'Due to a mixture of arrogance as a leading holiday destination and under investment in our tourist attractions and facilities, Tenerife has fallen some way behind a host of other destinations,' said a spokesman for the tourism department.
'Now we are fighting back, looking at new developments, improving transport and looking at environmentally friendly opportunities,' he added.
'We aim to attract new visitors, retain the loyalty of current visitors and attract investment into the property market.'
The eight year strategic plan will see a number of changes to be implemented between 2008 and 2015 which the authorities hope will recapture the position which Tenerife once held as a favourite family destination in Europe.
They want to compete with Greece, Turkey and even Egypt who have overtaken Tenerife as tourist attractions for the masses lured by cheaper prices.
Much of the new development is set to take place in and around the Puerto de la Cruz resort area with the initial rebuild of the 1970's style blocks and a major revamp of the tired hotels, in the hope that tourist money will once again start to flow back to the island. It will also reach out to new markets such as Poland, Russia and Italy.
The move should help the buy to let investor market. One property investor in Tenerife said there are good yields but you need to stand out from the crowd. 'There are a lot of two-bed apartments out there so we offer things that others don't: air-conditioning, king-size beds, satellite TV, terrace with a barbecue, hammock and sea views,' said Marcus Barnett, who rents out an apartment in Los Cristianos.
'You may need to add an extra bathroom to keep up with market standards. Other things you might also consider providing are cycles, DVDs, an iPod docking station, or baby-friendly items such as cots and high-chairs,' he added.
But it pays off. He had 50 weeks of booking last year – charging £415-£425 a week. 'The apartment cost £171,000 and with £18,000 income, the 10% yield is pretty high,' he pointed out.
