Big tourism players worldwide faced significant distribution mistakes. After the pandemic wiped out much of the sector, tourism reemerged as a key driver of national growth, yet the chatter around it remains intense. The Recovery, Transformation and Resilience Plan (PRTR) was approved years ago as a central tool to reactivate an economy battered by covid, leveraging a substantial influx from Next Generation funds. Yet, concerns continue to surface as plans unfold.
Since then, industry leaders have pressed for a much larger share of European funds than initially allocated. The Administration mobilized a total of 163 billion euros under the plan by 2026, but the latest addendum barely nudged that budget forward, with 3.4 billion earmarked for the sector—roughly 2% of the total. Tourism stakeholders are calling for electrification, new renewables, microchips, and the creation of a dedicated PERTE for tourism, mirroring schemes already crafted for aviation and maritime sectors.
Criticism of fund adequacy and management has intensified in recent years, especially around the Madrid International Tourism Fair (Fitur). At this year’s event, concerns were reiterated that European funds should be directed toward tourism in a more targeted way. Carmen Riu, co-CEO of the Riu Group, highlighted the absence of a tourism-specific PERTE and stressed the need for a transformative plan that aligns with the sector’s scale.
Lobby group Exceltur, which brings together around thirty major companies such as Meliá, Iberia, Globalia, NH Hotels, Riu, and Amadeus, has been vocal about the sector’s need for new development. The conversation has grown louder about reallocating funds toward broader, more impactful projects instead of smaller municipal reforms with limited tourism impact.
There is concern that a large portion of funds is being funneled into smaller projects similar to past plans that did not yield the transformative results anticipated. Many experts argue that tourism should prioritize major investments in leading destinations over incremental improvements in towns with weaker tourism relevance, ensuring a higher return on public spending and greater private mobilization. The shift would aim to modernize flagship destinations and accelerate long-term growth.
Half of the industry does not know the funds
Exceltur conducts quarterly surveys with about two thousand tourism businesses to shape its economic outlooks. The latest findings reveal that awareness of European fund allocations remains low: a 3.6 out of 10 impact expectation on activities is reported, and nearly half of respondents (about 48.9%) claim to know how the funds are distributed, with almost 90% lacking access to tourism-oriented programs.
Analysts note that insufficient initial allocation and the 3.4 billion earmarked for tourism call for strategic reconsideration. The prospect of reorienting investment toward sector-wide priorities, such as a cohesive national strategy, is seen as essential to maximizing the three-year implementation window. Exceltur highlights a need for stronger joint governance to ensure the investments achieve meaningful, transformative outcomes within the plan’s timeframe.
Years earlier, Exceltur proposed a sectoral plan to concentrate 17.5 billion euros of European funds on tourism over ten years. Roughly 15 billion would come from PERTE in the first three years, with an additional 2.5 billion from traditional European funds. The aim was to modernize Spain’s classic sun-and-beach destinations and mobilize a further 37.5 billion in private investment.
The push now from major hotel groups is to redirect unimplemented budgets toward projects in well-established destinations, addressing renovation needs and preventing overcrowding to avoid turning destinations into overcrowded spaces that spark social backlash. This shift is framed as a public-private investment effort involving groups like Meliá and broader industry coalitions.
He defended the government plan
In recent years, the government has defended the ambition and transformative capacity of its tourism strategy, even though the sector has not been as well-funded as planned. The stance has been echoed by political leaders in charge of tourism and industry, underscoring a commitment to the sector’s recovery and renewal.
Officials point to investments totaling 3.4 billion euros as evidence of determination to reinforce policies that revive destinations, boost efficiency, and drive decentralization and seasonality adjustments in tourist experiences. The message emphasizes that funds can be redirected and that the naming of a PERTE may be secondary to achieving tangible outcomes for tourism.
The government contends that tourism does not rely on a PERTE, arguing that these strategic projects target industrial sectors rather than services with different economic dynamics. It notes that a portion of all investments must come from the state, and acknowledges that private companies would have faced challenges during the sector’s collapse without public support. The plan also earmarks a dedicated tourism component within the Recovery Plan, including investments of 3,940 million, of which 3,400 million come from NextGeneration funds.
The sector’s modernization and competitiveness ambitions extend into the Tourism Sector Modernization and Competitiveness Plan, built around three pillars: destination-level sustainability initiatives mobilizing 1,800 million across more than 500 projects nationwide; digitalization efforts with substantial investments; and a core emphasis on diversification and deseasonalization to elevate product quality and broaden appeal.