Panic in Spain as Tourist Numbers Fall Short of Expectations
Spain’s tourism sector is experiencing a slowdown, raising concerns about its contribution to the nation’s economic growth.Industry group Exceltur reported a 2.8% increase in sales across hotels, airlines, restaurants, and related businesses during the peak summer season - a significant drop from the 6.3% growth seen during the same period last year. This deceleration is prompting revised forecasts for the remainder of the year.
The downturn is linked to decreased spending from key tourist demographics, including visitors from Germany, France, Turkey, and the United States. While arrivals from Britain (representing 26.5% of total visitors), China, and Poland offered some counterbalance, they weren’t enough to maintain previous growth levels.Domestic tourism remained stable.
Exceltur now projects a 2% rise in sales for the fourth quarter and anticipates overall tourism-related activity will grow by 2.8% in 2024, down from a July projection of 3.3% and considerably lower than last year’s 5.5% expansion. The sector is expected to contribute 13.1% to Spain’s gross domestic product this year, a reduction from the earlier estimate of 13.5%.
Despite a 3.9% increase in tourist arrivals through August, reaching 66.8 million, Spain may fall short of the 100 million tourist benchmark previously projected by the World Travel and Tourism Council. Spanish Tourism Minister Jordi Hereu acknowledged this possibility but expressed it wasn’t necessarily a cause for alarm, citing continued growth in tourist spending.
The situation has reportedly led to some businesses offering staff time off during the typically busy month of July,indicating a tangible impact on operations. Exceltur Vice President Oscar Perelli stated that tourism is “no longer the main dynamiser of the Spanish economy” and will likely not significantly outpace the country’s overall economic growth forecast of 2.6%.