Spain's Record Tourism Boom Boosts Economy: Analysis by Top Investment Manager Belén Carreño and Maria Martinez
Spain welcomed a record 10.9 million tourists in July, marking a 7.3% increase from last year. The tourists' spending also surged by 12%, fueling the Spanish economy's robust growth when compared to other European countries. Data from the National Statistics Institute revealed that foreign visitors spent 18.6% more in the first seven months of 2024, reaching 71 billion euros ($79 billion).
The significant growth in tourism, led by British and German visitors, is projected to drive Spain's GDP growth to 2.4% this year, surpassing the euro zone and Germany's forecasted growth rates. Despite a slight decline in Germany's domestic consumption, German tourists increased their spending in Spain by nearly 10%, with Britons also spending 7.5% more.
Chief economist Raymond Torres noted that Spain's services sector is more competitive than Germany's, with a global trend towards increased travel spending. This shift is evident in tourists like Hauke Prigge, a communication coach from Berlin, who has visited Spain multiple times this year and spent more than usual on each trip.
While German tourism to Spain experienced a decline post-2017 peak, recent data points to a resurgence, especially in flight bookings for September. Many Germans are now exploring different regions within Spain, moving beyond the Balearic Islands to destinations like Catalonia and Valencia.
Overall, Spain's booming tourism industry is not only driving economic growth but also reshaping consumption patterns and preferences among tourists, indicating a positive outlook for the country's economy and potential investment opportunities.
