Holidays in Spain have become considerably more expensive

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The summer holidays for Spanish children start on Friday, which means that many families are preparing to leave for their holiday destination. The sun, beaches and cozy chiringuitos beckon, but this summer holidaymakers will have to dig deeper into their pockets. Prices for accommodation and restaurants have risen sharply, making this holiday season one of the most expensive ever.

In May 2024, prices increased by 11% compared to last year. This makes it the fifth month in a row this year with record figures. According to the INE, prices of restaurants and hotels have increased by 5.2% compared to 2023. Package holidays within Spain are 17.7% more expensive, while hotels, hostels and tourist rental properties are 9.4% and 6.6% respectively increased. Fast food and takeaway meals have become 5.3% more expensive, and prices in restaurants and cafes have risen by 4.8%. Fuel costs increased by 4.8% in May.

Long-term increases since 2019

Since 2019, prices of hotels have increased by 36.5%, beer by 27.8%, and tourist rental apartments by 27.7%. Fast food is 25.1% more expensive and prices in restaurants and cafes have increased by 20.2%. This easily exceeds the 14% wage increase in the same period.

Regional differences

Baleares, Galicia and Castilla-La Mancha saw the largest price increases since 2019, while Navarra and Asturias recorded the smallest increases. At a provincial level, Murcia and Baleares saw the highest increases in accommodation costs, 39.5% and 37.3% respectively.

Impact of foreign tourism

The increase in tourist prices is related to the increase in international visitors. According to the Banco de España’s quarterly report, foreign tourism was the driving force behind economic growth in the first quarter of 2024. International visitors are spending more, staying longer and visiting diverse destinations, allowing companies to raise prices.

Outlook for the summer

Turespaña predicts a further increase in international visitors this summer, with airline capacity expected to grow from the UK by 8%, and direct flights from the US and China increasing by 16% and 50% respectively. This indicates continued demand, despite higher prices.

Also read: “Spectacular expectations”: Costa del Sol expects another record year for tourism

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