The hotel industry in Spain continues to benefit from the massive influx of foreign tourists. In August, the number of overnight stays in hotel establishments reached a record high, growing by 2.6% and reaching nearly 48 million stays. This was the highest number of stays in a single month since data collection began in 1999. The strength of the demand from foreign visitors played a significant role, with 30.5 million stays in hotels and an annual increase of 4.9% in August. In contrast, domestic tourism showed some weakness, with a decrease of 1.3% and 17.3 million stays, compared to 17.5 million in the same month in 2023. This trend in August is consistent with the first eight months of 2024, where overnight stays increased by 5.6% annually.
The growth in overnight stays was driven by foreign tourists, whose stays increased by 8.9%, while domestic travelers experienced a 0.3% decline. This divergence can be attributed to the rising room rates, which reached a peak in August at nearly 147 euros per room per night, a 7.3% increase from the previous year. These prices may be affordable for tourists from the UK, Germany, and France, but may be out of reach for many domestic travelers, who may have opted to reduce the number of stays or seek alternative accommodations. The top three markets for foreign tourists to Spain were the UK, Germany, and France, with the UK accounting for 25% of total stays, followed by Germany at 16% and France at 12.3%. Italy secured the fourth position with over two million stays, while Portugal and Belgium showed significant growth rates of around 10%. Outside the EU, the US performed well with a 17% increase, nearing the one million stay mark.
The decline in overnight stays by domestic tourists was widespread across the six most visited regions, with the exception of the Canary Islands, which saw an increase in stays by Spanish residents. In Catalonia, the Balearic Islands, Andalusia, Madrid, and the Valencian Community, there were significant declines in domestic stays, but strong growth in foreign tourism helped these regions finish August with positive overall stays. The main takeaway from the August statistics is the sharp increase in profitability for the hotel industry, measured by revenue per available room (Revpar). In August, this indicator rose by 8.5% annually to 117.4 euros, with the Balearic Islands standing out with an average profitability of 178 euros per room. Madrid saw the most significant relative growth, with 66.05 euros and an 18.6% increase.
In conclusion, the hotel industry in Spain experienced a record number of overnight stays in August, driven by strong demand from foreign tourists. The divergence between foreign and domestic tourism can be attributed to rising room rates, which may be more affordable for international visitors. The top markets for foreign tourists were the UK, Germany, and France, while regions like the Balearic Islands and Madrid saw significant increases in profitability. Overall, the industry’s performance in August reflects the ongoing trend of growth in foreign tourism and challenges in the domestic market.
