Tourism in Spain: recovery in the first quarter of 2022
The year 2020 was very difficult for every sector, particularly holiday lets. The start of the Covid-19 pandemic brought global tourism to a halt. In countries such as Spain, where tourism is vital to the national economy and property owners, the impact was even more painful. However, good news was becoming increasingly common.
GROWTH IN TOURISM
According to Spain’s National Statistics Institute (INE) and the figures published the previous week, visitor numbers that March exceeded four million, compared with fewer than half a million tourists in 2021. Tourist spending also rose by 832%, to 5,069 million, compared with the same month a year earlier.
During the first quarter of 2022, the easing of restrictions coincided with a recovery in international arrivals. Comparisons with 2021 must take account of the low level of activity in the reference period, which was still affected by the pandemic.
The 2022 rebound signalled recovery after an exceptional period. National figures alone did not demonstrate that every destination or accommodation business had returned to 2019 levels.
RISING COSTS.
The downside to the tourism upturn was high inflation and rising costs. Tourism businesses, like the rest of the country, were experiencing substantial increases in input prices. According to the Spanish Confederation of Hotels and Tourist Accommodation, energy costs had risen by up to 20%.
Higher operating costs for tourist accommodation had led to a corresponding increase in rental prices. This chain of cost and price increases ultimately affected consumers. According to the INE tourist expenditure survey, average daily spending in March was 157 euros, with British and German visitors allocating the largest budgets to tourism.
The near-return to pre-pandemic normality was welcome news. Tourism’s revival, the reopening of borders and greater freedom to travel offered fresh encouragement for holiday apartment owners.
Our recommendation at the time, to make the most of the opportunity in the coming months and summer season, was to work with a holiday let management company.
To apply a tourism trend to an individual property, review demand at the destination, the calendar, pricing and costs. A commercial strategy should be checked against actual bookings and adapted to the property; national growth does not guarantee individual occupancy or profit.
How to read this report today
Use this report to understand the context of 2022. If you are making a decision now, consult the latest comparable period from the statistical source and data for your destination. Distinguish tourist arrivals, overnight stays, occupancy and revenue: they are different measures.
