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The price is a major factor. Credit: Juanpol/Creative Commons
Tourism professionals on the Costa del Sol are quietly worried: less tourists are arriving. This is not a problem that’s only localised or an illusion. According to the most recent data covering May 2025 there is a significant decline in foreign visitors, as well as overnight stays at hotels and holiday apartment. Holiday rentals also suffer: occupancy at the Costa del Sol decreased by 2.2 percent during the first half year, according the Andalusian holiday rental association (AVVA-Pro).
It is the first time since the pandemic that tourism has dropped in the Costa del Sol. Last year, the region was able to balance a drop in domestic tourists with a strong international demand. Even this foreign push will not be enough in 2025 to offset the impact.
The price of travel is a major factor in the decline. It is now cheaper for many Spanish tourists to travel abroad than to Spain. One regular visitor says, “I have been spending my summers at Torremolinos since 50 years.” But now, renting an apartment for a week is out of reach. Even with the cost for the plane, it’s cheaper to go to the Caribbean.
This paradox is seen across the nation
While Spain continues to attract record numbers of international tourists—and is on track to challenge France and the US for the global top spot—Spanish residents are increasingly priced out of holidaying at home. A study by Mabrian, reported by El País, found that spending a week in Mallorca now costs roughly the same as a trip to Bali. In fact, the total cost of flights and accommodation was €428.5 for Mallorca and €338.2 for Bali.
Even for an all-inclusive basic week, Mallorca’s Playa de Muro is more expensive than Punta Cana. According to the travel association Aviba, a holiday in Playa de Palma costs around €2,070 per person, while similar trips to destinations like Cabo Verde (€1,560) and Thailand (€2,400) come in significantly cheaper.
Price increases
This trend is not limited to the Balearic Islands. Many Spaniards are unable to afford the Costa del Sol and Costa Blanca, or the Canary Islands. A report by Destinia found that some national destinations, such as Menorca and Mojácar, now cost almost the same as holidays in the Riviera Maya or Punta Cana.
What is behind the price increase?
Mabrian reports that between 2021-2025, the cost of hotels could increase by up to 25,7% in Spain, while the price of flights can rise anywhere from 10% to 62.9%. According to the Spanish National Statistics Institute, (INE), accommodation prices have risen by more than 50% since the pandemic. The hoteliers claim that some of the increase is due to investment in improving the quality. However, the end result is local travellers being priced out.
In 2024, Spain welcomed 61.9 million foreign visitors, compared to 54.3 million Spanish residents travelling within the country—a stagnation for domestic tourism, while international figures rise. Even school groups, according to a report published recently, are choosing other destinations due to the high cost of traditional destinations like the Balearics.
Costa del Sol is the most obvious example, but this trend is a part of a larger national one.
