of the archipelago provide an asset for the EU in ocean governance. It has a great potential for maritime surveillance and security. Infrastructures and expertise are in place to contribute to development of the neighbouring regions. The Canary Islands’ R&D system has a good potential to turn the archipelago into a lab for the development of technologies to monitor the marine environment and back up decision making with sound data and information on the state of the marine environment and its resources in a context of climate change and increasing food demands. The capacity to both conduct surveillance on the maritime space and monitor the state of the sea and natural resources is particularly relevant for the EU in terms of consolidating its role as a major player in international governance. In fact, Canary Islands’ research institutions are being part of research networks such as the Transatlantic Ocean Research Alliance and participate in many EU funded projects at EU and Macaronesia level. The various strategies described in previous sections highlight the role of the diverse marine and maritime activities in the development of this region. They are in many aspects consistent with the aims of the EU to improve international governance to the benefit of sustainable blue growth.

 EU neighbourhood actions The UE has particular interest in cooperating with developing nations in topics related to poverty alleviation, water provision and health, amongst other fields of cooperation. In this context, the EU conducts many projects in Western African countries under the umbrella of the EDF. The Canary Islands location, infrastructures, R&D and education, amongst others, are highly relevant for cooperation between the EU and Western Africa countries too. In fact, cooperation with countries such as Cape Verde, Senegal and Mauritania is being conducted in the framework of the MAC program which is funded by the ERDF. The cooperation with Cape Verde has been particularly fruitful especially in the fields of water provision, especially through capacity building and infrastructures in the fields of desalination of seawater, poverty alleviation through development of nautical activities and tourism in general, and prospection and valorisation of new species for the fishing activity, amongst others. The Government of Canarias and Cabo Verde are working together to consolidate a cooperation agreement in matters related to energy, water and tourism. Especial interest is placed in development of renewable energies (54). Besides official cooperation the private sector of the Canary Islands plays a key role in promoting development in western African countries which include private promotion of the blue economy through the Marine and Maritime Cluster of the Macaronesia, development of port infrastructure in Mauritania and investments in fishing and tourism in Cape Verde.

(54) http://www.laprovincia.es/canarias/2016/11/28/canarias-cabo-verde-perfilan- acuerdos/885368.html.

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Realising the potential of the Outermost Regions for sustainable blue growth ANNEX 9 TO THE FINAL REPORT — THE BLUE ECONOMY IN THE CANARY ISLANDS

List of interviewees

Organisation Maritime activities concerned Number of interviewees

Fundación Puertos de Las Palmas Ports; international cooperation on 1 port matters Grupo de Acción Costera de Las Fishing Local Action Groups (FLAG) 1 Palmas Instituto Tecnológico de Canarias R&D and innovation on renewable (ITC) energies, desalination, aquaculture, 2 and others Ayuntamiento de Las Palmas Promotion of marine and maritime activities, including coastal and nautical tourism, coastal fisheries and promotion of entrepreneurship. 1 They carry out the initiative Ciudad del Mar and the international marine fair FIMAR Cluster Marítimo de Canarias Shipping, ports, cruises, aquaculture, shipyards, industrial 1 fishing, nautical activities Centro Tecnológico de Ciencias R&D and innovation on aquaculture, 2 Marinas (CETECIMA) nautical sector, and others. Gobierno de Canarias — Agencia Government. Agency in charge of Canaria de Investigación, the implementation of the RIS3 2 Innovación y Sociedad Universidad de las Palmas de Education, R&D and innovation, 5 Gran Canaria aquaculture, algae research Plataforma Oceanográfica de Research, development and Canarias (PLOCAN) innovation in marine energies, 1 aquaculture, operational oceanography Federación del Metal de Tenerife Private federation of the metal (FEMETE) sector, including naval sector i.e. 4 ship repair; it also provides technical training. Asnáutica Nautical activities 1 Cabildo de Tenerife — Parque Research, development and Científico y Tecnológico innovation on technological sectors 1 in general Universidad de La Laguna Coordination of the tecnological 1 platform of the Macaronesia project Instituto Español de Marine and fisheries research and Oceanografía (IEO) coordination with the fishing sector 1 in data collection. ALGALIMENTO S.L Algae production 1 Elittoral Marine consultant 1 Cabildo de Gran Canaria — Island's goverment. Promotion of Sociedad de Promocion innovation and technology 1 Económica de Gran Canaria Sensorlab SL Environmental and marine 1 technology

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[Catalogue number [Catalogue

824

]

doi: 10.2826/64901