The hospitality industry in Spain is on track to achieve another record-breaking summer, with sales expected to grow by 5% compared to last year, largely driven by a surge in tourism. According to government projections, around 41 million tourists are expected to visit Spain between June and September, marking a 13% increase from 2023.
This influx of visitors is anticipated to significantly boost the sector’s revenue, with summer sales figures likely to surpass those of the previous year.
Optimistic outlook
A recent survey conducted by the Spanish Hospitality Association (Hostelería de España) indicates according to El Economista a positive outlook for the industry, with nearly 70% of business owners expecting this summer season to be as good as or better than last year. Specifically, 36.3% believe the season will be similar, while 31.4% anticipate it will be better or much better. On the other hand, 32.3% of respondents expressed concerns that the season could be worse.
In terms of revenue, 42% of those surveyed expect their turnover to exceed that of the summer of 2023, while 36.3% predict a decrease, and 21.8% believe it will remain unchanged.
Employment on the rise
The growth in the hospitality sector is also reflected in employment figures. As of July, the industry employed approximately 1.96 million workers, an increase of 55,554 compared to the same month last year, representing a 2.9% rise. This marks the third consecutive month with over 1.9 million workers in the sector. However, the rate of growth has started to slow down, both on an annual and monthly basis.
The hospitality sector now accounts for 8% of total employment in Spain and a significant 64% of jobs within the tourism industry. Despite this, the industry faces ongoing challenges, particularly in terms of labour shortages, which have been exacerbated by recent wage increases.
Wage dynamics
Despite the positive sales and employment trends, the hospitality sector continues to struggle with wage issues. The latest data from the Quarterly Labour Cost Survey (ETCL) conducted by the National Institute of Statistics (INE) revealed that average wages in the industry dropped from €1,379.29 in the last quarter of 2023 to €1,309.45 in the first quarter of 2024. This decline comes even as businesses anticipate strong performance during the peak summer months.
As the summer season progresses, the future of the industry will likely depend on various factors, including price trends, demand, and the availability of labour. So far, the sector has reported a nearly 9% increase in revenue for the first five months of 2024 compared to the same period last year, with the accommodation segment seeing a 12.2% rise and the restaurant segment a 7.5% increase.