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How much more expensive will holidays in Spain be this summer?

Whether it be hotel prices rising or shortages in the aviation sector making flights more expensive, a summer vacation in Spain this year is likely to cost more than last year.

How much more expensive will holidays in Spain be this summer?
A tourist couple sunbathes on Palma Beach in Palma de Mallorca. Photo: JAIME REINA/AFP.

With lingering inflation, drought conditions, rising rents and building social tension surrounding the impact of mass tourism on Spanish society, summer 2024 could be an eventful one in Spain for a number of reasons.

It will probably also be more expensive than it was in the past, especially if you’re staying in a hotel or tourist apartment.

This follows a bumper Easter period that saw high occupancy and price rises across the country, and if forecasts and industry experts are anything to go by, it’s a trend that will continue into the summer season.

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

Hotel prices March increased by 10 percent compared to the same period in 2023, and have now experienced 34 consecutive months of price increases.

The average hotel room in Spain during March cost €109.2 per night, according to Hotel Tourism Situation data published by Spain’s National Statistics Institute (INE).

How much more expensive will flights to Spain be this summer?

Firstly, flights. Aviation industry experts suggest that a perfect storm of conditions could cause the price of flights to increase for summer 2024. A shortage of commercial planes, caused mainly by a combination of problems on Boeing’s production line and Airbus having difficulties with engine manufacturers, will likely drive up prices around the world.

These “are factors that don’t make it easy for prices to fall,” according to Pere Suau, professor of Economics and Business Studies at the Universitat Oberta de Catalunya, who admitted that “it is difficult to measure the extent to which” they will go up. The key, in Suau’s opinion, is to see how demand will be affected by price rises. “As of today prices are rising, but demand is tolerating it, demand continues to grow,” he adds.

Reports in the Spanish media suggest that prices on budget airlines like Ryanair could rise by around 10 percent.

READ ALSO: EasyJet opens Spanish base in Alicante with ten new routes

How much more expensive will hotels in Spain be this summer?

So, flights will likely be more expensive this year. But what about hotels?

It’s difficult to say exactly by how much hotel prices will have risen by summer, but most estimates put it at somewhere in the 8-12 percent range, depending on factors such as location, occupancy, type of accommodation (ie. is it luxury or budget) and length of stay.

However, despite that, most experts seem to think the price rises will be slightly less than the 2023-23 year-on-year increases, when average hotel room costs shot up by 16.5 percent, according to statistics from SRT and Cushman & Wakefield.

Albert Grau, partner at Cushman & Wakefield’s Hospitality department in Spain, told El Periódico de España that: ‘We expect there to continue to be growth in prices… although it will be more moderate, in single digits, compared to the large increase in the last year.”

Spanish news outlet La Sexta reports that hotel rooms in the summer will be on average 11 percent more than last year, according to figures from INE and Travelgate.

Forecasts by American Express Global Business Travel (Amex GBT) put Barcelona, long a popular tourist destination, among European cities where a significant increase in hotel prices is expected, with a projected rise of 9 percent. Other Spanish cities, such as Bilbao and Valencia, are forecast to see price jumps of around 8.5 percent.

In Andalusia, hotel sector insiders in Andalusia are expecting a 7 percent increase overall this summer, according to Trinitario Bertore, director of Hotel Plaza Nueva in Granada, who spoke to La Sexta. Bertore said a night’s stay in a hotel in Andalusia can now cost up to €210, a 7 percent rise compared to last summer.

José Luis Contreras, managing director of Apartamentos Valencia Costera, said prices in tourist flats in Valencia will also rise by around 7 percent and even reach an eye-watering €350 per night in the high season.

Both Bertore and Contreras said that there’s no need to lower prices because demand is increasing, despite the per night rate increases.

It seems clear that accommodation will likely be a more expensive for summer 2024 in Spain than it was last year, though the year-on-year rise will slow slightly. Most forecasts put the average expected hotel price rises at roughly 10-11 percent overall.

By exactly how much will depend on several factors: where you’re staying, and whether it’s a traditional tourist spot such as parts of Andalusia, Alicante, Valencia or the Canary and Balearic Islands; whether it’s a hotel or apartment; the quality of the accommodation; how long you’re staying; how far in advance you book; when exactly in the summer season you’ll visit Spain.

Aviation industry uncertainty also means that flights will become more expensive, so both travel and accommodation are likely to be more expensive in Spain this summer.

Tourism makes up a significant portion of Spain’s GDP. Predicted tourism earnings for 2024 are expected to bring in €202.65 billion, an 8.6 percent increase on 2023, a record year.

However, growing anti-mass tourism sentiment has been bubbling in Spanish society for some time now, with protests in various cities around the country decrying the impact, among other things, of Spain’s tourism model on the local housing market.

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TOURISM

FACT CHECK: No, Spain’s Balearics haven’t banned tourists from drinking alcohol

Over the last few days, there have been a slew of sensationalist headlines mainly from UK media stating that Mallorca and Ibiza have banned alcohol.

FACT CHECK: No, Spain's Balearics haven't banned tourists from drinking alcohol

Anyone having read the news about Spain in the UK over the past few days would be forgiven for thinking that drinking alcohol had been completely banned on the ‘party’ islands of Mallorca and Ibiza, but that’s not exactly the case. 

GB News went with ‘‘I cannot believe this!’ Britons fume at ‘tough’ new alcohol restrictions in popular parts of Spain’, while the Daily Mail wrote: ‘A kick in the Balearics for boozy Brits’.

Euronews reported ‘No more ‘sun, sex and sangria’ tourism in Ibiza and Mallorca under new alcohol laws’ and The Drinks Business simply said ‘Balearics bring in booze ban’.

It’s easy to understand why holidaymakers are confused and there has already been quite a lot of backlash, particularly from Brits.

Most of these articles concede further down that the truth is that the islands have only updated and toughened up laws on drinking in the street, and have also put a stop to shops selling alcohol late at night.

All this is in a bid to try and curb anti-social behaviour which many locals have been protesting against recently.

In fact, the rules don’t even apply to the whole of the Balearics or even the whole of Mallorca and Ibiza, they only apply to three resorts in Mallorca – Palma, Calvià and Llucmajor and one in Ibiza – Sant Antoni de Portmany.

As well as a ban on drinking in the streets in these areas, shops in these locations will also be forced to close between 9.30pm and 8am.

It’s not only that they will be banned from selling alcohol between these times, like many reported, but that they will have to close completely. 

The Governing Council of the Balearic Islands approved the modification of the Decree Law 1/2020 at the proposal of the Minister for Tourism, Culture and Sports, which regulates ‘excess tourism’.

The changes aim to promote responsible tourism and the improvement in the quality of tourist areas.

The ban also extends to one nautical mile or 1.85km off the coast, in a bid to put a stop to party boats from coming in too close to shore or picking up extra passengers.

This doesn’t mean that you can’t drink at all at night. Bars, clubs and restaurants in these resorts will still be serving booze late into the night, you just can’t walk down the street with your bottle of beer.

Anyone found breaking the rules will be subject to fines between €500 to €1,500.

The government of the Balearics also approved an annual spending of €16 million from tourist taxes which will be allocated for the modernisation and improvement of these areas and enforcing the ban.

The new laws came into effect on May 11th and the government has confirmed that they will be in effect until at least December 2027. 

What has changed from before?

The new decree reinforces laws that were brought in in 2020 banning alcohol offers such as two-for-one drinks, happy hours and bar crawls in these areas. These will also be extended until 2027. 

The prohibition of alcohol sales between 9:30pm and 8am was also already in place, but now the shops will be forced to close entirely.

The main change that will affect holidaymakers will be the ban on drinking alcohol on the streets.

Nothing new

But this is nothing new when it comes to Spain. Aragón, the Canary Islands, Cantabria, Castilla y León, Castilla-La Mancha, Catalonia, Valencia, Extremadura, Madrid and La Rioja all have some type of ban on what is known in Spain as botellón, essentially drinking alcohol with friends in a public place (street, square etc).

The Balearics are simply catching up to a large majority of the country, where this is already the norm.

All of this comes on the tail of mass complaints from the locals, particularly in Ibiza, where residents are planning to take to the streets at 8pm on May 24th to call on authorities to act on the impact tourism is having on locals’ living standards.  

It started with calls online to “imitate the protests that took place in the Canaries” in April, with many locals feeling that the issues that Ibiza faces are even worse than those of the Atlantic Archipelago. 

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