High inflation hasn’t stopped the Spaniards’ wanderlust, who admit they’ve paid up to 20% more
Faced with the voices encouraging to take advantage of this summer as the fall will be complicated by inflation and the energy crisis, it seems the Spaniards have taken it literally. The hotels are fully booked and both the inland and coastal areas are in full swing. It’s hard to find a country house, an apartment or even an available camping spot if you don’t search well in advance, despite the obvious price increases.
For example, a night in an average hotel room is paid for almost 106 euros, an increase of 23% compared to the 86 euros it cost last year, according to the latest data from the INE for the month of June. and all indications are that the trend for July and August will be upwards due to a higher occupancy rate.
And the more demand, the more employment opportunities. The latest data from the EPA shows that the tourism industry contributed to half of all new jobs created in Spain in the second quarter (April to June). Employees in the sector are already close to 3 million, 13.5% more than last year and the pre-pandemic figures have also been exceeded. The unemployment rate in tourism is 8%, four percentage points below the average for the national economy.
The problem that many companies in the sector have encountered this summer is precisely the lack of staff, especially waiters. Many changed jobs during the pandemic, when their businesses had to close for nearly two years due to coronavirus restrictions, and now demand has soared that it is not easy to find enough staff to fill the positions. For this reason, recruitment was mainly concentrated in the areas with the highest influx of tourists, such as Catalonia, Andalusia, Madrid, the Canary Islands, the Balearic Islands and the Valencian Community, where 74.5% of employment is registered in the sector.
But inflation, which hit its highest level in decades at 10.8% in July, is driving the price of tourist services hired by Spaniards in search of cheaper alternatives. According to a Passport-Photo survey, 94% of travelers admit to spending more this year than they did last year for their vacation. Specifically, spending between 10% and 20% more to maintain vacation plans. For this reason, nearly nine in ten tourists (88%) say they are forced to look for a cheaper summer season ticket.
The data from the latest monthly consumption report in Spain by the financial company Revolut reflects a 4.3% increase in general expenditure in July compared to June, and a 30% increase compared to July last year. increasingly clear due to the limitations of the coronavirus. And, as usual in a month like July, the biggest spending increases have been concentrated in holiday activities. According to these figures, Spaniards spent 76% more than in June on housing.
By contrast, while overall travel expenses were up 13%, airlines were down 5% compared to June. One of the reasons is the strikes and lack of staff at European airports that have caused congestion at many of these airports, in addition to the increase in the price of airline tickets due to the increase in fuel. Travelers have opted for a different mode of transport such as the train, where spending increased by 9%, or the bus (11%).
INE data indicates that transport services have become more expensive (16.2% since July 2021). Hotels and restaurants increased by 7.6% and overall tourism and hospitality increased their prices by 7.2% in one year.
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.
