Costa News Spain Breaking News | English News in Spain.
The unquenchable demand for tourists to visit Spain is beginning to show in the hotel and hostel rates, which jumped 7% on an annual basis last month.
The average price for a room was almost 50% more expensive in May than in 2019. Data shows a steep rise in prices that is affecting both residents and holidaymakers.
Trend shows a steady rise since 2017, with only a slight dip in 2020, due to the COVID-19 restrictions on travel.
Prices have been soaring ever since, the latest 7% hike adding to a 46% rise in price since 2019.
READ MORE Spain is on course to receive 100 MILLION tourists this year – driving prices ever higher
Eurostat reports a 70% increase in tourists to Spain since 2021. This trend has continued to gain momentum.
Experts believe that a number of factors are driving the price increase.
As part of the government’s crackdown on housing shortages, there has been a limited amount of new hotel construction. Recent restrictions on Airbnb listings have also contributed to a lack in supply and increased costs.
Housing prices are rising in regions such as the Balearic Islands where tourism is responsible for almost half of the local economy, according to studies by the European Parliament.
READ MORE British tourists stuck in ‘third world hell’ at airport in Spain – in ‘taste of things to come when EES arrives
CaixaBank research predicts a 5% increase in tourism GDP in 2024. This economic boom is not without its challenges. As Travel and Tour World pointed out, mass tourism has been linked to rising property values that are a strain on both long-term residents and locals.
Spain has already set itself up to surpass last year’s tourist numbers and welcome 100 million visitors by 2025.
As of now, there is no sign that the upward trajectory will slow, leading many to ask how Spain’s tourism-driven economic system can be balanced with the needs and wants of its citizens.
Discover Tailor-Made Tours
Simply Holiday Bookings offers a wide range of personalized vacation experiences.
