Travel and Tourism - Spain

Euromonitor International's Travel And Tourism in Spain report offers a comprehensive guide to the market at a national level. It looks at travel accommodation, transportation, car rental, tourist attractions and retail travel. It identifies the leading companies and offers strategic analysis of key factors influencing the market, including background information on tourism inflows, disposable income, annual leave and holiday taking habits.

EXECUTIVE SUMMARY - Publication date: Nov-08

A top leading destination, but losing ground to China
In 2001, Spain overtook the US as the second leading travel destination in the world. The country has rapidly narrowed the gap with France since then. However, 2007 witnessed Spain losing its second place to China. The Asian country saw the number of incoming tourists double since 2000.

Tourism plays a key role in the Spanish economy, accounting for 11% of its GDP; a figure which is higher in tourist regions such as the Canary Islands and Balearic Islands. Spain has diversified its travel and tourism industry, and no longer focuses just on sandy beaches and sunny weather. Rural tourism in the countryside and city breaks are both trends reshaping the Spanish travel and tourism industry.

Shorter stays, fewer Euros spent
Both domestic tourists and incoming visitors are increasingly shortening the length of their stays in the country, and as a result reducing their expenditure in the country. However, the increasing number of tourists is so far making up for the decline in the average tourist expenditure.

High-speed train arrives
The extension of the high-speed train network in Spain is expected to have major implications in the Spanish travel and tourism market. The network already connects Andalusia, Madrid, Castilla, Aragón and Catalonia. The line has already had a profound impact, as it has drastically cut down journey times between many cities. Business travellers can visit their clients on day trips, and Spaniards can spend their weekends away visiting attractions in other cities. Air transportation is expected to suffer the most, as the high-speed train which connects Madrid and Barcelona in 2h40 directly competes with the most successful and profitable air shuttle service for the Spanish carriers. By 2020, it is expected that 90% of all Spaniards will live within 50km of a high-speed train station.

Urban tourism
Partly as a result of the urban facelift in most Spanish cities, and partly as a result of the increasing sophistication of tourist demands, cities are increasingly attracting visitors, who flock to their museums and historic buildings, instead of simply going to the beach. The boom of the low cost carriers operating flights to and from many regional Spanish airports also helped to increase the number of incoming visitors seeking city breaks in Spanish cities. Tourists are flocking to Barcelona, Madrid, Valencia, Seville, Saragossa and Bilbao, and not just the Mediterranean beaches.

Gloomy economic outlook ahead
The sudden slump in the Spanish housing market and the credit crunch are casting shadows over the Spanish travel and tourism industry. Overall, the industry is in reasonable shape to weather the financial storm. However, the economic slowdown will hinder not only the domestic market, but it is also expected to dent the economy of countries which are a key source of most of the incoming tourists which Spain receives every year. As a result, the travel and tourism industry is expected to slow down in the forecast period. Value sales will suffer the most, whilst the number of tourists is expected to continue rising.