The tourism industry in Spain has seen a significant increase in foreign visitors, with three consecutive records being set in 2023, during Semana Santa, and in the first quarter of 2024. In response to this surge in tourism, hotel prices have also increased, making staying in a hotel room a luxury not only during the summer months but also in the off-peak seasons when prices are traditionally more affordable. The average price of a hotel room in Spain reached 135 euros in the first quarter of 2024, which is a historic high for this period and a 12% increase compared to the same period in 2023. This data was collected from a survey of 1,200 hotels with a total of 150,000 rooms conducted by Cushman & Wakefield and STR.
The increase in prices can be largely attributed to the situation in the Canary Islands, where protests against mass tourism have been ongoing and where the average rate per room has risen by 16.7% to 171 euros, the highest among all the destinations studied. The most significant price increase was recorded in Malaga, with a 21.9% annual rise, followed by Bilbao with an 18.8% increase. Despite the strong demand, it is expected that there may be a moderation in price increases in the coming months, without the influence of Semana Santa. The positive news is the improvement in off-peak seasons, indicating a trend towards reducing seasonality in many destinations. Bruno Hallé, a partner at Cushman & Wakefield Hospitality in Spain, highlighted this trend and the potential for further price increases in 2024.
In addition to rising prices, revenues per available room (Revpar) – the key profitability indicator for the hotel industry – have also reached a record high. In the first quarter of 2024, Revpar grew by 17.1% to 92.1 euros, another historic high for this period. Once again, the Canary Islands stood out with revenues reaching 144 euros per room, significantly higher than Barcelona (107.3) and Malaga (104.7). Albert Grau, another partner at Cushman & Wakefield Hospitality in Spain, expressed optimism for the sector’s profitability in 2024 based on the positive trends observed in the first quarter and the upcoming summer season. He also emphasized the importance of effective operational management in maximizing resources to ensure a positive outlook for the industry.
The outlook for the Spanish tourism industry in 2024 is promising, with strong demand and record-high prices and revenues in the first quarter indicating a positive trend for the year ahead. Despite concerns about the impact of mass tourism on destinations like the Canary Islands, the overall profitability of the industry is expected to remain high. Efforts to reduce seasonality and optimize operational efficiency will be crucial in sustaining this positive momentum and ensuring a successful year for the hospitality sector. As the demand for travel continues to grow, it will be important for the industry to adapt and respond effectively to changing market conditions in order to maintain its competitive edge and capitalize on the opportunities presented by the current tourism boom in Spain.
