Despite tourism in Spain continuing to operate at record levels, its growth rate is slowing down. According to Exceltur, the association representing the 30 largest companies in the sector, growth in the second quarter of this year was 7.4%, down from 9.3% in the same period last year, and significantly lower than the 16% growth at the end of 2023.
Decline in domestic tourism demand
Óscar Perelli, Director of Studies at Exceltur, noted that while the influx of foreign tourists who spend more money has increased, domestic tourism demand is stagnating. Overnight stays by Spanish tourists grew by only 0.4%, with their spending increasing by 5.9%. In contrast, spending by foreign tourists grew by 19%. Experts attribute this stagnation in domestic demand to rising prices.
Hotels in Spain are more expensive
The National Institute of Statistics (INE) reported that the Hotel Price Index rose by 8.1% year-on-year in May. Hotels charged an average of €111.7 per occupied room, a 9.2% increase compared to the same month last year. During the pandemic, domestic demand saw the most significant growth, but it is now declining due to higher prices that foreign tourists can afford.
Summer projections
For this summer, Exceltur expects a growth of 5.3%, indicating a normalisation of growth. Regions like the Basque Country and Madrid are expected to grow by more than 8% and 11%, respectively. For the entire year, a growth of 4.6% is expected, double the general economic growth forecast, with projected revenues exceeding €200 billion.
Impact of anti-tourism protests
Exceltur criticises the increasing protests against mass tourism, which sometimes result in violence against tourists. José Luis Zoreda of Exceltur calls this “unacceptable” and urges for coordinated public and private strategies to manage tourism sustainably. He warns that aiming for 120 million tourists is unrealistic and could have negative consequences for both tourists and residents.
Impact on Spain’s image as a tourist destination
Zoreda points out that international media coverage of the protests harms Spain’s image as a tourist destination. He highlights the need for regulation of tourist rentals, which already cause community tensions. Exceltur supports strict measures against tourist rentals, like those in Barcelona, to protect residents’ quality of life and make the city more manageable.
Tax increase on tourist rentals
Exceltur welcomes Sumar’s proposal to adjust the tax on tourist rentals. People who rent their homes to tourists would then have to pay VAT, similar to other economic activities. However, the organisation is concerned about the potential introduction of a shorter workweek, which Perelli believes would have negative financial consequences for the tourism sector. Additional staff would be needed for roles such as pilots, waiters, and hotel