Spain’s tourism sector is set to grow further

Subject

Outlook for Spain’s tourism industries.

Significance

Last year witnessed a boom in tourism in Spain, with receipts on the current account reaching a record 42.6 billion euros (44.9 billion dollars) to the end of the third quarter (6% up year-on-year). However, pressure at peak periods on infrastructure and the natural environment, rising prices, the difficulty of sustaining contrasting tourism products and overcapacity in some markets exposed weaknesses.

Impacts

• Competition will drive innovation in both tourism products and their delivery.
• It will also push Spanish tourism companies into further differentiating their products and strengthening their international operations.
• There is large potential in markets outside Europe, especially in the rapidly expanding Asian market.
• Infrastructure improvements may become more feasible as the economy continues to grow, and if the government loosens its austerity stance.