Tourism in Spain still blooming

The steady rise in prices during the last few years is mainly due to the fact that demand remains high. Foreign real estate investment was at a record high of €6,000 million in 2002, influenced by the introduction of the Single European Currency.

The steady rise in prices during the last few years is mainly due to the fact that demand remains high. Foreign real estate investment was at a record high of €6,000 million in 2002, influenced by the introduction of the Single European Currency. The outlook for this year is also very positive, after the first quarter, €1,700 million came flooding into Spain.

A major factor for the property demand is the fact that 52 million foreign tourists a year come to Spain. Up until May of this year, there has been a rise in the amount of tourists coming to Spain by 3.6% (to 17.8 million) thanks to the strength of the British market. On the other hand, German tourism is suffering due to a downturn in the economy.

For sure, tourism is moving away from hotel accommodation, illustrated by the fact that during the first five months of the year, 20% of tourists opted for free accommodation with friends or family.

In short, the two main sectors of Spanish economic activity, tourism and real estate, are keeping the Spanish economy at a high level compared to the ups and downs of other countries.

 Source: El Pais Andalusia  

Diana Morales, 17 Jul 2003 - Intelligence