The sector is the engine of the Spanish economy, contributing 72% of GDP growth in the third quarter
The months of isolation during the pandemic have increased the desire to travel, which has not been affected by the current situation of uncertainty, both geopolitical, marked by the war in Ukraine, and economic, due to the price crisis. This desire to go out has even surpassed the forecasts made by the tourism industry, highlighting the increase in last-minute sales, and has caused GDP to reach levels clearly higher than pre-dates. COVID-19. 2.7% more than in the third quarter of 2019, according to the quarterly report ‘Tourism Perspectives’ from Exceltur published this Tuesday.
In this way, tourism is once again the mainstay of the Spanish economy, responsible for 72.2% of the GDP recovery in the third quarter, with a contribution of 15,000 million euros in the third quarter of the 21,000 million advance.
However, the industry’s employers warned that operating results and margins have declined due to sharp increases in operating expenses, which have far outstripped expected costs. They increased by an average of 20%, with energy costs increasing by 32.8%, deliveries becoming more expensive by 18.1% and labor costs by 10.4%.
This contrasts with the more moderate rise in hotel prices, of 8.4%, increasing the cost differential by more than 10 percentage points.
Domestic demand has become more dynamic, while foreign demand, which behaved very positively in the spring, is losing momentum. However, a significant improvement in the level of spending is observed: it has increased by 11.8% per tourist, which is also due to the increase in inflation.
The biggest declines have been in Russian and Asian tourism, while the Scandinavian markets recovered, with almost 20% fewer overnight stays between July and August compared to the 2019 figures. Italian tourism and 4% German.
The Canary Islands and the Balearic Islands are again the destinations chosen by foreign travelers to enjoy Spain, as well as destinations on the Andalusian, Valencian and Catalan coasts such as Malaga and Alicante.
Exceltur believes that tourism GDP could reach €154,000 million for the whole of 2022, representing a 99.4% recovery from 2019 activity levels.
It will weigh on the fact that employers expect a slight slowdown of 1.3% at the end of the year compared to the same period in 2019, due to the fragile macroeconomic and geopolitical scenario expected for the coming months.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
