Economic performance and outlook for 2024

Vacation markets in Spain have outperformed their pre-pandemic performance, with international destinations leading thanks to a lower economic impact. Demand is forecast to remain strong in 2024, with expectations of an all-time record in bookings for the summer season. In addition, hotel occupancy and revenue per available room (RevPAR) have shown steady increases, driven by a rise in average daily rate (ADR).

Structural evolution of the market

The Spanish tourism market is evolving structurally, with a reduction in seasonality in international destinations, attracting visitors throughout the year. However, domestic destinations still show peaks of travel in the summer months. The entry of international brands into the market is encouraging a focus on acquisitions and expansions, rather than new construction projects.

Investor interest and new developments

Investment interest in Spanish holiday destinations remains high, despite increasing competition in the Mediterranean. High development costs are leading investors to focus on established destinations capable of hosting large-scale developments. The Costa de la Luz, Costa de Valencia and Costa Brava stand out as hot spots for investment, with significant transactions expected in the coming year.

Growth and competitiveness in the Mediterranean

Spain remains a tourism giant in the Mediterranean, with more than 347 million overnight stays in 2023, surpassing countries such as Italy and Greece. Internal connectivity and multimodal accessibility are key factors in the continued success of Spanish tourism destinations.

The Christie & Co report highlights that despite geopolitical challenges, rising interest rates and inflation, the Spanish tourism sector continues to grow and diversify. With a creative approach to development and a careful review of market conditions, Spain is well positioned to continue to lead global tourism.