Spain’s hospitality sector aims to close the year on a high note, anticipating a turnover growth between 5% and 10%. Looking ahead to the next year, however, the pace is expected to ease, with gains not exceeding 4% versus 2023, as activity appears to plateau amid shifting market conditions.
Employment in the hospitality field reached a record high, based on research released this week by the employers’ association. The peak seasons in July and August saw more than 1.9 million workers, and the annual average tallies show an increase of over 90,000 jobs compared with the prior year.
A positive 2023 but signs of weakness
For 2023, Spain’s Hotel Management Association reports a year of recovery, with provisional figures still under review but encouraging. Turnover rose by 8.9% through October 2023, compared with the same period in 2022, driven largely by a strong first half. While the overall year finished on a positive note, the association cautions that sales and operations are reaching a ceiling, hinting at a more balanced, slower growth ahead. This nuance underscores a sector that remains optimistic yet vigilant about near-term momentum.
Moderating the pace for next year
Forecasts for 2024 suggest accommodation activity will slow, with growth projected between 2% and 4% relative to 2023. Key factors shaping this outlook include employment trajectories, the ongoing impact of higher interest rates, political uncertainty, and price dynamics—elements identified as critical by the sector. These factors could influence demand patterns and business development in the year ahead.
Average spending is rising: 1,040 euros per person in 2022
While the industry’s bills have climbed, consumer expenses have risen as well. The association’s latest 2022 analysis shows an average per-capita expenditure of 1,040 euros across the country, up from 2021. This uptick coincided with higher prices, where 2022 recorded an average price increase of 6.4% while the general consumer price index rose by 8.4%.
Neighborhood and rural bars are closing
The hospitality landscape has seen years of closures followed by a recent rebound in openings. Yet, as highlighted during the yearbook presentation, small neighborhood bars in local areas and rural districts continue to shut down. The report notes a decade-long decline in such venues, dropping from 197,391 to 175,890 establishments over ten years, a trend that raises concerns about access to local, intimate dining options.
Meanwhile, restaurants and cafés—larger, more recruitable operations—have expanded, with the number of venues rising from 73,023 in 2021 to 83,879 in the following year. Overall, about 279,516 workplaces existed at the start of the previous year, marking a 1.9% year-on-year increase.
Exception: No more bars in Extremadura
Across the regions, most areas posted gains, but Extremadura stood out as an exception where the count of dining establishments remained steady at 5,970, and Melilla saw a decline in business activity.
Billing increased by 4%
Per the yearbook, 2022 restaurant revenues rose by 4.3% to 90.701 billion euros. The improvement is attributed primarily to higher sales volumes rather than margins, reflecting a gradual effect of price increases that began early in 2022.
Worker plan
The year 2022 tallied a total of 1,222,900 workers in the hospitality sector. The composition shows a decline in both employee and freelance roles, but the share of female employment rose slightly from 51.9% in 2019 to 52.2% in 2022, amounting to a total of 638,300 women in the workforce.
Notes: figures are drawn from the sector yearbook and related analyses by the Spanish Hospitality General Secretary. [Attribution: Spanish Hospitality Association Yearbook, industry report]