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Spain’s tourism surge faces growing challenges

  • Automatic
  • 6 May 2025
  • 2 minute read
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This article was written by Hospitality Today. Click here to read the original article

A new Phocuswright analysis predicts that the double-digit growth rate Spain has been experiencing will not be sustainable over the long term

May 6, 2025

Spain’s tourism industry saw unprecedented growth in 2024, breaking records for both international arrivals and traveler spending. A new analysis from Phocuswright attributes this surge to a combination of factors including robust tour operator performance, increasing high-speed rail options, and expanding luxury hotel infrastructure. While the economic impact is significant, with tourism now accounting for 13% of the country’s GDP, the boom has also sparked major concerns over overtourism, leading to protests and new legislative measures aimed at managing the pressure on housing and local communities.

Key takeaways

  • Record-breaking visitor numbers: Spain welcomed 93.8 million international visitors in 2024, a 10.1% increase from the previous year.
  • Economic impact: Visitor spending surged 16% to €126 billion, representing 13% of Spain’s GDP.
  • Tour operator growth: Tour operators led the travel segment with a 16% growth rate, driven by strong domestic economic performance.
  • Rail expansion: High-speed rail companies like Iryo and Ouigo grew gross bookings by 20% through service expansion into lower-density routes.
  • Luxury hotel boom: Spain saw increased investment from international hotel brands, with Madrid now second only to London in hotel investment across Europe.
  • Overtourism backlash: Cities like Barcelona, Malaga, and Alicante are taking legislative action to curb short-term rentals amid widespread protests over housing pressures.
  • Policy changes: Spain ended its golden visa program and is considering a 100% property tax on non-EU buyers to combat the housing crisis.
  • Forecast: Phocuswright warns that current growth rates are unsustainable. Stabilization is expected as inflation eases and external economic uncertainties, especially from the U.S., play out.
  • Geopolitical outlook: Improved stability in Eastern Europe and the Middle East could support continued tourism inflows.

Get the full story at Travelpulse and Phocuswright

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