France Maintains its Status as the Most Visited Tourist Destination, while Spain Surpasses in Tourist Expenditure
In the vibrant landscapes of Spain, a tension has been brewing over the past few years. The nation, known for its sun-drenched beaches and rich culture, has seen a significant rise in housing shortages, with locals complaining they have been priced out of the market by tourists.
This trend is not unique to Spain. France, the world's most popular tourist destination since 2016, outside the pandemic period, also faces the challenge of accommodating millions of visitors each year. However, Spain stands out in terms of tourist spending. According to the World Tourism Organisation, Spain attracts higher tourist spending than France primarily because tourists in Spain spend more on average per day and tend to stay longer, despite Spain generally having lower overall costs for tourists.
In 2023, tourists in Spain spent €126 billion, an increase from €108 billion in the previous 12 months. This surge in tourism revenue has intensified demand in the housing market, contributing to rising prices and reduced availability of homes for permanent residents in key regions like the Costa Blanca, Canary Islands, Catalonia, and Madrid.
The surge in tourism-related demand has been linked to high demand for short-term tourist rentals and investment properties. This dynamic is partly due to the tourism boom driving demand not just for hotels but also secondary homes and rental properties.
As a result, anti-tourism protests have occurred in some areas of Spain, with locals expressing their concerns about the impact of tourism on their communities. Jordi Hereu, the Minister of Tourism in Spain, acknowledges the challenges and is working towards finding a balance between tourism growth and preserving the quality of life for locals.
Looking ahead, Spain's visitor numbers are predicted to continue growing, with 95 million visitors expected in 2024. This influx of tourists is expected to boost the country's tourism income, with total spending by tourists predicted to be €200 billion in 2024.
While France had 98 million tourists in 2023, retaining its position as the world's most popular tourist destination, it is interesting to note that approximately 70% of French tourism is made up of domestic tourists. This suggests that while Spain may have a higher concentration of foreign tourists, both countries face challenges in managing their tourism sectors to ensure a balance between economic growth and the well-being of local communities.
In conclusion, Spain's higher tourist spending compared to France results mainly from longer stays and higher per-day expenditure by visitors, even though costs are lower. This surge in tourism revenue has intensified demand in the housing market, contributing to rising prices and reduced availability of homes for permanent residents in key regions. As both countries navigate this complex issue, finding a balance between economic growth and the well-being of local communities will be key to ensuring a sustainable tourism industry.
Tourists in Spain's increased spending on housing, primarily concentrated on short-term rentals and investment properties, has contributed to rising prices and a housing shortage. This issue, intertwined with lifestyle changes, has led to anti-tourism protests in some regions, expressing concerns over the impact on local communities.
In the pursuit of a balance between tourism growth and local quality of life, finance plays a crucial role in housing affordability, impacting the overall lifestyle of permanent residents in popular tourist destinations.
