Spain has been crowned this year as the world’s top tourist destination, which is not surprising given that before the pandemic it already attracted more than 120 million international visitors, a figure that is more than 2.5 times the country’s population, which is around 48 million inhabitants. Tourism is therefore one of the key drivers of the Spanish economy.
This summer, tourists are expected to spend around 11.7 billion euros in Spain, demonstrating the significant economic impact of tourism, with a growth of 22% over 2023. The number of tourists will likely exceed 90 million by the end of this year, who will spend an average of 1,300 euros per person. As a result, the sector will represent up to 13% of the national GDP. Analysts at Freedom24 delve into this Spanish success.
Spain is a prominent tourist destination in Europe, the region with the highest number of tourist arrivals in the world and globally. Over 100 million international tourists visited the country in 2022 and before the COVID-19 pandemic, Spain already attracted more than 120 million international visitors. Tourism is therefore one of the key drivers of the Spanish economy.
The impact of the tourism boom in Spain in recent years is evident. Tourists are expected to spend around 11.7 billion euros in Spain this summer, demonstrating the significant economic impact of tourism, with a growth of 22% over 2023. The number of tourists will likely exceed 90 million by the end of this year, surpassing the 85 million recorded in 2023. They will spend an average of 1,300 euros per person and over 8 billion euros in total on accommodation, while spending on catering services will increase by more than 6.7%. As a result, the sector will represent up to 13% of the national GDP.
The main sources of tourists this summer will be the United Kingdom, Germany, France, Italy, and the United States. Travelers from these countries are expected to increase their flights to Spain by up to 16% compared to 2023. An increase in Asian tourists is also expected: China, for example, has already increased the number of travelers by 19% in the first two months of this year compared to 2019, before the pandemic.
Spain’s international recognition as a tourist destination has historically attracted tourists from around the world. However, according to data from 2022, France, Germany, and the United Kingdom together represented nearly 35 million travelers to the country, approximately half of the total international tourism for the year.
The typical tourist profile is one who wants to experience the culinary diversity, historical sites, and beautiful beaches of Spain. Forecasts indicate that the regions that will receive the most tourists this year are: Madrid, Catalonia, the Balearic Islands, Andalusia, the Canary Islands, and Valencia.
This increasing demand for tourism-related services creates various circumstances that indicate a fertile ground for attracting international investment. Factors such as the significant contribution of the sector to economic growth and the Spanish GDP, the strategic location of the most popular tourist regions, and government initiatives that often support tourism through policies and incentives, can attract foreign investment. This investment can take the form of infrastructure investment, advertising campaigns, or the promotion of sustainable tourism.
These factors, along with the positive tourism outlook for this summer, are likely to result in an increase in foreign investment, including from international hotel chains – many of which are already present in the country – as well as increased activity by airlines and online travel platforms.
Low-cost airlines may add new routes or increase the frequency of existing ones. In this regard, it is not ruled out that new partnerships could be established with Spanish airports and industry associations to promote travel packages and increase the number of passengers. It is also foreseeable that infrastructure investment will be considered, so that airports can cope with the increase in passenger traffic, which in turn will attract more airline activity.
On the other hand, the travel agency sector will improve its offer, with more personalized and varied packages that include excursions, cultural experiences, and adventure activities. There is expected to be increased cooperation between agencies and local Spanish companies, in order to offer exclusive deals and discounts, making Spain an even more attractive destination. There will also be a further push towards digital transformation in the sector. The growth of tourism may push travel agencies to expand their online presence and booking platforms, making it easier for international travelers to plan their trips.
In the same direction, online accommodation booking platforms will experience a significant level of activity and it is not unlikely that there could be an expansion into traditionally less touristy areas, promoting a wider range of destinations and distributing the economic benefits of tourism more evenly.
The outlook for Spanish listed tourism companies is positive: an increase in occupancy, revenue, and market value is expected. Unlisted companies will also benefit significantly. Overall, the economic and investor sentiment towards these companies is optimistic, driven by the projected growth of tourism in Spain.
Spain’s position as the world’s top tourist destination is expected to further strengthen the brand image and reputation of its companies. High tourist satisfaction increases the perception of the quality and reliability of Spanish companies.
Source: MiMub in Spanish
