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 might be that brits aren't holidaying in spain so much as they were a decade ago, that would explain the decline in local english

i know for sure there has been a dramatic rise in it here in Madeira and the Canaries are actually british territory for some time now 
 Could very well be the case.

I still haven't visited Madeira, but it's on my ASAP list  
 it's pretty nice here, but a bit weird as well

you have to do Espetada Madeirense preferably at a restaurant up in the hills, i can recommend the one near Santa Cruz (near the airport) called Talho Juza, really nice atmosphere, pretty place, just the other side of the dry southern biome and into a wetter climate as it is higher up)

i've been to these types of restaurant down near the coast near Caniso and the prices are astronomical and the quality, meh, and the atmosphere is garbage in comparison

from what i've seen, it's kinda nice in the general Funchal/Sao Martinho area, but you aren't really seeing the best parts unless you go further up the mountains and you must see some of the north side of the island, i can definitely recommend Ponta Delgada and Seixal, as i understand it Calheta is very nice too, and Santana is kinda more commercial, it might be nice i just never been there, it's on a high plateau, so not as much seaside action as those two places i mentioned... Sao Vicente is nice too, it's very provincial, and as i said you'll probably find a lot less english speakers here, this is kinda like farm district