The Spanish tourism sector is gearing up for a summer season unlike any other. Global recovery remains uncertain, and projections through 2024 or 2025 suggest a cautious rebound. Yet the southern European Mediterranean states have emerged as standout performers, with UNWTO data indicating they already surpassed a 1% share in 2019, signaling a resilient demand that travelers are embracing with minimal hesitation. The upcoming summer is anticipated to be the most expensive on record.
Activity levels have surprised industry professionals even during Easter. Spain welcomed 7.2 million visitors in April, up 18.5% from 2022, while the average hotel rate surpassed 100 euros. International tourism expenditure reached 8,480 million euros, marking a 22.7% rise from 2022 and a 20.1% increase over 2019.
Inflation, conflict, wages
Forecasts indicate this momentum will persist through the peak summer months, even as economies struggle with post-pandemic fallout and persistent inflation that drives up costs for flights, lodging, and tourism services. Europe remains unsettled by ongoing conflict in the region, and Spain has faced a significant erosion of purchasing power in 2022. Still, the urge to vacation remains strong, and a dream getaway continues to attract travelers.
Experts agree the strong start may reflect a rebound effect following lockdowns and saved resources during the pandemic. A sense that tempus fugit has intensified a collective drive to explore while the world reopens, even if the path to normalization remains uneven.
UNWTO emphasizes collaboration between governments and the private sector to offer diverse travel options and broaden destination choices. (UNWTO)
“Travel is part of the human experience,” notes Alexandra Priante, UNWTO’s European Director. “More people are traveling now who hadn’t before. Prices have risen, yet demand remains robust. Planes are expensive but often full.” She adds that this motivation is unlikely to fade, with industry watchers predicting stabilization in 2024, or at least a plateau in prices. (UNWTO)
“Prices must be managed so that Spain remains an appealing destination,” comments Pablo Diaz, a professor of economics and business at the Universitat Oberta de Catalunya, specializing in tourism. “Spain’s competitiveness should rest on value, not just price,” he notes, highlighting that price remains a key factor but not the sole driver.
It’s worth noting that the travel surge began in 2022, the first year with relaxed restrictions, and the trend has continued. Diaz cautions that many families have already exhausted most of their travel savings, making the market response uncertain. The shift toward shorter, last-minute bookings persists, complicating forecast models.
The customer response
“Demand is aligned with the current price point, at least for now. We observed that price increases were abrupt, and some hotels retrenched, but demand held,” says Raul González, CEO of Barceló, acknowledging a 6%–7% price uptick compared to 2022.
“The critical question is sustainability,” Priante adds, considering environmental, financial, and social dimensions. “Hotels, railways, and airlines lost revenue during the downturn and are trying to recover, but cost cannot be pushed higher without limits. Pre-pandemic issues with environmental and social harms remain unresolved.”
Flights have surged about 36% above 2022 figures, as post-Covid price uplift persists.
Pathways proposed include “intelligent, coordinated, and shared management of tourist flows” that do not rely solely on stricter arrival limits across the EU, which would hamper free movement. Instead, there should be analysis of arrivals by country to offer viable alternatives. As an illustration, Venice faces a structural capacity problem: the surrounding area bears the burden of visitors due to space constraints. If some travelers cannot be accommodated, attractive alternatives like nearby wine regions or countryside escapes could ease congestion and lower costs. Governments should ask how many visitors can be hosted sustainably each day and then tailor campaigns to diversify destinations. The approach should be pragmatic, data-driven, and collaborative with private sector partners and neighboring nations, ensuring capacity planning extends beyond a single season. If demand outstrips supply, adjustments must be made. A 360-degree view of tourism is essential to prevent a repeat cycle next summer.
According to the ski flight search engine, early in the year prices for flights rose 36% and accommodation costs rose about 7% versus 2022, with fuel and energy prices cited as drivers. Diaz suggests price increases reflect these costs, while Priante contends the trend is less sustainable when providers regularly raise prices and concentrate power in the airline sector. The takeaway is a call to stabilizing prices, especially for short-haul flights, to avoid runaway costs.
Higher spend, tighter margins
INE data show average spending per tourist climbing 3.6% annually to 1,172 euros, with daily expenditure up 11.6% to 173 euros. UNWTO reports international tourism revenue at about one trillion dollars in 2022, 50% higher than 2021, with Europe leading the global revenue share at 504 billion euros. Travelers from China are expected to return, and American visitors partially offset reduced Russian tourism caused by the Ukraine conflict. Destinations like Turkey and Tunisia have seen declines, while competition shifts.
Industry analysts caution that profitability levels in 2019 were not fully recaptured, and spending remains elevated as businesses work to amortize pandemic-era investments. The summer could close with record revenues, yet profitability may lag pre-pandemic highs.
One final concern for UNWTO is the difficulty in attracting and retaining workers, especially younger staff. Experts say a shift in mindset toward more stable, long-term employment could help restore the seasonal labor pipeline, which is crucial for sustaining tourism growth. A meaningful wage and stable career prospects are viewed as essential to preserving the sector’s future viability.