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TOURISM

Spain’s tourism sector hopes to turn page on gloomy 2021

Tourism activity remained muted in Spain last year, well below its pre-pandemic levels, industry experts said Thursday, predicting a stronger recovery this year once the Omicron wave passes.

British tourists are disguised as they take part in
British tourists are disguised as they take part in "Fancy Dress Party" event in the seaside resort of Benidorm on the eastern coast of Spain, on November 18, 2021. (Photo by JOSE JORDAN / AFP)

In total, tourism generated 88.5 billion euros in Spain in 2021, an increase of 36 billion euros on the figure for 2020, but some 43 percent lower than in 2019, the Exceltur tourism association said.

Although tourism improved following the catastrophic levels of 2020 when the pandemic first hit, the recovery was “partial” and “full of ups and downs”, Exceltur vice-president Jose Luis Zoreda told a news conference.

Health restrictions early on in 2021 meant tourism activity remained “paralysed” until May, and following a rebound over the summer it tailed off again at the end of November with the rapid spread of the Omicron variant.

International tourism was worst hit, with only 31 million people visiting Spain, according to Exceltur, a figure far from the government’s aim of attracting 45 million visitors — or around half of the arrivals seen in 2019.

Before the pandemic, Spain was the world’s second most popular tourist destination after France, but it has suffered particularly from the drop in British travellers who had previously been the largest national group of visitors.

“Those who suffered the most were travel agencies, airlines and urban hotels” in places like Barcelona and Madrid, said Zoreda.

But Exceltur said it saw the situation improving this year with the passing of the Omicron wave that has slowed the sector’s recovery.

Oscar Perelli, head of research for Exceltur said the industry would likely experience “a very complex first quarter” with sales a third lower than 2019 levels, but was expecting to see “a marked upturn from April onwards”.

Exceltur said it expected the sector to generate 135 billion euros this year, or 10.5 percent of gross domestic product (GDP), compared with 5.5 percent in 2020 and 7.4 percent last year.

Before the pandemic, tourism represented 12.4 percent of the Spanish economy, official statistics showed.

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TOURISM

Ecotax and cruise bans: Why Spain’s mass tourism measures haven’t worked

Regions and cities around Spain have tried several ways to slow down the negative effects of mass tourism on local communities, largely without any luck and not addressing the major problem underpinning it.

Ecotax and cruise bans: Why Spain's mass tourism measures haven't worked

The Spanish tourism sector continues to grow, but so does opposition to it.

Increasingly in Spain in recent years, anti-tourist sentiment (sometimes veering into anti-digital nomad sentiment) is on the rise, and much of it is born from frustrations about mass tourism and gentrification and their impact on Spaniards.

READ ALSO: Why does hatred of tourists in Spain appear to be on the rise?

In 2000, 46.4 million tourists visited Spain. In those days, travellers (often from Northern Europe) flocked to the coasts to stay in the hotel blocks right on the beach. The classic Spanish holiday, if you will.

But things are changing. By 2023, that figure had nearly doubled to 85.3 million.

Yet during those 23 years hotel accommodation grew by just 7 percent. This statistic, cited by Juan Molas, President of Spain’s Tourist Board and cited in Spanish daily El País, reveals a lot about the Spanish tourism sector and why efforts to try and combat mass tourism (or its negative effects, at least) have failed so far.

Molas’ statistic begs an obvious question: where do the rest of those tourists now stay, if not in traditional hotels?

Increasingly, in short-term accommodation such as tourist rentals and, in recent years, Airbnbs.

READ MORE: ‘Get the f*ck out of here’ – Málaga plastered with anti-tourism stickers

There have been regular protests against mass tourism around Spain in recent months, notably in places like the Canary Islands and Málaga.

Anti-tourist graffiti has appeared in places such as Barcelona, Valencia, Granada, the Canary and Balearic Islands, places that face the brunt of mass tourism in Spain. Locals complain that the proliferation of tourist rental accommodation depletes the affordable housing stock, inflates the local property market, and prices them out of their own neighbourhoods.

Often, these sorts of tourist rental accommodations are unlicensed and illegal. In Madrid, for example, there are tens of thousands of tourist apartments in Madrid available through platforms such as Airbnb and Booking, and yet recent findings show that barely five percent have a municipal tourist licence in order to operate legally. 

“Neither the central administration, nor the regions, nor the town councils have done their homework on the illegal [accommodation] offer, which is the most important scourge of tourism in Spain,” Molas says.

Though the problem seems obvious to many, including experts like Molas, some regions of Spain have focused on other ways to try and limit mass tourism… and they haven’t really worked so far.

READ ALSO:

Tourist tax

Tourist taxes made big news in recent weeks when Venice began charging tourists on day trips to visit the tourist hotspot.

In Spain, Catalonia and the Balearic Islands are the only two regions that have implemented tourist taxes so far, although not with the express aim of reducing the number of visitors.

Rather, Catalonia taxes overnight stays while the Balearic Islands taxes possible environmental damage. Visitor arrivals have continued to rise despite the taxes.

In the thirteen years since the tax was introduced in Barcelona, tourist numbers have risen from 14.5 million to 18 million. Importantly, a moratorium on hotel construction has been in place in the Catalan capital since 2017, which has led to an exponential growth in tourist rental accommodation in the city.

In the case of the Balearic Islands, the annual number of tourist arrivals has increased from 13 to 14 million in the six years in which the so-called ‘ecotax’ has been in force on the islands.

Limiting cruise ships

Coastal and island resorts in Spain have also tried to combat mass tourism by limiting the number of cruise ships allowed to dock there.

In 2022, Palma de Mallorca became the first destination in Spain and the second in Europe, after Dubrovnik in Croatia, to make an agreement with major cruise ship companies to establish a limit of three cruise ships per day, and specified that only one of them could bring more than 5,000 passengers ashore.

In places like Mallorca but also in Barcelona, enormous cruise ships previously docked and released thousands of tourists into the city at once.

But once again, like with the tourist taxes introduced, a limit on cruise ship numbers, although welcome, misses the point — cruise ship customers sleep on the ship, not in the real problem underpinning Spain’s mass tourism model: accommodation.

Tourist accommodation

Varying legislation restricting Airbnb-style rentals has already been introduced in recent years in cities such as Valencia, Palma, Seville, Tarifa, Madrid, Barcelona, and San Sebastián, with varying degrees of success. 

The number of short-term rental accommodation has exploded in Spain. They are particularly popular with remote workers and among digital nomads with the foreign spending power to price out locals. Recent data shows that in the old town of Seville, over half of residential homes are used for tourism. In the area of ​​Madrid’s Puerta del Sol, 28.3 percent are tourist apartments, while the figure stands at 18.3  percent in the centre of Valencia.  

READ MORE: How Spain’s Asturias region plans to limit short-term holiday lets

Tourist taxes and limits on cruise ship numbers are welcome. But they appear to be doing little to tackle the true underlying problem with Spain’s mass tourism model.

For now, measures are being rolled out largely on a regional level, but it may require the national government to step in and legislate, as it did when it scrapped the Golden Visa earlier this year, although again the effectiveness of this measure has also been questioned. 

READ MORE: Is Spain’s decision to axe golden visa about housing or politics?

Increasing the social housing stock more generally would also go some way to alleviate the pressure on Spaniards struggling to pay rent or even find a home.

Tourism is a double edged sword in Spain. The tourism sector has long made up a significant proportion of Spanish GDP and provided employment for locals, but the model it currently has is outdated, it inflates property markets, angers Spaniards, and creates tension between tourists and locals.

In 2023, international visitors spent €108 billion in Spain, 17 percent more than in 2019. Spanish travel industry association Exceltur forecasts that in 2024 it will surpass €200 billion for the first time.

READ ALSO: ‘The island can’t take it anymore’ – Why Tenerife is rejecting mass tourism

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