spanish tourism economy

Travel, Tourism & Hospitality

Tourism sector in Spain - statistics & facts

Who visits spain the most, how popular is domestic tourism in spain, key insights.

Detailed statistics

Quarterly travel and tourism balance of payments in Spain 2018-2022

Tourism premises in Spain 2015-2021

Tourism employment in Spain 2020-2021

Editor’s Picks Current statistics on this topic

Current statistics on this topic.

Inbound tourism volume in Spain 2023, by origin

Tourism contribution to Spanish GDP 2006-2023

Destinations

Inbound tourism volume in Spain 2023, by region of destination

Related topics

Tourism in spain.

• Inbound tourism in Spain
• National tourism in Spain
• Tourism in Barcelona
• Travel and tourism in the Canary Islands

Tourism in Europe

• Travel and tourism in Europe
• Backpacking in Europe
• Wine tourism in European countries
• Cruise industry in Europe
• Overtourism in European destinations

Travel trends

• Subscription model in the travel industry
• Mobile travel trends
• Travel and tourism in the metaverse
• Artificial intelligence (AI) use in travel and tourism

Recommended statistics

• Premium Statistic Leading European countries in the Travel & Tourism Development Index 2021
• Premium Statistic Tourism contribution to Spanish GDP 2006-2023
• Premium Statistic Tourism sector as share of GDP in Spain 2010-2021
• Premium Statistic Monthly growth rate of tourism GDP in Spain 2022
• Premium Statistic Tourism employment in Spain 2015-2021
• Premium Statistic Tourism employment in Spain Q4 2022, by industry

Leading European countries in the Travel & Tourism Development Index 2021

Leading European countries in the Travel & Tourism Development Index (TTDI) in 2021

Contribution of the tourism sector to the gross domestic product in Spain from 2006 to 2022, with a forecast for 2023 (in billion euros)

Tourism sector as share of GDP in Spain 2010-2021

Contribution of tourism to gross domestic product in Spain from 2010 to 2021

Monthly growth rate of tourism GDP in Spain 2022

Percentage change in the contribution of travel and tourism to GDP in Spain from January to December 2022

Tourism employment in Spain 2015-2021

Number of employees in the tourism sector in Spain from 2015 to 2021 (in 1,000s)

Tourism employment in Spain Q4 2022, by industry

Number of people working in the tourism sector in Spain in 4th quarter 2022, by industry (in 1,000s)

Tourism volume and expenditures

• Premium Statistic Inbound visitors in Spain 2000-2023
• Premium Statistic Inbound tourism volume in Spain 2023, by origin
• Premium Statistic International tourism spending in Spain 2012-2022
• Premium Statistic Domestic trips in Spain 2015-2022
• Premium Statistic Domestic trips in Spain 2022, by destination
• Premium Statistic Domestic tourism spending in Spain 2015-2022
• Basic Statistic Share of travel and tourism spending in Spain 2022, by traveler origin

Inbound visitors in Spain 2000-2023

Number of international visitors in Spain from 2000 to 2023 (in millions)

Number of international tourists in Spain in 2023, by country of residence (in 1,000s)

International tourism spending in Spain 2012-2022

Expenditure of international tourists in Spain from 2012 to 2022 (in billion euros)

Domestic trips in Spain 2015-2022

Number of domestic trips in Spain in 2015 to 2022 (in millions)

Domestic trips in Spain 2022, by destination

Number of domestic trips in Spain in 2022, by autonomous community of destination (in millions)

Domestic tourism spending in Spain 2015-2022

Expenditure of domestic tourists in Spain from 2015 to 2022 (in billion euros)

Share of travel and tourism spending in Spain 2022, by traveler origin

Distribution of expenditure by tourists in Spain in 2022, by main origin

• Premium Statistic Inbound tourism volume in Spain 2023, by travel reason
• Premium Statistic Domestic trips in Spain 2022, by travel reason
• Basic Statistic Share of travel and tourism spending in Spain 2022, by purpose
• Premium Statistic Inbound trips for cultural purposes to Spain 2010-2022
• Premium Statistic Number of enotourists in Spain 2008-2022
• Premium Statistic Number of skiers and snowboarders in Spain 2010-2022
• Premium Statistic Pilgrims on the Way of Saint James 2011-2022

Inbound tourism volume in Spain 2023, by travel reason

Number of international tourists in Spain in 2023, by travel purpose (in 1,000s)

Domestic trips in Spain 2022, by travel reason

Number of domestic trips in Spain in 2022, by travel purpose (in millions)

Share of travel and tourism spending in Spain 2022, by purpose

Distribution of expenditure by tourists in Spain in 2022, by main travel purpose

Inbound trips for cultural purposes to Spain 2010-2022

Number of trips for cultural reasons made by international tourists to Spain from 2010 to 2022 (in 1,000s)

Number of enotourists in Spain 2008-2022

Number of visitors to wineries and wine museums in Spain from 2008 to 2022 (in 1,000s)

Number of skiers and snowboarders in Spain 2010-2022

Number of visitors to ski resorts in Spain from 2010/2011 to 2021/2022 (in 1,000s)

Pilgrims on the Way of Saint James 2011-2022

Number of pilgrims who traveled to Santiago de Compostela, Spain from 2011 to 2022

• Premium Statistic Tourism premises in Spain 2015-2021
• Premium Statistic Share of tourism companies in Spain 2021, by size
• Premium Statistic Main hotel groups in Spain FY2021, by sales revenue
• Premium Statistic Main passenger airlines in Spain 2022
• Premium Statistic Main travel agencies in Spain FY2021, by sales revenue
• Premium Statistic Main restaurants and food stall companies in Spain FY2021, by sales revenue
• Premium Statistic Ecotourism businesses' average revenue in Spain 2022, by type

Number of establishments in the tourism sector in Spain from 2015 to 2021

Share of tourism companies in Spain 2021, by size

Distribution of businesses in the tourism sector in Spain in 2021, by size

Main hotel groups in Spain FY2021, by sales revenue

Leading hotel companies in Spain in FY2021, based on sales revenue (in million euros)

Main passenger airlines in Spain 2022

Leading airlines in Spain in 2022, based on number of passengers (in millions)

Main travel agencies in Spain FY2021, by sales revenue

Leading travel agencies in Spain in FY2021, based on sales revenue (in million euros)

Main restaurants and food stall companies in Spain FY2021, by sales revenue

Leading restaurant and food stall companies in Spain in FY2021, based on sales revenue (in million euros)

Ecotourism businesses' average revenue in Spain 2022, by type

Average revenue of ecotourism establishments in Spain in 2022, by type (in 1,000 euros)

Main destinations

• Premium Statistic Main coastal destinations in Spain 2022, by number of hotel guests
• Premium Statistic Most visited cities in Spain 2022
• Premium Statistic Attendance to Spanish National Heritage sites 2022
• Premium Statistic Attendance to Spanish national parks 2022
• Premium Statistic Cruise ship calls at Spanish ports 2022, by authority
• Premium Statistic Enotourism destination areas in Spain 2022, by region

Main coastal destinations in Spain 2022, by number of hotel guests

Leading beach destinations in Spain in 2022, based on number of overnight tourists in hotels (in 1,000s)

Most visited cities in Spain 2022

Leading city destinations in Spain in 2022, by number of tourists (in 1,000s)

Attendance to Spanish National Heritage sites 2022

Number of visitors to National Heritage sites in Spain in 2022 (in 1,000s)

Attendance to Spanish national parks 2022

Number of visitors to national parks in Spain in 2022 (in 1,000s)

Cruise ship calls at Spanish ports 2022, by authority

Number of cruise vessels calling at ports in Spain in 2022, by port authority

Enotourism destination areas in Spain 2022, by region

Number of Wine Routes in Spain in 2022, by autonomous community

Online travel market

• Premium Statistic Quarterly online revenue of accommodation businesses in Spain 2014-2022
• Premium Statistic Quarterly online revenue of travel agencies & tours operators in Spain 2014-2022
• Premium Statistic Airbnb revenue in Spain 2015-2020
• Premium Statistic Willingness to purchase tourism services online in Spain 2019-2022
• Premium Statistic Average spend on tourism services booked online in Spain 2018-2022
• Premium Statistic Hotel / private accommodation online bookings by brand in Spain 2023

Quarterly online revenue of accommodation businesses in Spain 2014-2022

E-commerce revenue of hotels and similar establishments in Spain from 1st quarter 2014 to 4th quarter 2022 (in million euros)

Quarterly online revenue of travel agencies & tours operators in Spain 2014-2022

E-commerce revenue of travel agencies and tour operators in Spain from 1st quarter 2014 to 4th quarter 2022 (in million euros)

Airbnb revenue in Spain 2015-2020

Revenue of Airbnb in Spain in 2015, 2019, and 2020 (in million euros)

Willingness to purchase tourism services online in Spain 2019-2022

Share of individuals who intended to buy travel products and services online in Spain from 2019 to 2022

Average spend on tourism services booked online in Spain 2018-2022

Average spend on travel products and services bought online in Spain from 2018 to 2022 (in euros)

Hotel / private accommodation online bookings by brand in Spain 2023

Hotel / private accommodation online bookings by brand in Spain as of December 2023

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Information on Spain’s tourism industry

A selection of the most significant Spanish tourism data for consultation and study.

A selection of current posts on Spanish tourist information

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• Cruise lines: its passenger figures in 2023 and its changes and trends over the last year and since the pandemic
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Spanish Tourism Satellite Account. Latest data

Latest press releases.

Tourism activity reached 155,946 million euros in 2022, 11.6% of GDP, which was 3.9 points more than in 2021. The characteristic branches of tourism generated more than 1.9 million jobs, 9.3% of total employment.

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• Nota informativa. Revisión Estadística 2024 de las Cuentas Nacionales
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Most popular tables

Did you know....

The Spanish Tourism Satellite Account (STSA) is a summary statistic composed of a set of accounts and tables, based on the methodological principles of national accounts and presenting the different economic parameters of tourism in Spain, for a given reference date. The current base is 2010.

It essentially consists of three types of components:

• - Supply accounts and tables, in which an attempt is made to characterise the production and cost structures of tourism companies.
• - Demand tables which intend to characterise, from an economic point of view, the different types of tourists, national tourism compared with international, the types of goods and services demanded, etc.
• - Tables that interrelate supply and demand, which facilitates obtaining some integrated measurements of the contribution of tourism to the economy via variables such as GDP, production or employment.

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Invest in Spain news

Tourism consolidated its recovery in Spain in 2023

It reached 12.8% of Gross Domestic Product, boosted economic growth and created more and better jobs

Tourism consolidated its recovery in Spain in 2023 according to data collected by Exceltur, an association that brings together the major players in the industry in Spain. Its contribution to the economy amounted to 12.8% of Gross Domestic Product after a very positive fourth quarter. In fact, it was the best year since statistics have been recorded, with the business generating 18.66 billion euros.

This figure boosted tourism to become the main driver of economic growth last year. According to data published by Exceltur, tourism Gross Domestic Product grew by 13.1%, which translates into 70.8% of Spanish economic growth, which the Bank of Spain puts at 2.4%.

Job creation The better performance of the industry and the good economic results also served to create more and better jobs. Of all the jobs created in 2023, 17% were in companies in the tourism industry. This was 95,224 more jobs than in 2022. In addition, the temporary employment rate fell to 8% and wage increases were the highest in the Spanish economy, averaging 4.4%.

On the other hand, Exceltur believes that the growth of tourism demand in 2023 was in line with the industry's new strategy of improving the socio-economic contribution made by tourists without increasing pressure on mass influx destinations. Growth was strongest in hotel accommodation, up 20.3% compared to 2019; leisure facilities (17.9%), travel agencies (13.0%) and transport companies (16.9%) also grew by double digits, while car rental only grew by 7% due to lower prices in a context of increased access to fleets.

Cost increase Costs partly held back the industry’s growth, as they also experienced growth compared to 2022, especially financial costs (18.9%) and labour costs (7.3%). Supply costs increased by 9.6%, but Exceltur assesses this positively, detecting a slowdown compared to the 29.1% increase in the previous year. Another contrast was the cost of energy, the only cost that decreased (2.8%), while the previous year it had grown by 25.2%.

The number of holiday homes also increased last year, with 15,000 new accommodation units in the 25 main Spanish cities. In general, all Spanish tourist destinations grew, and Exceltur estimates that 2024 will be the year in which the industry's contribution to Gross Domestic Product will break the 200 billion euro barrier. This figure would represent a growth of 8.6% if estimated on current prices in 2023, and 4.6% if the price effect is removed. Thus, tourism will again increase its share in Gross Domestic Product to 13.4%.

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Next stop for Spanish tourism excellence: Sustainability

Tourism is vital to Spain. The country’s natural attractions and cultural assets draw crowds from around the world—making many of its communities reliant on tourism. Pre-pandemic, Spain was the second-largest tourism destination in the world, drawing 84 million visitors in 2019 who brought over €92 billion in revenue. 1 “Spain: Economic and infrastructural situation,” Climate ADAPT, Climate ADAPT website, updated March 15, 2021; “Satellite account of tourism in Spain,” INE, January 7, 2022. Travel and tourism accounted for around 14 percent of Spain’s total GDP and provided one in eight jobs. In some communities, tourism contributed to over 20 percent of all economic activity . While these figures plummeted during COVID-19, travel and tourism is recovering and Spain remains dependent on success in tourism.

Spain’s tourism sector now faces new challenges. Fears of a global recession, and geo-political uncertainty, could put pressure on tourism. And as travel resumes in an era of high inflation, Spain will likely face stiff competition from several destinations that also offer sunshine and coastal vacations at similar, or lower, prices—Egypt, Greece, and Turkey, for example.

The sector also faces physical and economic threats due to climate change. The Mediterranean basin is getting warmer: the number of days above 37°C in southern Spain is expected to double by 2050 and rising temperatures increase the risk of drought, water stress, wildfires, and floods. 2 “ A Mediterranean basin without a Mediterranean climate? ” McKinsey Global Institute, May 2020. Extreme weather is already evident as the pre-summer season of 2022 saw temperatures climb above 40°C in Seville. 3 “Spain is hit by the hottest pre-summer heatwave for 20 years as temperatures climb to 43 C,” Euronews, June 14, 2022. An increase in the number of “too hot” days could discourage tourism, particularly in peak season. For instance, a 2022 survey by a travel insurance company found that 65 percent of UK holiday makers thought Spain would be too hot to visit by 2027. 4 Charlotte Elton, “Spain, Greece, Turkey: Most Brits think holiday hotspots will be ‘too hot’ to visit by 2027,” Euronews, September 9, 2022.

Of course, Spain’s tourism sector cannot combat climate change alone. But this backdrop underscores the urgency to act. Globally, tourism is a significant contributor to emissions, and Spain can play a role in emissions reduction. In 2019, tourism was responsible for about 11 percent of greenhouse gas emissions, worldwide. Of this, the largest emissions came from domestic and international tourism in China, India, and the United States. Compared to these top three, Spain ranks at number 16 for emissions from tourism. 5 Sustainability in travel 2021: Quantifying tourism emissions for destinations, Skift Research, June 2021. Considering the size of Spain’s tourism industry, the country compares well against these destinations, but there is room for improvement.

Spain can set itself apart by prioritizing sustainability, including environmental issues such as water usage, plastic waste, carbon emissions, and social issues such as how tourism affects local communities. Globally, travelers are becoming more aware and are seeking out vacations with less impact on the environment and on local communities. Sustainability could become a key differentiator.

Furthermore, sustainable travel could draw discerning premium travelers who will likely be willing to pay for offerings that uphold their values. But efforts to draw these travelers will need to extend beyond marketing and involve real operational changes. Gen Z travelers, in particular, don’t care what tourism businesses say about their sustainability efforts, they want to see it in practice. 6 Dawit Habtemariam, “Tourism’s sustainability pitch needs to be more subtle for Gen Z,” Skift, March 8, 2023. Gen Zs, who typically have a heightened awareness of climate change, are looking for eco-friendly accommodation options. Skift found that 38 percent of Gen Zs across the world would consider staying in green accommodation on their next holiday, compared to the 33 percent response rate of those over 25. 7 Mary Ann Ha, “Meeting the high expectations of the Gen Z traveler: New report,” Skift, June 21, 2022.

This article examines the key aspects of sustainability that are relevant to travel and tourism and suggests ways in which stakeholders across Spain’s tourism sector could prioritize and invest in sustainable offerings. Such actions can ensure that this important sector remains competitive, and help to safeguard its assets for future generations.

Spain is a leading destination, but faces strong competition and a tough operating environment

The physical and economic consequences of climate change, global economic environment, strong competition, and changing consumer preferences all put pressure on the sector. Worldwide, rising inflation could prompt consumers to cut back on travel, or “downtrade” to cheaper destinations. While “revenge travel” boosted tourism as travel restrictions eased, the threat of a looming recession could dampen appetite for travel.

European travelers want to visit beaches that are conveniently close, warm, and affordable. The largest outbound markets for sun and beach tourism include Germany, the United Kingdom, Scandinavia, the Netherlands, Belgium, and Austria. Spain is a popular destination for sun and sand, accounting for almost one-third of international overnight trips to the EU’s coastal areas in 2021. 8 Eurostat dataset: Nights spent at tourist accommodation establishments by degree of urbanization and coastal/non-coastal area, accessed January 18, 2022. But, Spain competes with other destinations, in the Mediterranean and beyond, that cater to these tourists.

Even if overall demand falls, select locations across the country are at risk of over-tourism. Pre-COVID-19, a World Economic Forum report placed Spain first out of 140 competitive countries in travel and tourism. 9 The Travel & Tourism competitiveness report 2019, World Economic Forum, September 4, 2019. The report warned that one-third of international arrivals are concentrated in the top ten countries, and this concentration can lead to severe pressure, and negative effects, on tourism infrastructure and services as well as local populations.

Several Spanish beach destinations have struggled with unruly visitors, and some cities have experienced an anti-tourism backlash in the wake of overcrowding. 10 “Irish tourist seriously injured in fall from balcony in Spain,” Murcia Today, May 5, 2022; “Why Barcelona locals really hate tourists,” Independent , August 12, 2017. Authorities have stepped in to manage the situation in specific locations. For example, in 2020, Spain introduced new laws to limit alcohol consumption at all-inclusive resorts in the Balearic Islands. 11 “Britons limited to six drinks a day in Ibiza and Majorca on all-inclusive breaks,” Evening Standard, April 29, 2022. And several cities, including Madrid and Barcelona, introduced stricter regulations for private short-term accommodation rental to tourists to protect the long-term housing market. 12 “Barcelona wants to ban renting private rooms to tourists,” Bloomberg, February 5, 2021; “Barcelona takes on Airbnb,” New York Times, September 22, 2021.

These efforts could make tourism more sustainable for the long term. But the industry itself may be adding to conditions that make tourism unsustainable for the local workforce. Seasonality is a major hurdle in this regard. The country’s core tourism destinations have high seasonality, leading to peaks and troughs in employment. Unemployment reaches around 20 percent in the low season (exhibit).

A focus on all aspects of sustainability can improve the sector’s (and the country’s) perception and reputation—and ultimately affect tourists’ willingness to visit.

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What sustainability means for travel and tourism.

Sustainability is becoming increasingly important to travelers. In 2022, Booking.com found that more than 70 percent of global travelers intend to travel more sustainably over the next year (a 10 percent increase on the company’s 2021 survey) and 35 percent said that the sustainability efforts of accommodation and transport providers play a strong role in their booking decisions. 13 Sustainable travel report 2022 , Booking.com.

But what does sustainable travel mean? According to the World Tourism Organization, sustainable tourism addresses the needs of visitors, the industry, the environment, and host communities based on three interdependent factors: 1) social sustainability (respect for the socio-cultural authenticity of host communities, support for local businesses, and levels of tourism that are acceptable to local communities); 2) environmental sustainability (measures to reduce environmental impact and preserve natural heritage and biodiversity); and 3) economic sustainability (business models that achieve economic growth without negatively impacting social, environmental, or cultural aspects of communities). 14 “Sustainable development,” UNWTO website.

By improving environmental and social sustainability, organizations across the travel and tourism value chain can strengthen their business models and reach economic sustainability. Without considering social and environmental factors, economic viability may be difficult to reach or maintain in the long term.

Several countries are taking an integrated approach to tourism development with the goal of becoming more resilient, sustainable, and inclusive. In some instances, this means adapting a country’s tourism offerings to reduce seasonality and the strain it puts on local infrastructure and resources. Increasing visitors in off-peak periods can lead to year-round jobs and businesses. For example, Slovenia has committed to 20 projects to transform mountain destinations into year-round resorts for active holidays outside of ski season. 15 OECD tourism trends and policies 2022, OECD. And Norway’s “Norway all year round” plan aims to spread tourist traffic across several locations and seasons. The plan intentionally does not market Norway as a cruise destination and aims to attract travelers in source markets who are available to travel all year round, and have the means to do so. 16 “Making Norway an all-year-round destination,” Sustainable Tourism in the North website.

Transforming the tourism workforce

New Zealand’s Tourism Industry Transformation Plan begins with a focus on the workforce as the core element of developing a thriving tourism system. The plan paves the way for better experiences for those within the industry as a way to deliver better outcomes for employees, businesses, and visitors.

The plan puts forward new ways of working, for instance, to improve employment standards and practices relating to decent pay and career progression, and to provide fit-for-purpose education and training.

Another innovation “embrace the flux, enable the flex” aims to reframe the tourism industry’s attitude to seasonality. Rather than the peaks and troughs being a barrier to attracting and retaining employees, the industry can use peaks and troughs to its advantage to upskill people, provide consistent employment, and reduce barriers to people holding multiple jobs across the year and across sectors.

One of the initiatives involves collaboration between tourism and conservation employers to help employees maintain stable employment, remain in regions with limited employment offerings, and support the wider community. It also enables tourism employees to gain local conservation knowledge and skills, and those workers can then share their expertise and insights with visitors and increase the value of the tourism offering in the region.

Source: Tourism Industry Transformation Plan: He Mahere Tiaki Kaimahi, Better Work Action Plan, New Zealand Government, March 2023.

Other country-level social and economic sustainability initiatives focus on the tourism workforce. New Zealand recently launched a transformation plan aimed at improving conditions for those who work in the tourism industry, as a basis for transforming the entire sector (see sidebar “Transforming the tourism workforce”).

Travel businesses have also taken steps to reduce the effects of seasonality on the local workforce, for example, by sharing staff. In Geneva, the Ice Castles attraction that has a four-month winter season shares staff with the Lake Geneva Ziplines & Adventures company. This provides extra work and helps to retain staff at both businesses each season. 17 Nathan Andrew, “How to maximize the value of tourism shoulder season,” Blend, August 2021.

The social, environmental, and economic aspects of sustainability are intertwined in global consumers’ perspectives. Booking.com respondents around the world said they chose sustainable options because they wanted to reduce their impact on the environment, have a more locally relevant experience, or believed that sustainable properties treat communities better. 18 Sustainable travel report 2022 , Booking.com.

Spanish respondents held similar views on sustainability as their global counterparts—they are concerned about waste and energy consumption, and 79 percent intend to walk, cycle, or take public transport during future trips. Respect for local communities is important, too, as 68 percent want authentic experiences that are representative of local culture. In addition, 68 percent will go out of their way to avoid popular destinations and attractions to avoid contributing to overcrowding. 19 Sustainable travel report Spain 2022 (Informe Global Sobre Turismo Sostenible 2022) Booking.com.

Considering that in 2019, 45 percent of tourism spend in Spain was domestic, Spanish traveler sentiment is particularly relevant to Spain’s tourism offerings, for locals and international tourists alike. 20 Global travel service data from Oxford Economics.

Globally, hospitality providers may be at risk of not meeting customer expectations around sustainability as there is a gap between what consumers want and what exists in the market. An earlier Booking.com survey spanning 30 countries—Spain being one of them—found that one-quarter of accommodation providers had not implemented any sustainability measures; and for those that had, only one-third actively informed their customers about the measures they had taken—and this usually happened at check-out. 21 Sustainable travel report 2021, Booking.com.

Taking action on sustainability (and actively communicating what has been done) could bridge this gap, attract new travelers, and help Spain’s tourism sector to flourish while doing good for local communities and the planet. Much of McKinsey’s research on sustainability shows that doing well and doing good are not mutually exclusive —these actions reinforce each other. Industry-wide commitment to sustainability could help to differentiate the sector, and respond to consumer needs, thereby increasing the chances of economic sustainability.

How sustainability-related initiatives provide a unique experience

Destinations around the world have demonstrated that environmental and social sustainability initiatives can protect resources and promote local communities—and become flagship projects that garner international recognition and draw visitors looking for meaningful and authentic travel experiences.

• A Dutch partnership between national NGOs and local communities created a new way to maintain beaches without threatening biodiversity. The initiative involved locals and tourists and led to a new certification method, a first around the world. In 2021, Goeree-Overflakkee was awarded the first “Green Beach” certification, and in 2022 became known as the cleanest beach in the Netherlands. 1 “Green Destinations top 100 stories 2022: Together for a new standard in biodiverse green beaches,” Green Destinations website.
• The Greek region of Attica was named the world’s leading sustainable tourism destination in 2022 by the World Travel Awards based on its cultural wealth, natural beauty, modern infrastructure, and the comprehensive plan implemented by the region in order to turn Attica into the first “green” region. 2 “World's leading sustainable tourism destination 2022,” World Travel Awards website.
• Visitors to Hiiumaa island in Estonia usually rely on private cars to visit key attractions. To provide visitors with a lower-carbon mobility option and a more authentic, nature-based experience of the island, a local entrepreneur created an electric bicycle network (including solar power loading stations) which has become popular with tourists and locals. 3 “Green Destinations top 100 stories 2022: Carbon neutral and local, new opportunities in tourism and public transport in Estonian’s green island Hiiumaa,” Green Destinations website.
• In Istria, Croatia, around half of tourists stay in small, private accommodation. Eco Domus is a certification program that teaches private accommodation providers sustainability practices on topics including water, food, health, and light and noise pollution. The aim is to provide better quality, and more sustainable, local offerings. 4 “Green Destinations top 100 stories 2022: Eco Domus, eco-friendly accommodation,” Green Destinations website.

Of course, taking action requires time, resources, and investment. Individual hotels or tourism businesses may have little incentive to redefine core offerings or invest in infrastructure to demonstrate that sustainability is important to them. But businesses that begin to differentiate themselves could reap the benefits. Many destinations in the region provide examples of how sustainable offerings can become a drawcard for visitors, and earn international acclaim and prestige (see sidebar “How sustainability-related initiatives can offer tourists a unique experience”).

The path toward eco-friendly travel in China

Actions to advance sustainability across spain’s tourism sector are emerging.

Spain developed a Sustainable Tourism Strategy 2030, a national agenda to help the tourism sector address medium- and long-term challenges including socioeconomic and environmental sustainability. 22 “Sustainable tourism strategy of Spain 2030,” Spain’s Ministry of Industry, Trade and Tourism. Even though this national sustainability strategy is in place, there are limited mechanisms to help small businesses partake and contribute. This is particularly challenging as small- and micro-sized businesses make up the vast majority of all businesses in the country’s tourism sector. According to Statista, micro-size businesses account for around 92 percent of Spain’s travel, tourism, and hospitality businesses. Small businesses make up just over 7 percent, and medium and large businesses account for the remaining half a percent. 23 Statista, Distribution of businesses in the tourism sector in Spain in 2020 by size, June 2022.

This fragmentation can halt progress and collective action, for instance in emissions reduction. Spain’s large hospitality providers are making efforts to reduce carbon emissions, and many are pioneers in the field: Melia opened Menorca’s first carbon-neutral luxury hotel in 2022, showcasing carbon-neutral operations, “intelligent” energy-efficient buildings, and circular models for water resources. 24 Tom Otley, “Melia opens Villa Le Blanc By Gran Meliá in Menorca, Spain,” Business Traveller, July 20, 2022. Iberostar has committed to becoming carbon neutral by 2030—a target that is 20 years ahead of many other international hospitality brands. 25 “Iberostar will be carbon neutral by 2030, 20 years ahead of the industry’s global target,” Iberostar press release, November 8, 2022.

In general, smaller and medium-size providers’ goals and targets are less ambitious than those of international peers, presumably because the economic benefits of such actions are unclear, or they may fear first-mover disadvantages like higher costs. Various Spanish hotel chains have committed to reducing emissions by 20 to 35 percent, with timelines ranging from 2030 to 2035. By comparison, many international brands have committed to net zero by 2050 and have strict measures in place to achieve this.

According to the Greenview Hotel Footprinting Tool, which calculates the carbon footprint of a hotel stay anywhere in the world, Spain is among the best-performing countries in terms of low-carbon room footprint and meeting footprint. While this tool points to a strong focus on water-, waste- and emissions-reduction in Spanish hotels, it is difficult to assess what actions many smaller hotels and other tourism businesses are taking on the sustainability front.

Sustainable tourism in Valencia

Valencia claims to be the first city in the world to track the carbon footprint of all tourism activities in the city and has committed to achieving carbon-neutral tourism by 2025. 1 “Valencia becomes the first city in the world to verify and certify the carbon footprint of its tourist activity,” Valencia Tourism official website, July 10, 2020.

Valencia’s official tourism website features sustainable tourism as a key element and makes sustainable offerings visible. For instance, the website encourages visitors to reduce emissions by taking public transport or traveling by bicycle and to support the local economy by shopping at smaller, local stores. It also offers tips on how to be a “responsible tourist who is committed to the environment at all times” such as using energy and water sparingly, recycling, reducing plastic, and respecting local residents.

In this way, the city has positioned itself as “the city taking care of the planet” and made sustainability its differentiating factor.

Even though there may not be concerted and unified action on social and environmental sustainability across the sector, success stories exist of initiatives being put in place that make sustainability a key differentiator (see sidebar “Sustainable tourism in Valencia”). Sector-wide efforts could increase investment into sustainable offerings, make these more visible to tourists, and ultimately position Spain as the destination of choice for sustainable travel.

How Spain could become a sustainable destination of choice

Individual travel and tourism businesses’ environmental and social sustainability efforts need to achieve critical mass if Spain is to become known as a leading destination for sustainability-conscious travelers. These actions are also vital to preserve the sector’s economic sustainability. Collective and concerted action is required to build momentum. All stakeholders have a role to play in addressing the sector’s rationale for action, setting a clear course, and developing the support structure to achieve it.

Identify the value at stake. The sector could take a high-level view to evaluate the status quo, benchmark where Spain could be, and quantify the costs and benefits of prioritizing sustainability throughout the sector, at scale. All stakeholders including policy makers, government, and industry could jointly develop a sustainable travel concept for the sector with a clearly articulated justification for action.

Costa Rica provides an example of a national tourism strategy focused on sustainability. The industry is aligned with national objectives to protect the country’s forests and biodiversity. National parks, nature reserves, and protected areas make up around one-quarter of Costa Rican territory and the sector promotes ecotourism and sustainable offerings that support the conservation of these areas. 26 “Costa Rica, a country committed to the environment,” Aquae Fundacion, July 6, 2021.

Spain’s stakeholders could also agree on industry-wide standards, as having these in place would likely accelerate the transition to sustainable tourism. Standards that align the motivations of different stakeholders and take into account the interests of all parties have a greater chance of adoption. For example, including mandatory sustainability criteria in the hotel star rating system could bring the motivations of hotel owners and operators into alignment. 27 “The path toward eco-friendly travel in China,” McKinsey, March 14, 2023. Setting unified sector sustainability targets could also boost the credibility of sustainability claims or commitments made by individual businesses.

Define a strategy. This includes establishing initiatives to address specific concerns such as decarbonization, water usage, waste management, or overcrowding and setting targets and practical actions to achieve them. For instance, one initiative in Costa Rica—as part of its conservation effort—is a ban on single-use plastic in national parks, biological reserves, and national monuments. 28 “Costa Rica, a country committed to the environment,” Aquae Fundacion, July 6, 2021.

In another example, Iceland set a strategy to reduce seasonality—a long-standing challenge for Icelandic tourism. In 2010, close to half of travelers visited the country during the summer months of June, July, or August. The travel industry, with support from the government and others, launched an international marketing campaign to promote Iceland as a year-round destination. Winter activities such as viewing the Northern lights, snowmobiling, and glacial treks became popular with visitors. Between 2010 and 2019 the share of tourists that visited in summer fell from around 50 to 34 percent, while tourist arrivals continued to grow. 29 Icelandic Tourist Board, Isavia, visitor departure statistics.

Once the strategic direction is set, sector-wide initiatives can be put in place. In New Zealand, a collaborative and concerted effort involving public and private organizations gave rise to the Tiaki Promise, a pledge that encourages visitors to take care of the country’s natural resources: “While traveling in New Zealand, I will care for land, sea, and nature, treading lightly and leaving no trace; travel safely, showing care and consideration for all; and respect culture, traveling with an open heart and mind.” One collaborator in the initiative, Air New Zealand, released an in-flight safety video that introduced the promise to travelers. 30 Kresentia Madina “The Tiaki Promise encourages tourists to care for New Zealand’s nature,” Green Network, August 26, 2022.

It is also important to rank individual measures to address challenges to ensure that competing priorities do not hinder progress. Collective action will have the most impact if all stakeholders are committed to the same issues.

Many travel and tourism businesses across the world have developed and successfully marketed sustainable products and services, such as low-impact tourist offerings that are less harmful to the environment or local communities. In fact, many travel guides publish editions dedicated to sustainable offerings. 31 Examples include Fodor’s Green Travel: The world’s best eco-lodges and earth-friendly hotels and Lonely Planet’s The sustainable travel handbook . Spain’s tourism providers could follow suit. And the sector could make travelers more aware of existing sustainable travel options through communications campaigns to draw sustainability-conscious travelers from across the globe.

Travel and tourism businesses could also extend sustainability efforts across their value chains. Examples include working with suppliers to ensure linen and towels are sustainably produced, procuring energy-efficient equipment, or engaging local communities by sourcing local food suppliers. There are also opportunities for businesses to collaborate and design sustainable offerings that combine products and services, such as sustainability-focused tours featuring carbon-neutral accommodation, electric ground transportation, and trips to local businesses.

Globally, hotel chains have partnered with sustainability-related businesses or action groups to advance their own sustainability initiatives. These actions also help to strengthen the hotel’s brand and reputation for sustainability consciousness. For instance, the luxury hotel, resort, and spa operator Six Senses partnered with the United States Coalition on Sustainability and the action platform SustainChain in an initiative to remove single-use and disposable plastics from its operations. 32 “Six Senses is the first hospitality brand to partner with the United States Coalition on Sustainability and SustainChain,” Six Senses press release, April 26, 2021. And as part of its pathway to net zero, the Radisson Hotel Group partnered with Ecovadis, a sustainability ratings provider, in a collaboration that aims to extend the EcoVadis rating to the group’s global supply chain. 33 “Radisson Hotel Group increases focus on supply chain sustainability; announces partnership with Ecovadis,” Radisson Hotel Group press release, December 16, 2021.

Spanish tourism and hospitality providers might consider similar collaborative partnerships and initiatives to build momentum for industry-wide action and raise global travelers’ awareness that Spain is committed to sustainability.

Provide guidelines and support. Smaller businesses may lack the knowledge or resources necessary to act on sustainability. Actions could be taken to bridge knowledge gaps and secure funding, at government or industry association level. Funding programs, incentive schemes, or financial instruments can accelerate adoption of sustainable solutions, especially for smaller businesses. For example, South Africa’s Green Tourism Incentive Program targets small tourism businesses like lodges and guest houses. The program funds water- and energy-efficiency assessments and recommends the optimum green solution for the business. The bulk of the cost to implement the solution is also funded by the program. 34 “The Green Tourism Incentive Programme,” Industrial Development Corporation, October 4, 2021.

The industry could also draw on available resources and convene stakeholders to share knowledge and expertise. For instance, the World Tourism Organization provides resources and guidelines for building a circular economy, reducing food waste, and tackling plastic pollution. 35 “Sustainable development,” UNWTO website.

Regulation could be put in place to support change. Regions or cities could look to establish regulations that ensure tourism activity is environmentally and socially sustainable. Progress has been made in this regard, as the Law on Circularity and Sustainability in Tourism, approved by Parliament in May 2022, made the Balearic Islands the first sustainable destination by law. 36 “Balearic Islands, sustainable tourism is now a law,” Excellence Magazine, June 21, 2022. This regulation protects seasonal tourism workers, considers local residents’ quality of life (for instance by blocking an increase in the number of beds for the next four years), reduces waste, and protects natural resources. It will also introduce a hotel classification system based on the concrete actions taken to promote sustainable tourism.

Regulatory bodies and industry associations could also support business owners with guidance, encourage implementation through incentives, and enforce regulations through penalties for non-compliance.

Spain’s tourism sector has an opportunity to further develop existing sustainability efforts, thereby protecting the future of the sector. A sector-wide focus on environmental and social sustainability can also act as a key differentiator and draw visitors who are consciously trying to travel more responsibly. Furthermore, all stakeholders could benefit if existing initiatives, and new investments, are made more visible and attractive to tourists.

Javier Caballero is a partner in McKinsey’s Madrid office, Margaux Constantin is a partner in the Dubai office, Steffen Köpke is a capabilities and insights expert in the Düsseldorf office, and Daniel Riefer is a partner in the Munich office.

The authors wish to thank Lisa Kropacek for their contribution to this article.

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The Spanish tourist sector closes its worst year since the 1970s

Fewer than 20 million foreign visitors have come to spain in 2020 and revenues in the sector have plummeted by more than 75%, figures not seen in 50 years.

The coronavirus crisis has devastated the tourism sector in Spain, creating a kind of volcanic fissure of considerable dimensions that oozes lava, destroying almost everything in its path. The figures speak for themselves, with revenues plunging by more than 75% and the year ending with fewer than 20 million foreign visitors, leaving behind collective spending of less than €20 billion compared to 83.5 million in 2019, spending almost €92 billion.

The collapse in demand is unprecedented. Unlike other sectors, there is little recovery in tourism as mobility between countries continues to be at a minimum. In fact, according to official records, it’s been half a century since so few foreign travelers came to Spain. In 1969, for example, almost 21.7 million foreign tourists visited the country while in 1968, there were around 19.2 million. In the best case scenario, 2020′s figures will fall somewhere between these two, although, according to the last data available released in October, Spain had 17.8 million foreign tourists, the same number as in 1967.

And that’s not the end of it. According to the Exceltur tourism lobby, revenue measured by the National Statistics Institute’s (INE) satellite account formula, which includes everything that tourism brings to the economy, will end the year at around €46 billion; that is, around €110 billion less than 2019 and a figure comparable with 1995, when the INE began to keep records. Even then, the comparison is misleading as it fails to take into account inflation; the fact that €46 billion is worth far less now than it was 25 years ago.

“Our country’s tourism is facing the worst crisis in its entire history,” Industry, Trade and Tourism Minister Reyes Maroto tells EL PAÍS. “And this is because the two elements that define the very essence of travel are affected: mobility and confidence.” The impact of the coronavirus has been the same everywhere. In fact, Spain’s losses are in line with what the World Tourism Organization (UNWTO) has estimated for countries across the board. According to the UNWTO’s last report, “tourism has dropped back to 1990 levels with arrivals falling by more than 70%.”

If tourism manages a quick bounce back to pre-pandemic levels, the impact may be short-lived but, as it stands, its share of GDP will drop from 12.4% in 2019 to just over 4% this year. “Of all the sectors, ours has been by far the hardest hit in the Spanish economy,” says José Luis Zoreda, vice-president of Exceltur. “If we don’t receive significant financial aid, thousands of companies and hundreds of thousands of jobs will be lost.” The productive fabric of the sector has been steadily unpicked since mid-March. At first, it was hoped that some of the summer could be salvaged. But the recovery was so slight that many businesses had to shut up shop once more – initially as a temporary measure but increasingly as a definitive one.

Uncertain future

There is a general consensus within the sector that the central government needs to offer a lifeline to a sector that kept the economy going during the last crisis. “It is time for the government to help companies survive,” says Oriol Anguera-Torrell, professor and researcher of Applied Economics in Tourism at the University of Barcelona. “And it must be done region by region, because the impact varies greatly in each.”

At least in the short-term, the future looks bleak. Not only is there the uncertainty triggered by the pandemic, there are other issues, including Brexit, the reduction in buying power and, among the better off, a considerable increased tendency to save, all of which amount to depressed demand that could take some time to recover. “There will be reduced mobility regarding big distances over the next two years,” says Juan Ignacio Pulido, director of the Laboratory of Tourism Analysis and Innovation at the University of Jaén.

This view is backed by the Funcas think-tank. “We expect a recovery of 40% in 2021 and 80% in 2022, according to what we are seeing in other countries,” Raymond Torres, director of the foundation’s international analysis department said several weeks back. “The figures will continue to be way below what they are in normal years, but there will be a powerful recovery because we are now at a minimum.”

Meanwhile, the government is somewhat more optimistic and has set a date for reactivating the sector, in light of the vaccination program. “We have our sights set on Easter 2021,” says Maroto. “That is when we hope to kickstart the sector’s recovery, which will begin with domestic tourism and, gradually, incorporate tourists from distant markets beginning with our European neighbors.”

Zero tourists, zero nightlife

Lucía bohórquez, palma.

The tourism sector in the Balearic Islands was blindsided by the pandemic just as it was beginning to warm up for what was expected to be a bumper season. The total loss of revenue due to the lockdown at Easter did not bode well, although the gradual opening of the country in May with other sectors resuming activity seemed cause for a degree of optimism. On June 15, the first international tourists arrived in Mallorca from Germany and the sector started to navigate its way through the uncertainty, with hotels only partially open.

By mid-August, everything started to go wrong again. The biggest blow was dealt by the UK, the second-largest foreign market in the Balearic Islands, when it announced it was imposing a quarantine on travellers returning from Spain. The measure led to a flood of establishments shutting their doors and brought the end of the summer season forward to September. According to Exceltur, by the end of 2020, the Balearics will have had 82% less activity than usual. “There has been no help from the authorities in the way of reducing taxes for companies in the sector,” says María Frontera, president of the Hotel Federation of Mallorca.

The coronavirus has also devastated nightlife, one of the mainstays of the tourism industry in the region. In fact, there has been no nightlife since March as clubs and bars were unable to open even partially during the summer. The Balearic Association of Nightlife estimates that 63% of establishments will end up closing over the course of next year. “There are almost 400 workers in a very complicated situation, who usually live on their summer earnings in the winter,” said the president of the association, Jesús Sánchez, during a protest in front of an employment office.

“There were no customers so we closed”

Nacho sánchez, málaga.

José Ravira still remembers when he opened a small kiosk on Venus beach, next to Marbella’s old town in 1969. Those were the days when tourism was a family affair; simpler times. He was around 20 years old and what he didn’t know was he was embarking on a life in the hospitality sector. Since then, he’s seen it all, from the “incredible” transformation of Marbella, the jet set years, the ETA terrorist attacks, the era of the controversial Marbella mayor, Jesús Gil y Gil, and the Arab petrodollars in Puerto Banús. “But I never imagined anything like what has happened this year,” he says. His specialty is a fish dish called pescados espetados, but he has only been able to serve this for three months as opposed to the usual 10, from March to December. In a normal year, he would now be in the final stretch of his season, but this year it ended in September. “There were no customers so we closed,” says Ravira, who now runs the famous Pepes Bar and feels uncertain about its prospects in 2021.

Ravira is not an exception along the Costa del Sol. Beach tourism has suffered the biggest setback in its history. Borders were closed, people were warned against traveling to Spain and restrictive measures were reintroduced during the second wave of the virus. “It’s a drama,” says Margarita del Cid, CEO of Costa del Sol Tourism, who criticizes a lack of information about the measures the central government has been taking. “Working with uncertainty is very negative,” she insists.

Currently, the vast majority of hotels are closed and have no idea when they will be able to re-open. The images of empty sun loungers and deserted promenades spell disaster. According to Costa del Sol Tourism, the 26 million nights booked in 2019 shrunk to seven million in 2020. The number of travelers has also fallen by more than 70%. And it remains to be seen how the crisis will affect the tourism industry in this part of Spain in 2021: “Part of the sector will be left by the wayside,” says Del Cid, who remains optimistic in spite of everything. “I am convinced that from the second half of next year everything will be better..

Zero urban tourism

Josep catà, barcelona.

The situation is equally disastrous in Catalonia. One of the cornerstones of the region’s economy, the tourism sector is ending the year with a Christmas of restrictions, making it one of its worst in living memory. With the latest data available from the Catalan Statistics Institute released in October, the drop in foreign tourism has been 78.5%. Spending has fallen by 81.8% and overnight stays in hotels were more than 76.5% lower than the same period last year.

Between hotels, campsites and apartments, Catalonia has the capacity to accommodate 700,000 tourists. Now coastal towns that live almost exclusively from the sector, such as Lloret de Mar or Salou, are enclaves of closed establishments and thousands of unemployed workers. The situation is mirrored in urban destinations, such as Barcelona, where the sector has nose-dived. “It has been a horrible year,” says Manel Casals, director of the Barcelona Hotel Guild. “It began in January, which is never good, followed by February, which was marked by the cancellation of the Mobile [World Congress trade fair], and has continued with the restrictions due to the pandemic. We estimate that the sector will not start to recover until the middle or end of next spring.”

Currently there are 110 hotels open in the city, which is 25% of the 440 establishments that exist, and the occupation of those in operation does not exceed 15%. “The only visitors are the ones who have to come here, either for work or for the hospital,” says Casals. “The restrictive measures have a massive impact on us and we have no help.” Barcelona’s hotel sector estimates it has lost €1.4 billion this year, 82% of the revenue of previous years.

Lost high season

Guillermo vega, las palmas de gran canaria.

Tourism in the Canary Islands has also experienced the worst year in living memory, with two months of no tourists at all, hotels closed, businesses shut down and visitor figures more typical of the Franco era. Local businesses harbored hopes that the fall would bring better times, but the second wave of the pandemic shattered these hopes. With the high season considered a washout, hopes are now being pinned on the second quarter of 2021.

“We are in a situation where there are restrictions in all the issuing countries,” says the president of the Las Palmas Federation of Hotel and Tourism, José María Mañaricua who is among those already looking forward to next summer. “The Spanish government’s stipulation that PCR tests should replace antigen tests makes the destination more expensive and leaves us in a fragile situation.”

This view is reiterated by the President of the Canary Islands Confederation of Businesses, Agustín Manrique de Lara, who says, “There has been little loyalty shown by the central government to the Canary Islands.”

Until the resurgence of the virus in Europe, official figures predicted just over four million tourists by the end of the year, although government sources now accept that figure is unlikely to be reached. According to the INE, 3.4 million international visitors entered the Canary Islands between January and October, compared to more than 13 million the previous year. On a more optimistic note, the Canary Islands’ Minister of Tourism, Industry and Commerce, Yaiza Castilla, says “demand is still strong, but tourists cannot come” due to the restrictions put in place by the 14 main issuing markets. However, she is confident that at the beginning of next year the situation could be alleviated by the vaccine roll out. “We expect to welcome at least eight million tourists in 2021, although these forecasts change by the week,” she says.

More information

Spain approves relief package for struggling hospitality businesses

Spain’s Brexit fears: fewer tourists and dwindling exports

Spain: Tourism and employment boom puts economy back on track

The first quarter of 2022 will be impacted by the Omicron wave, but from the second quarter onwards we expect the economy to grow faster again. A strong labour market, an uplift in public investment, and a further recovery of the tourism sector will boost economic activity. Inflation is high, but we expect it to come down this year

Stronger growth from 2Q onwards

The Spanish economy ended 2021 on a strong note. GDP growth came in at 2% quarter-on-quarter, which was higher than expectations. Due to the Covid-19 Omicron wave consumption contracted, but investment and exports grew sharply. The economy is now about 4% smaller than pre-pandemic levels. This is in contrast to the eurozone as a whole, which reached its pre-pandemic level in 4Q21.

Survey data, however, points to a weakening in the first quarter of this year caused by Omicron. But from the second quarter onwards we expect the economy to grow faster again. The main reasons for this are a vibrant labour market, a boost to public investment, and a continued recovery of the tourism sector. High inflation, however, is currently a threat, even though we think it will come down over the year.

Evolution of GDP and components during the pandemic (4Q 2019 = 100)

A very strong labour market will support consumption.

Historically, the negative impact of a recession on the Spanish labour market is quite extreme and long-lasting. But the impact of the pandemic is already digested. Indeed, there are currently more people registered with the social security system and fewer people are jobless than before the pandemic. The unemployment rate was 13.3% in the final quarter of 2021, which is lower than before the pandemic. Looking ahead, it is likely that the unemployment rate will continue to fall. Demand remains strong as industrial companies indicate that their order books are richly filled, even more so than before the pandemic. And the number of businesses that report labour shortages is still limited, certainly compared to the eurozone.

Figure 2: Spanish companies are less labour strapped (% of businesses saying that labour limits their production)

Structural problems in the labour market are still with us.

All this is obviously good news for short-term economic activity, but that does not mean the structural problems in the labour market are history. Indeed, the Spanish unemployment rate is still almost double the rate of the eurozone, youth unemployment is very high, and almost one in four Spanish workers is on a temporary contract.

The latest labour market reform, which tweaks the 2012 measures and focuses on limiting the use of temporary contracts, caused a lot of discussion on the political front. It is backed by businesses and unions, but initially it did not have sufficient support in parliament. Surprisingly, it did pass recently… by accident . This could obviously cause some political tension.

Rise in public investment will support growth

The labour reform is also important for short-to-medium term activity as it would help to secure new NextGenerationEU (NGEU) funds which should boost public investment. The Spanish government wants to frontload the EU money and spend 77% of the €70bn in grants (about 4.5% of 2021 GDP) over the period 2021-23. The next instalment of €14bn should be requested before April. Even though we think this rate of absorption is very ambitious, the NGEU will still have a positive impact on growth in 2022 and 2023.

Another issue that will support public investment is the budget for 2022, the largest in Spanish history. It was approved at the end of last year, which lowered political uncertainty and includes €40bn of investments (including NGEU funds).

Tourism sector will further recover

During the first quarter of this year, the tourism sector will still be affected by the Omicron wave, but we think that from the second quarter onwards the sector will be able to continue its recovery. In 2021 the tourism sector was able to recuperate but less than expected due to travel restrictions and new Covid waves. The number of international tourists grew from about 19 million in 2020 to about 31 million in 2021, but this is still about 52 million (!) less than in 2019. Since this sector has not yet fully recovered, this of course gives more potential to support growth in the years to come.

Inflation should come down during 2022

As for the whole of Europe, rising inflation is a threat to the Spanish economy. Headline inflation was about 0% at the beginning of 2021, but in January 2022 it equalled about 6%. Core inflation started to rise in the middle of 2021 from about 0.2% to 2.4% in January 2022. The biggest contributor to the rise was higher energy prices, and this item has a larger weight in Spain than the eurozone as a whole. But the sharp rise of core inflation warrants caution. Indeed, higher energy prices can feed into other consumer prices and on top of that more and more companies are saying that they will increase their selling prices. We nevertheless expect that inflation will come down during 2022 as we do not expect energy prices to rise as much in 2022 as they did in 2021. They might even come down. However, due to second-round effects, we expect about 2.5% headline inflation at the end of 2022, which is higher than pre-pandemic levels of about 1.0%.

All in all, the economic outlook is good for Spain. We expect the economy to grow by about 5.0% in 2022, matching the 5.0% growth in 2021. For 2023 we expect about 3% growth. In this scenario the Spanish economy would reach its pre-pandemic level in the first half of 2023. Indeed, the firm labour market, a push of public investment, a further recovery of the tourism sector and declining inflation should all help to push the economy further.

10 February 2022

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• 29th April 2024 | Unemployment rises by 117,000 in 1Q24
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71.6 million tourists visit Spain in 2022, spending €87 billion

Posted By: The Corner 3rd February 2023

The data on tourist movements at borders (Frontur) made public by the Spanish statistical institute show that the figures for the end of 2022, which are close to 72 million registered tourists, are still 14.3% below those recorded in 2019, a record year for Spanish tourism in which 83.7 million foreign visitors to our country exceeded 83.7 million.

For the Minister of Industry, Trade and Tourism, Reyes Maroto, these data confirm the intense recovery of the tourism sector in 2022. “The expectations we had of recovering the majority of international tourists from the pre-pandemic period have been fulfilled, but the most important thing is that spending is growing more and also the average stay, and this means an improvement in the quality and profitability of our sector,” she said.

The main countries of residence of tourists visiting Spain last year were the UK, France and Germany. Tourist arrivals from the United Kingdom increased by 251.3%, those from France by 73.3% and those from Germany by 87.4%.

By regions, the auronomous community of Catalonia was the principal destination in 2022, with 20.7% of the total number of tourists. It was followed by the Balearic Islands (18.5%) and the Canary Islands (17.2%).

Most of the international tourists arriving in Spain came by air, a total of 59.3 million, an increase of 142.5% over the previous year. Nearly 11 million international visitors arrived by road, an increase of 71.8%. Hotel or rented accommodation was used by 59.5 million tourists (140.3% more than in 2021) and homes owned or rented by family or friends by another 12 million (87.8% more).

The majority stay in 2022 was between four and seven nights, and the majority of visitors (54.1 million) came to Spain without a tourist package, twice as many as in 2021. These data confirm the end of a positive year for tourism in Spain, which in December was visited by 4.1 million international tourists, 39.9% more than in the same month in 2021.

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Perspective

Tourism ruined my city. tourism is saving my city.

Miguel Macias

Encarnación Square is one of the most visited landmarks in Seville. Miguel Macias/NPR hide caption

Encarnación Square is one of the most visited landmarks in Seville.

SEVILLE, Spain — There was an old house in a very narrow street in central Seville, Spain that I used to stop and look at when I was a teenager in the early '90s. I dreamt of owning it one day, or at least one similar in the neighborhood that back then had a decent number of locals.

I say "back then" because today that area, Barrio de Santa Cruz, has lost its soul. It's not me saying this — it's what you hear from nearly anyone who lives or works in the neighborhood.

Many longtime residents have left, saying they were pushed by a wave of tourism that, after the pandemic, has come back in full force.

It's good news for the city and its economy. But it's mixed news for nearly anyone whose memories are attached to those narrow streets, now filled with souvenir shops, boutique hotels and restaurants that locals don't quite feel welcome in anymore.

This is the story of how a city tries to honor its past while ensuring its future.

Souvenir shops in the heart of Barrio de Santa Cruz, in Seville. Miguel Macias/NPR hide caption

Souvenir shops in the heart of Barrio de Santa Cruz, in Seville.

Students replaced by selfies

In the heart of Barrio de Santa Cruz you can still find a public school. It almost seems like a relic of a different time, when this neighborhood had not turned into a museum of sorts.

Ana Palacio is the principal of the San Isidoro school. She joined seven years ago, when admission for students was competitive.

Ana Palacio is principal of San Isidoro Public School, in the Santa Cruz neighborhood of Seville. Miguel Macias/NPR hide caption

Ana Palacio is principal of San Isidoro Public School, in the Santa Cruz neighborhood of Seville.

"When we'd start receiving applications for admission, people would camp out at the door and spend the night to grab a spot for their kids," she tells me.

Now, she has open spots in her classrooms, and the reason is simple. Palacio looks up and points at the beautiful old houses in front of the school, on Mateos Gago street.

"All those houses, where families used to live and send their kids to our school – all those houses are now apartments for tourists," she says.

For Palacio, this is not just a small inconvenience.

"I have real issues here. When kids enter and exit the school, I have a crowd of tourists at the door," she says. "Since the school building is a beautiful old convent, tourists want to take pictures and shoot videos."

The front gate of San Isidoro School, in Barrio de Santa Cruz. Miguel Macias/NPR hide caption

The front gate of San Isidoro School, in Barrio de Santa Cruz.

The tourism boom is causing an exodus of sorts. Locals have been leaving the historic center for other neighborhoods, which has then driven up rents across the city. Palacio gets emotional when talking about how Seville is changing.

"We have the largest historic city center in Europe. Let's not ruin it," she says. "If there are no neighbors that care for it personally – neighbors who hurt when they see that tree not being respected, when they see a glass bottle thrown on the ground – we need those neighbors, and we're losing them."

This change isn't confined to the city center. Palacio lives in Triana, a neighborhood overlooking the Guadalquivir river, which has also become a tourist attraction in recent years.

Venice will limit tour groups to 25 people and ban loudspeakers to control tourism

She says it's affecting the way locals enjoy the city, and that in areas where tourists flock, locals sometimes don't even feel welcome at tapas bars and restaurants.

"In Seville, you order the first beer at the bar. Then you sit down and chat with your friends. Then maybe you order a tapa. And after a while, you order another one. And before you realize it, it's 5 or 6 in the evening," she says.

That would be the Sevillian way. But many restaurants are no longer locally owned, or simply prefer to cater to tourists, who sit for an hour, order fast and copiously, and then move on.

These days it's not unusual to see restaurants that don't serve tapas anymore and won't let you sit at a table if you're not ready to order a meal.

There are those who benefit

There are some restaurants, however, that are still locally owned, and try to maintain a balance between benefitting from the tourism boom and serving local customers.

On Mateos Gago street, just a short walk from the San Isidoro school, I stand in front of a small restaurant called La Azotea. I know this place well; it used to be called Campanario more than two decades ago. I worked here when I was in my early twenties.

Chef Juan Antonio Gómez in front of one of his restaurants in Seville. Juan Antonio Gómez/NPR hide caption

Chef Juan Antonio Gómez in front of one of his restaurants in Seville.

I meet Juan Antonio Gómez, the chef and owner of La Azotea, outside of his restaurant, where the view from the tables is simply astonishing. The tower of the cathedral of Seville, La Giralda, is the most iconic monument of the city. If you come to Seville, chances are you will walk down this street and visit it.

When Gómez opened his first location, his clients were mostly locals.

"But soon — as in, like, three months — we start to receive our first tourist. And a year later, we have, every day, lines at the door at the opening time for 30 people, mostly tourists," Gómez says. His story reinforces a truth now widely known in Seville: if a restaurant is good, tourists will find it.

The Giralda tower, part of the cathedral of Seville, viewed from Mateos Gago street. Miguel Macias/NPR hide caption

The Giralda tower, part of the cathedral of Seville, viewed from Mateos Gago street.

Gómez says he wishes he could see more locals around Mateos Gago street — an area he has known since he was a child attending the same San Isidoro School that is now struggling to find students.

Tourism is an engine of the Spanish economy. In 2022, it represented more than 11% of the national GDP . It's even more acute in Seville, where tourism provides an estimated 20% of the city's economy.

This southern region of Spain where Seville is located has long been mired by unemployment as well, which currently sits at just over 18% — about 5 points above the national average. So you can appreciate how jobs in the service sector provide a lifeline for the city that welcomed nearly 2 million visitors in just the first eight months of 2023 — up 14% from the previous year.

Gómez benefits from this tourism boom, obviously, but he has mixed feelings: "What I'm seeing right now in Seville I've never seen before. It's massive. And I think, in one way or another, we have to stop a little bit."

One of the Starbucks coffee shops located in the heart of Seville's historic city center. Miguel Macias/NPR hide caption

One of the Starbucks coffee shops located in the heart of Seville's historic city center.

The year everything changed

Sevillians point to 1992 as transformative for the city. It was the year Seville hosted the International Expo, which became a presentation party of sorts, celebrating the 500th anniversary of Christopher Columbus' arrival in the Americas.

Seville was pitching itself to the world as a place of beauty and historic landmarks. Hundreds of acres of unutilized land was transformed into a type of international theme park, with more than 100 nations represented in pavilions.

Tens of millions of people visited Seville that year. Billions of dollars were invested in the city: bridges were built over the Guadalquivir River; dozens of new hotels were opened; a high-speed train connecting Madrid and Seville was inaugurated; and the city looked at the historic center as its crown jewel. A jewel that needed urgent care.

Miguel López was born and raised in the city center of Seville, where he still lives today. Miguel Macias/NPR hide caption

Miguel López was born and raised in the city center of Seville, where he still lives today.

Miguel López was 10 years old then, and lived in the neighborhood of Alameda – a huge open space now filled with restaurants. Like the city center back then, his neighborhood was falling apart, he tells me, with many houses needing drastic rehabilitation.

Crime was common in central areas, and it wasn't unusual to turn to a street and find yourself alone and vulnerable to theft or worse.

Before the wave of expo investment, the region of Andalucía had a staggering 30% unemployment rate , which skyrocketed to more than 50% for young people.

López was enamored with the expo as a child, with all its promise of change and progress, and visited the site many times that year. On his way home, he would have to cross the Alameda, an area that was known for drugs, crime and sex workers back then.

"Now my son, who is 12, plays soccer in the Alameda," López says. "The only issue he runs into is the complaints of patrons at restaurants who might be hit by a soccer ball here and there."

Children play soccer in the Alameda de Hércules, in the historic center of Seville. Miguel Macias/NPR hide caption

Children play soccer in the Alameda de Hércules, in the historic center of Seville.

Investment meant growing crowds of tourists, which led to gentrification and beautiful new pedestrian avenues and well-maintained buildings.

It also meant high — and still rising — rent prices. López still lives in the neighborhood today, and has tried to get access to subsidized housing in the area, but with no luck.

Recently, while looking at Airbnb properties in his neighborhood, he ran into a surprise: a subsidized duplex in the area was listed on the site.

"I was livid. So much so that I notified the city," López says.

It's not unusual to see locals trying to make a buck out of the tourism demand for accommodation, but for López, this was crossing the line. Someone lucky enough to have been awarded a house in the city center was turning around and listing it as a tourist apartment.

Accommodations for visitors, inside the walls of the old city in Seville. Miguel Macias/NPR hide caption

Accommodations for visitors, inside the walls of the old city in Seville.

And yet, López also admits to having rented his apartment on Airbnb for a few months while he was out of town.

"When I've done it, it was more about surviving, not a business," López says. "We need to resort to sharing our apartments to be able to afford them. We'll get to the end of our lives having to share an apartment."

Housing becomes the hot topic

In December, the city hall assembly voted down a proposed "tourist tax" that would have charged a fee to visitors spending the night in Seville, after mayor José Luis Sanz and his conservative party opposed it.

The mayor has previously said there is an oversaturation of accommodation for tourists in some areas of the city, such as Barrio de Santa Cruz, and that local residents are beginning to experience a certain tourism-phobia.

Yet he also says tourists have brought economic gains to the city that shouldn't be overlooked.

"Many belong to Sevillian companies and have brought wealth and contributed to the economic growth of the city," he says . "If it weren't for them, many blocks and old houses would have disappeared."

Plaza de San Francisco, during Christmas season, in the city center of Seville. Miguel Macias/NPR hide caption

Plaza de San Francisco, during Christmas season, in the city center of Seville.

A 2022 study found that more than 60% of properties in Barrio de Santa Cruz are used to house tourists . For other neighborhoods inside the historic center it's more than 20%, and overall the concentration of hotels and housing for tourists in central Seville is the highest of any city in Spain.

Just outside Barrio de Santa Cruz you can find another centric area, the San Bartolomé neighborhood, where Ana Álvarez-Ossorio was born and raised. She lives there now with her husband, and her daughter, who attends the San Isidoro school.

Ana Álvarez-Ossorio in Plaza Nueva, in the historic center of Seville. Miguel Macias/NPR hide caption

Ana Álvarez-Ossorio in Plaza Nueva, in the historic center of Seville.

She tells a familiar story: that when she was little, the neighborhood wasn't necessarily a desired place for locals to live in. Many houses needed urgent renovation or outright demolition. It's one of the reasons her parents were able to afford an entire house in what today is a prime location.

"It was a working class neighborhood back then. Families did not have a lot of money," Álvarez-Ossorio says. The expo in 1992 changed that.

"There was an urban plan implemented for the entire historic center to be brought back to life. Wealthy people moved in, started to buy property. Prices rose and working class people left the center of the city," Álvarez-Ossorio says.

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Today, the center is going through another time of deep change. And this time the target is not wealthy locals, but tourists.

"Seville is hosting anything from the Latin Grammys to international soccer events. Anything to attract tourists," Álvarez-Ossorio says. "And so, all this housing gets fully booked. The historic center is turning into a theme park."

Álvarez-Ossorio represents the tension playing out — she feels unease at the change, but is also benefiting from it by becoming an Airbnb host herself. After she and her sister moved out of the family house, they decided to renovate it and rent the bigger part to tourists. Ana's father still lives in the building, in a smaller apartment they kept for his use.

When I ask her about possibly limiting the use of apartments for tourists, she has mixed feelings.

"What worries me the most is that long-term rental units are disappearing in the city center. Because anyone who has an apartment available wonders: Do I rent for 600 euros a month, or do I turn it into an apartment for tourists and make 3500 euros? But we need some limits because our city center is going to turn into one massive hotel."

A view of Miguel Macias' house, currently under construction in Seville. José Antonio Cano/NPR hide caption

A view of Miguel Macias' house, currently under construction in Seville.

As for me, my dream of owning a house in the city center is long gone.

Instead, I now live just around the corner from a small construction site where my new house is being built. The neighborhood is just outside of the city center. Many consider this area the "new center" of Seville, where locals live and where businesses still survive off of them. But things can change fast.

I've been noticing more groups of tourists walking around. They stay here in apartments that are more affordable than those inside the walls of the old town. And I can't help but wonder: How long will it take for my neighborhood to change?

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The economic impact of the tourism industry in Spain

In 2012, Spain consolidated its third position in the world tourism ranking in terms of foreign visitors, and its second in terms of revenue. Tourism therefore appears to be considerably important for the economy as a whole, as further confirmed by a more thorough analysis of data on the sector. Nevertheless this is a highly seasonal industry, resulting in the extensive underutilisation of the resources available throughout the year. Let us look at the details.

In order to assess the overall role played by tourism in Spain's economic activity and employment we need to take into account both the direct or immediate effects and also the indirect or knock-on effects. The former are generated in the production units or companies that supply the goods and services acquired directly by tourists while the latter include the chain effects occurring in the rest of the economic system when the tourism industry demands production inputs and factors to be able to carry out its business. This capacity of an industry, in this case tourism, to lead to the development of other economic sectors by using the intermediate inputs produced by these sectors is called «total backward linkage» or the «diffusion effect». According to INE's symmetrical input-output table (2005), the total backward linkage index for the tourism sector is 1.68, a notable figure. 1 Consequently, if the tourism industry expanded by one unit, the final increase in production for the economy as a whole would be 1.68 units (the indirect effect would be 0.68). More specifically, according to this methodology the tourism industry's direct contribution to GDP was 6.5% in 2012 and, thanks to its knock-on effect, its total contribution reached 10.9%.

On the other hand, the trend in tourism business also has significant impact on the labour market as the industry is labour-intensive. According to data provided by the INE's Tourism Satellite Account, in 2012 employment in tourism exceeded 2.1 million people, accounting for 11.9% of all employment. Once again, not all employment was generated directly in the tourism industry per se; a proportion was created indirectly in other sectors. For example, according to the input-output table, if GDP in tourism increased by 1%, it would generate around 2,200 new jobs in the commercial sector and around 10.400 new jobs in the hotel and catering sector and would also create employment in other sectors less directly related to tourism (800 in agriculture and 680 in construction). As a benchmark, it should be noted that, historically, a 1% increase in tourism's GDP is usually related to an increase of approximately 3% in overnight stays, which in 2013 rose by 2%.

Tourism therefore has a huge effect on economic activity and employment. However, Spain's large share of «sun, sea and sand» tourism means that the industry is markedly seasonal throughout the year, in turn resulting in the considerable underutilisation of tourism infrastructures. Nonetheless, other countries that offer a similar type of tourism, such as Italy, are even more seasonal, as can be seen in the corresponding graph. The data also show that, in spite of a considerable rise in the total number of tourists over the last few decades, this pattern has remained very stable. The seasonal nature of tourist service production also extends to the labour market, with employment being more concentrated in the summer months.

There can therefore be no doubt that Spain's tourism industry is still highly seasonal and it comes as no surprise that one of the seven priority objectives set by the Secretariat for Tourism in the country's Comprehensive National Tourism Plan (2012-2015) was to develop specific measures to reduce this feature. 2 With the aim of deseasonalising the flow of tourists as much as possible to avoid both the levels of congestion in the high season (June to September) and also the under-utilisation of resources (facilities and people) in the low season, among other initiatives, the Secretariat asked AENA to introduce a flexible tariff system based on the number of passengers and the capacity of each airport. As commented in the article in this Dossier entitled «Recipes for success in the tourism industry: different ways to reach the same destination», it would also be advantageous to boost the supply of tourism aimed at segments that are less seasonal, more profitable and have a high growth potential, characteristics all enjoyed by cultural tourism, for example.

In conclusion, the tourism industry is one of the Spanish economy's key sectors, both due to its direct impact and also to the considerable knock-on effect it has on the rest of the sectors. Moreover, given the good projections for global growth in tourism (as discussed in the article mentioned previously), it will probably become even more important in the coming years. We should take advantage of this to reduce the industry's extremely seasonal bias and thereby make better use of the infrastructures available.

Maria Gutiérrez-Domènech

European Unit, Research Department, "la Caixa"

1. For the calculation, tourism is divided into different sectors following the structure of tourism demand provided by Spain's Tourism Satellite Account (see the Tourism Balance for 2012 by the Institute of Tourism Studies), adapting it to the structure of the sectors in the input-output table.

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Vacationing at these destinations? You will pay tourist taxes, fees

There are a slew of places with tourist taxes or fees.

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Travelers may encounter a tourist tax or fee depending on their destination.

That additional travel cost could come up if a person visits one of the slew of places around the world that have such charges. Factors that spurred the taxes can vary, ranging from climate change to overtourism, according to reports.

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Five locales with tourist taxes or fees include:

Venice, Italy

Piazza San Marco square view from the Giudecca Canal, Venice, Veneto, Italy. (Photo by: Mauro Flamini/REDA&CO/Universal Images Group via Getty Images) (Mauro Flamini/REDA&CO/Universal Images Group via Getty Images / Getty Images)

The roughly $5.35 daily tourist access fee for Venice, home to the Rialto Bridge, Doge’s Palace and St. Mark’s Basilica, launched as a pilot on Thursday after it received the go-ahead from city officials in mid-September. It targets day-trippers coming into the city between 8:30 a.m. to 4 p.m. and is required on specific dates in April, May, June and July during the test period.

Mount Fuji and the Shinjuku skyline seen from an observation deck in Tokyo, Japan, on Tuesday, Dec. 26, 2023. Japan's industrial output in November is scheduled to be released by the Ministry of Economy, Trade and Industry on Dec. 28. Photographer: A (Akio Kon/Bloomberg via Getty Images / Getty Images)

International tourists can face an "International Tourist Tax" while exiting Japan, per the Japanese National Tax Agency . It amounts to about $6.30 per departure and must be paid by those taking planes or boats to do so.

Barcelona, Spain

BARCELONA, SPAIN - 2023/12/11: View of the Sagrada Familia, the largest unfinished Catholic church in the world which has been under construction for 144 years, and part of a UNESCO World Heritage Site. Its completion is estimated to be in 2026. (Pho (Xavi Lopez/SOPA Images/LightRocket via Getty Images / Getty Images)

While the city’s nightly tax for travelers staying at tourist accommodations has existed for quite some time, it went up at the beginning of the month, becoming about $3.47. It is capped at seven nights. Catalonia, the region where Barcelona is located, also has a graduated tourist tax that’s size is determined by one’s accommodation, according to The Points Guy.

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This photograph taken on January 10, 2024, shows a a residential area (L) on the banks of the Wang Chuu River also known as Raidak River flowing through Bhutan's capital Thimphu. (Photo by Money SHARMA / AFP) (Photo by MONEY SHARMA/AFP via Getty Imag (MONEY SHARMA/AFP via Getty Images / Getty Images)

Bhutan, nestled in the Himalayas in Asia, asks most tourists to hand over nightly Sustainable Development Fees of $100 for adults and $50 for ages 6-12. It charges a differently-priced fee from those coming from India. The money goes toward "various projects that create long-term, sustainable opportunities for the Bhutanese people," the country’s department of tourism website said. 

New Zealand

Buildings in Auckland, New Zealand, on Tuesday, Sept. 13, 2022. New Zealand is scheduled gross domestic product (GDP) figures on Sept. 15. Photographer: Fiona Goodall/Bloomberg via Getty Images (Fiona Goodall/Bloomberg via Getty Images / Getty Images)

New Zealand’s tourist tax, called the International Visitor Conservation and Tourism Levy, costs $35. Tourists encounter it during the visa application process. The country requires it for "most people entering New Zealand on a temporary basis" such as vacation and certain student and short-term work visas, according to the government. 

Tourism a boon for economy

Travel and tourism provides major benefits to local economies and the global economy alike.

Countries around the world will see travel and tourism produce $11.1 trillion in 2024, according to a report recently released by the World Travel & Tourism Council.

TRAVEL AND TOURISM TO BREAK RECORDS, BRING OVER $11 TRILLION IN 2024: REPORT

Part of that will include spending by international travelers. They will reportedly contribute $1.89 trillion, according to the WTTC.

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