Spain’s tourism industry is almost back to pre-pandemic levels, with latest data showing the country attracted 9.1 million international in-bound visitors during July, equating to 92% of pre-Covid levels.
Economic analysis by ING suggests it will take another year for in-bound numbers to fully return to what they were before the Covid crisis halted the international tourism sector.
High levels of domestic tourism has cushioned the blow of dented international visitor numbers.
Certain areas – like the Canary Islands and Madrid – have already fully returned to pre-Covid levels. Employment levels have also recovered, with tourism posts accounting for half of all the new jobs created in Spain during the second quarter of the year.
However, ING has warned that Spain’s tourism recovery is at risk from mounting economic headwinds.
In its analysis, ING said: “As tourism is a key economic sector in Spain, contributing 14% of total GDP in 2019 according to the World Travel and Tourism Council, a continued recovery is a substantial factor underpinning economic growth. The uncertainty related to the war in Ukraine, rising inflation, and high energy prices continue to pose a risk to tourism recovery.”
“However, the sharp decline in consumer confidence shows that consumers are increasingly concerned about high inflation and may begin to cut back on their tourism spending. This will also weigh on international tourist arrivals, as one in three incoming tourists are from the UK and Germany, two countries that have been hit very hard by the energy shock,” ING added.
