Despite difficult economic conditions across mainland Europe, Spain’s tourism levels are on the rise. Spain welcomed 7.6 million holiday makers in August, representing an annual increase of 9.4% and the highest level of visitor numbers since 2007 according to Frontur.
Tourism is a key industry sector that Spain’s government hopes will help boost their struggling economy. Banco Sabadell analyst Juan Rodriguez Rey commented, “There’s no doubt that tourism will give a boost,”
Spain’s tourism currently accounts for 11% of the country’s GDP and the government expects gross domestic product to grow by 1.3% in 2011.
Interestingly, The Times reported this week that Spain, according to the IMF, is the only country of Germany, France, Italy and Greece that will experience higher levels of growth next year compared with this year suggesting their economy is moving in the right direction, while the rest of Europe looks gloomy.
As Spain’s tourism sector improves, there is expected to be direct benefits for the country’s housing market with increased demand for holiday homes and prices inflated by premium holiday rentals.
Source: Reuters, The Times