Post-pandemic poverty: province and region analysis
Early in the pandemic, the social shield implemented by authorities helped prevent a total economic collapse. This support kept many households above a harsh threshold, aided by programs such as postponement measures and assistance for the self-employed. The protection existed unevenly, with some regions and cities hit harder than others, especially those relying on tourism, footwear manufacturing, or consumer-driven industries. In such areas, rent relief and other supports influenced how families fared during the crisis.
That pattern is echoed in the latest data released by the Tax Agency and municipalities for 2020. Benidorm stands out as a location where declared income fell most sharply. Across the province, the average gross income declined about 2 percent, from 23,348 to 22,871 euros. The autumn season in the Costa Blanca city remained a tourism focal point, yet income levels still dipped by more than 10 percent in some cases.
Specific to Benidorm, typical income dropped from 22,742 euros to 20,333, a loss exceeding 2,400 euros. The declines stemmed from lower wage levels due to hotel closures and a shrinking registered population, alongside reduced profits from all types of employment and business activity. Freelancers reported smaller earnings, and many incomes tied to tourism showed weakness. Movable capital income also fell, with fewer dividends paid by regional companies.
Across municipalities there are recurring patterns of reduced declared average income. In addition to Benidorm, La Nucia recorded an eight and a half percent cut, El Campello a seven point four percent drop, Mutxamel around seven percent, and others shrinking by a few points. This trend reflects what residents reported in income tax returns for the year.
In this context, districts with more vulnerable populations faced the pandemic with higher risk of poverty. The Generalitat Statistics Portal indicates that about a quarter of residents in these zones experience some material deprivation.
Meanwhile, interior towns also saw declines in declared income, with some areas showing a five to seven percent drop. This decline correlated with reduced orders in local footwear factories that depend heavily on non-EU markets, which contracted more than European markets. Social restrictions during periods of high infections also played a role.
Post-pandemic poverty: province and region analysis
While many towns experienced income reductions, a few municipalities reported higher median incomes in 2020. The most notable example shows a rise from 23,243 to 27,358 euros per taxpayer in one town, though the gain largely reflects gains in a small number of major business activities registered that year. Other towns reporting income gains include areas with stronger agricultural sectors or diversified economies, pushing median income up by several percentage points. Tourism-related towns and rural zones with growing agricultural outputs contributed to this mixed picture.
Even so, these shifts do not erase the broader pattern: the wealthier municipalities on the hills and coastal zones remained relatively affluent, while some inland towns posted lower averages. Sant Joan and El Campello emerged as provinces with higher average earnings in different years, while other communities reported the opposite trend. The overall landscape still shows a wide gap between the richest and poorest municipalities in the region.
Across the Alicante metropolitan area, declared incomes remain among the highest nationally, with certain interior industrial towns showing strong activity and others reflecting the heavy tourist flows in coastal zones. Purchasing power remains concentrated in areas like Marina Alta, Xàbia and Dénia, while many of the lower-ranked towns are primarily rural or agricultural communities in Vega Baja and Vinalopó.
Rich country, poor country.