Spending by foreign tourists in Spain has experienced a significant surge in recent months, but a substantial part of this increase can be attributed to rising prices, driven by the effect of inflation. According to the consultancy firm Braintrust, the average length of stay for foreign tourists has only increased by 2.69%, from an average of 6.97 to 7.16 nights.
The top countries contributing to tourist spending in Spain are the United Kingdom, Germany, and France, with the United States in fourth place. Braintrust’s data reveals that six Spanish regions account for a whopping 92% of foreign tourists’ spending, leaving the remaining regions with a meager 8%.
In its latest industry analysis, Braintrust notes that foreign tourist spending in Spain saw a remarkable 15.6% increase in July, matching the inflation rate recorded in Spain (+15.9%). Despite this spending increase, the number of trips taken by foreign tourists has decreased by 0.77% up to July compared to 2019. However, the average length of stay has grown from 6.97 nights in 2019 to 7.16 nights in 2023.
The primary driver behind the rise in foreign tourism spending, according to Braintrust, is the increase in prices. INE data indicates a price hike of 15.9% in July 2023 compared to July 2019. Consequently, total expenditure has risen to 59,864 million euros from January to July this year, up from 52,194 million euros in 2019, representing a 14.7% increase in total spending. This data contradicts the notion that higher-quality tourism would set new spending records in the year.
Regarding the average length of stay, Braintrust data shows an increase of only 2.69%, rising from 6.97 nights in 2019 to 7.16 nights from January to July this year. The United Kingdom remains the largest outbound market, although its average stay decreased by 5.86%. Germany saw a 3.60% increase, France increased by 2.35%, and the United States, the fourth-largest outbound market in terms of expenditure, experienced an 8.87% increase.
Among Spanish regions, there are notable differences in the average length of stay. Catalonia’s average stay decreased by 0.87%, the Balearic Islands saw a drop of up to 3%, Andalusia experienced a decrease of 0.47%, while the Canary Islands saw a slight increase of 0.09%. On the other hand, the average stay increased in the Valencian Community by 4.08%, with Madrid leading the way with an increase of 15.79%, going from an average of 5.10 nights in 2019 to 5.90 nights in 2023.
FOUR MARKETS ACCOUNT FOR HALF OF TRAVEL SPENDING IN SPAIN
Four major markets account for half of the expenditure in Spain: the United Kingdom with 18.23% of total foreign spending until July, followed by Germany (11.84%), France (8.55%), and the United States (7.73%). The expenditure is highly concentrated in specific Spanish regions, with Catalonia, the Canary Islands, the Balearic Islands, Andalusia, Madrid, and Valencia absorbing 92% of the income during the first seven months of the year, leaving only 7.42% of expenditure for the remaining eleven communities.
Catalonia leads the ranking with 11.55 million euros in revenue from January to July, closely followed by the Canary Islands with 11.39 million, the Balearic Islands with 9.74 million, Andalusia with 8.46 million, Madrid with 7.49 million, and the Valencian Community with 6.78 million. Other communities, such as the Basque Country, Galicia, and Murcia, follow at a distance in terms of expenditure.
