Bigger investments in sun and beach destinations are seen as essential to maintain the appeal of Spain’s tourism industry. A report titled Recovery of international tourism in Spain after the pandemic, prepared by the Bank of Spain, was published one week before the 46th opening of the International Fitur Fair on Wednesday, January 18.
In 2019, Spain welcomed more international visitors, ranking behind France and ahead of the United States with a total of 83.7 million tourists. After a pandemic that halted travel, tourism is gradually regaining momentum but has not yet returned to pre-pandemic levels. Through November, visitor numbers reached 67.4 million, about 85% of the record year prior to the pandemic. The 2023 outlook aims to normalize both industry and government conditions amid macroeconomic uncertainty and persistent high inflation. The trend has been especially evident in the hotel sector, where overnight stays showed the most negative evolution among European destinations, notably affecting British and German visitors. Source: Bank of Spain
What matters most, the report notes, is the erosion of purchasing power and the loss of Spain’s attractiveness relative to other Mediterranean destinations. A notable example cited is Turkey, which recovered earlier in 2022’s third quarter after the pandemic and posted higher occupancy than many peers. The Bank highlights that a weaker sterling and the United Kingdom market’s size, historically a primary origin for Spanish tourism, have contributed to softer early signals for Spain. Source: Bank of Spain
To counter these pressures, the Bank of Spain recommends stepped-up investment to preserve Spain’s leadership in tourism. The focus is on renewing and improving tourism sites, especially at saturated and mature destinations such as Adeje, Calvià, Lloret de Mar, Benidorm, and Torremolinos, to sustain Spain’s attractiveness as a tourism destination. The emphasis is on safety, high-quality infrastructure, and reliable experiences, aligned with a national plan that the government has prioritized for this year, though the specifics remain unclear. Source: Bank of Spain
The Bank also calls for strategies to increase revenue growth by attracting higher-spending visitors. It argues that boosting the perceived quality of services and expanding Spain’s appeal to business, city, and cultural tourism can strengthen its market position. The path forward includes leveraging digital channels for more personalized, experiential tourism while advancing environmental sustainability. Source: Bank of Spain
green transition
In the medium term, the Bank warns of a fresh challenge tied to Europe’s green transition. The rising cost of air travel due to emissions regulations, coupled with Spain’s heavy reliance on air transport (about 83% of foreign visitors arrive by plane, per the National Institute of Statistics), could dampen demand for longer trips and high-spend segments such as business travel. Source: Bank of Spain
The European Union’s plan to cut CO2 emissions by 55% by 2030, known as Fit for 55, includes tighter emissions trading and greater use of sustainable aviation fuels. A kerosene tax is being considered for the Twenty-Seven, and in Spain, it would add to the airfare rate announced earlier by the government as part of environmental measures. The sequence began with the pandemic, followed by taxation pauses due to the war in Ukraine. Source: Bank of Spain
According to a Deloitte report requested by the Airline Association, which includes Iberia, Air Europa, Air Nostrum, and easyJet among others operating in Spain, environmental measures and new taxes could reduce tourist arrivals by up to 11 million annually. This scenario could translate into approximately 12.2 billion euros less in revenue, a 1.6 percentage point drop in GDP, and around 430,000 fewer jobs by 2030. Source: Bank of Spain / Deloitte report