Spain caresses record revenue amid massive tourist return and rise in prices

with the strength national demand as a great fortressThe revival of the sector, according to the forecasts of the lobbyist Exceltur, increased the tourism GDP to 159,490 million euros in the whole of 2022; Thirty largest companies in the industry combined (including Meliá, NH, Iberia, Globalia, Riu and Amadeus).

Spain took last year 71.5 million international tourists based on arrival forecasts administered by both the industry and the Government. This figure implies that the all-time high of 83.7 million visitors has rebounded by close to 85% from the pre-Covid record levels in 2019.

But while there were still 12.2 million fewer arrivals last year than in 2019, the country’s tourism revenue has reached its pre-pandemic high, which international travelers spend during their stay, effectively affecting the Spanish economy. According to Exceltur’s estimation, income from tourism 69,000 million euros last year, more than double the previous year (+138%) and just slightly (-3%) below the record 71.2 billion in 2019.

still come less touristsbut the ones that come are more profitable to the Spanish economy. In the midst of an inflationary wave, the combination of price increases implemented by industry firms, longer average travel times, and more weight per visitor is produced by the combination of higher category touristic products, as highlighted by the association of large companies in the industry.

“There is an extraordinary situation. increase in average stay (+5.2%), a price increase [del 6,6% de media en el sector] and one supply growth and the customer segments with the largest economic contribution,” explains Exceltur in its latest annual report. “Overnight stays in five-star hotels are the best performers in 2019, below 2.6 percent, while the hotel industry average is -10.3 percent”.

Nine-year record

Spain has amassed nine consecutive years of tourism revenue records until the pandemic halted progress. According to the Bank of Spain’s balance of payments records, in 2019, a historical maximum of 71,202 million euros was reached in revenue from tourism, which was recorded for practical purposes as if it were export revenues of the Spanish economy.

In 2020, with international travel restrictions stagnating for most of the year, these revenues fell by more than 77% to just 16,177 million, the lowest data in almost three decades (especially since 1993). ). in 2021, international travelers Visiting the country injected 28.9 billion euros into the country’s economy, which is still 60% below pre-Covid levels and at late 1990s levels. According to Exceltur’s calculations, revenues last year reached 69,000 million, breaking the record for 2018, the second best year in history.

income and expense

While the Bank of Spain calculates the volume of income from tourism in the country on the balance of payments, the National Institute of Statistics (INE) prepares the Egatur tourist expenditure survey. And there’s always a million-dollar gap between both data, between the income of one and the expense of the other.

And the fact that all traveler spending in the INE survey includes not only what they actually do in Spain and which has a direct impact on our economy, but also: transportation costs This can be done with a foreign airline. Shipping costs are not included in the balance of payments.

The government predicts Spain will surpass historic pre-pandemic peaks in both international tourist arrivals and tourist spending this year, as confirmed by Industry, Trade and Tourism Minister Reyes Maroto this week. Government forecasts indicate that the industry will close above a record level this year. 83.7 million tourists International levels reached in 2019 and also exceeding 92,728 million euros total expenditure by these travelers who registered in the same year (20,000 million more than the tourism revenue record calculated by the Bank of Spain for that year).