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TOURISM

€8.7 billion lost: Can Spain’s tourism sector survive latest blow?

As one of the world's top tourist destinations, Spain was hoping to salvage the summer by billing itself as a safe haven from the pandemic but with infections surging, all bets are off.

€8.7 billion lost: Can Spain's tourism sector survive latest blow?
Tourists sunbathe at Palmanova Beach on the Island of Mallorca on July 27, 2020. AFP

Britain's decision late Saturday to impose quarantine on all travellers coming from Spain represents a huge setback — British tourists are the largest national group of visitors, with 18 million of them taking a Spanish 
holiday in 2019. 

“It's a very tough blow” given that the tourist sector “had hoped to be able to turn things around in August,” Ximo Puig, the Valencian regional president told Cadena Ser radio. 

For some resorts like Benidorm, British tourists constitute 40 percent of visitors.

The announcement was terrible news for the embattled sector, which had hoped the summer months would help it claw back some of the colossal losses incurred through months of lockdown.

“We'd had a good feeling about the coming weeks with reservations picking up and although we were far from the norm for this time of year, we were hoping things would get back to normal by September or October,” the HOSBEC regional hotels association said.

“There have already been cancellations and more are expected. Nobody is going to come here for a week's holiday and then spend 14 days shut away when they get back home,” said Emilio Gallego, secretary general of Spain's hotels association. 

Tourists walk past closed restaurants near Magaluf Beach on the Island of Mallorca on July 27, 2020. AFP

The Exceltur tourism association estimates Britain's quarantine move could cost up to 8.7 billion euros in August and September, a major hit to a sector whose turnover had already been expected to halve this year.

Conscious of the impact on a sector that accounts for 12 percent of GDP and 13 percent of employment, Madrid has sought to secure an exemption for the Canary Islands or the Balearic Isles. 

Although TUI, Britain's biggest tour operator, cancelled all holidays to mainland Spain, it has said it will continue holidays to the Canaries or Balearics where COVID-19 cases are markedly lower.

“I don't think that we have uncontrolled transmission of the virus in Spain right now,” said Fernando Simon, the health ministry's emergencies director, indicating there were areas “where it is hardly circulating” such as the 
Balearic and Canary Islands.

From a health perspective, the quarantine “benefits us in a certain way because it discourages people from travelling from the United Kingdom” where the virus is also still circulating, he said.

'A safe destination' 

Spain worked hard to burnish its image as a safe destination, with resorts implementing widespread measures, among them social distancing on the sand and around pools, and safe spacing within bars and restaurants.

But industry insiders have watched with concern as new infections have risen, with the figure tripling in two weeks, government figures show.

Over the past 14 days, Spain has seen 40 new cases per 100,000 inhabitants, compared with 15 in Britain and France and eight in Germany, according to an AFP calculation based on official figures.

British tourists wait to check in for a flight to London at the airport in Palma de Mallorca on July 27, 2020.AFP

In terms of deaths, however, Spain has recorded just 26 in the past fortnight, far behind Britain's 816.

Michael Ryan, the World Health Organization's emergencies director, told reporters the situation in Spain was “nowhere close” to what it was before and that Madrid had developed a “very sensitive surveillance system”.

“It will take a number of days or weeks for us to see what is the future in Spain, but we trust that with this open approach, with this sensitive surveillance, with the sustained testing… we will see these clusters come under control in due course.”

The situation varies hugely between regions, with Aragon and Catalonia in the northeast counting the highest number of new cases, notably in agricultural areas, while in Andalusia and Valencia, new infections were far fewer.

Although France on Friday advised against travelling to Catalonia, regional president Quim Torra insisted Monday that the Costa Brava and the Costa Dorada “remain unaffected and people can travel there safely”.

The situation in metropolitan Barcelona and Lerida, however, remains “critical”, with residents ordered to stay at home.

Denouncing the situation as “unjust.. and totally illogical”, the Spanish Confederation of Hotels and Tourist Accommodation (CEHAT) insisted its establishments had “the strictest protocols in Europe”.

It also asked that tourists be tested before travelling and again before going home to avoid the need for quarantine.

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TRAVEL NEWS

Why are fewer British tourists visiting Spain this year?

Almost 800,000 fewer UK holidaymakers have visited Spain in 2023 when compared to 2019. What’s behind this big drop?

Why are fewer British tourists visiting Spain this year?

Spain welcomed 12.2 million UK tourists between January and July 2023, 6 percent less when compared to the same period in 2019, according to data released on Monday by Spanish tourism association Turespaña.

This represents a decrease of 793,260 British holidaymakers for Spain so far this year.

Conversely, the number of Italian (+8 percent), Irish (+15.3 percent), Portuguese (+24.8 percent), Dutch (+4 percent) and French tourists (+5 percent) visiting España in 2023 are all above the rates in 2019, the last pre-pandemic year. 

German holidaymakers are together with their British counterparts the two main nationalities showing less interest in coming to Spanish shores.

Britons still represent the biggest tourist group that comes to Spain, but it’s undergoing a slump, with another recent study by Caixabank Research suggesting numbers fell particularly in June 2023 (-12.5 percent of the usual rate). 

READ ALSO: Spain fully booked for summer despite most expensive holiday prices ever

So are some Britons falling out of love with Spain? Are there clear reasons why a holiday on the Spanish coast is on fewer British holiday itineraries?

According to Caixabank Research’s report, the main reasons are “the poor macroeconomic performance of the United Kingdom, the sharp rise in rates and the weakness of the pound”.

This is evidenced in the results of a survey by British market research company Savanta, which found that one in six Britons are not going on a summer holiday this year due to the UK’s cost-of-living crisis.

Practically everything, everywhere has become more expensive, and that includes holidays in Spain: hotel stays are up 44 percent, eating out is 13 percent pricier, and flights are 40 percent more on average. 

READ ALSO: How much more expensive is it to holiday in Spain this summer?

Caixabank stressed that another reason for the drop in British holidaymakers heading to Spain is that those who can afford a holiday abroad are choosing “more competitive markets” such as Turkey, Greece and Portugal. 

And there’s no doubt that the insufferably hot summer that Spain is having, with four heatwaves so far, has also dissuaded many holidaymakers from Blighty from overcooking in the Spanish sun. 

With headlines such as “This area of Spain could become too hot for tourists” or “tourists say it’s too hot to see any sights” featuring in the UK press, budding British holidaymakers are all too aware of the suffocating weather conditions Spain and other Mediterranean countries are enduring. 

Other UK outlets have urged travellers to try out the cooler Spanish north rather than the usual piping hot Costa Blanca and Costa del Sol destinations.

Another UK poll by InsureandGo found that 71 percent of the 2,000+ British respondents thought that parts of Europe such as Spain, Greece and Turkey will be too hot to visit over summer by 2027.

There’s further concern that the introduction in 2024 of the new (and delayed) ETIAS visa for non-EU visitors, which of course now also applies to UK nationals, could further compel British tourists to choose countries to holiday in rather than Spain.

READ MORE: Will British tourists need to pay for a visa waiver to enter Spain?

However, a drop in the number of British holidaymakers may not be all that bad for Spain, even though they did spend over €17 billion on their Spanish vacations in 2022. 

Towns, cities and islands across the country have been grappling with the problem of overtourism and the consequences it has on everything from quality of life for locals to rent prices. 

READ ALSO: ‘Beach closed’ – Fake signs put up in Spain’s Mallorca to dissuade tourists

The overcrowded nature of Spain’s beaches and most beautiful holiday hotspots appears to be one of the reasons why Germans are visiting Spain in far fewer numbers. A recent report in the country’s most read magazine Stern asked “if the dream is over” in their beloved Mallorca.

Spanish authorities are also seeking to overhaul the cheaper holiday package-driven model that dominates many resorts, which includes moving away from the boozy antics of young British and other European revellers.

Fewer tourists who spend more are what Spain is theoretically now looking for, and the rise in American, Japanese and European tourists other than Brits signify less of a dependence on the British market, one which tends to maintain the country’s tourism status quo for better or for worse.

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