Tourism is riding a peak in its history. As Spain’s main economic engine, contributing roughly 12.8 percent of GDP, tourism tastes the fruits of a postpandemic rebound. Spain welcomed a record 85 million international visitors in 2023 and spent about 108.662 billion euros, with expectations to surpass these figures in the current year. On the eve of Holy Week, the sector feels buoyant and looks ahead to a summer season that could become the strongest on record, while also keeping an eye on sustaining momentum and avoiding a future hangover from a surge in demand.
Airlines have prepared extensively for a summer schedule that runs from Sunday, March 31, to Saturday, October 26. Across the Aena airport network, roughly 243 million seats have been booked and about 1.4 million commercial operations are planned. Those figures represent about 7.9 percent more departures and 7.7 percent more landings than the same period in 2023, and well above 2019 levels. Iberia, the flag carrier, will operate about 32 percent more capacity than in 2019.
The hotel industry shares the same upbeat mood. “2024 started as strong as 2023 ended,” says Simon Pedro Barceló, co-president of the Barceló Group, the second-largest hotel chain in Spain after Meliá, during a hotel sector outlook event. The discussion covered urban hotels and international expansion, organized by Prensa Ibérica and sponsored by Barceló Group and PwC.
January set the tone for this celebratory mood, placing tourism at the top as the best January on record for international arrivals and tourist spending, with 4.77 million visitors and 6.5 billion euros spent, respectively.
Record-smashing months ahead
Looking ahead, February, March, and April are projected to push further toward records, with forecasts of about 14 million visitors and 19 billion euros in expenditure, surpassing last year’s numbers according to Rosana Morillo, the state secretary for Tourism. “It’s a fantastic year that surprised everyone after the pandemic,” notes José Ángel Preciados, CEO of Ilunion Hotels. The ONCE-linked chain’s leader suggests a candid self-evaluation about what Spain’s brand really stands for. “There are many messages about Spain as a brand beyond counting visitors,” as one executive adds.
Another way to measure success lies in pricing, which has risen as inflation and robust demand lift revenues. “We get what we deserve. Prices will reflect customer perception in real time,” says Victoria López, head of the Canary Islands-based Fedola group. Victor Martí, head of the GMA fund, cautions against overexuberance, warning that a misstep could backfire. “Customers are more price-sensitive; we must watch markets that compete, like Turkey, as they resume full capacity,” he says. The lesson echoes a 2018 downturn when foreign visits fell as some Mediterranean rivals regained ground with cheaper prices amid geopolitical stability concerns elsewhere.
Abel Matutes, president of Palladium, believes 2024 will outpace 2023, yet he remains cautious about 2025, noting a slight drop in enthusiasm from issuing markets as reservations slow, particularly among North American travelers, possibly tied to the election year atmosphere.
Drying up and staffing concerns
The industry wants to savor the moment but must prevent any slip that could spoil the party. Drought and labor shortages are the chief threats. Drought affects Andalucia and Catalonia, with Catalonia remaining a major tourism hub yet dealing with water scarcity that can affect pool availability. Some operators in Lloret de Mar have funded desalination solutions to ensure hotel pools stay filled during peak visits.
“Every town handles this differently. In Lloret, the hotelier association partnered with the town hall to install a desalinator. The goal is to guarantee hotel pools are filled for the summer,” notes Benet Ferrer, CEO of Aqua Hotel Group.
Job markets also tighten. February saw 2.6 million tourism-related social security affiliations, up 4.9 percent from a year before, but the sector agrees that postpandemic hiring remains a challenge. María Gaspart, general director of the Catalan group Atiram, describes it as a persistent struggle.
Housing for tourist use continues to compete with hotels for guests. In the Canary Islands, tourist apartments are estimated at 195,000 units, while the archipelago offers 114,105 hotel rooms and 263,882 tourist places, according to INE January estimates. Local officials there stress the need to regulate these units to protect the image of the destination.
Toward regulation, industry leaders also stress the importance of communicating the benefits of hotel stays over renting a tourist apartment. “Regulation is needed, but we must also persuade travelers that hotels offer superior value,” argues the head of Paradores, Raquel Sánchez, echoing the sentiment of other industry executives.
Expanding supply and year-round offerings
In the long run, the challenge is to spread demand more evenly across the calendar and diversify offerings. Paradores envisions reaching 100 establishments next year, including many in small inland towns, while Amancio López of Hotusa notes that tourism has reshaped cities but there is still a depopulated Spain to address.
Some observers see a shift in traveler behavior, suggesting that 2023 saw more visitors than 2019 but not necessarily more beds. This could signal the start of stronger year-round demand in Spain, as the market tests new patterns and opportunities.
Companies are also diversifying their portfolios. Fedola in the Canary Islands has launched a family-friendly hotel concept aimed at teens, offering day and night activities, including Formula 1 simulators, surfing pools, treehouse accommodations, and nightlife without parental supervision. López emphasizes that some hotels will offer multiple dining options, while others position themselves as luxury experiences, illustrating how the industry is expanding beyond traditional sun and beach offerings.