Tourism remains on track in 2023, following a strong 2022, when the tourism sector recovered strongly after the COVID crisis.
In April, 7.2 million international tourists visited Spain, 18.5% more than in the same month of 2022 and also surpassing the comparable 2019 level for the first time.
In the first four months of 2023 the number of tourists visiting Spain increased by 32.4% and reached 21 million despite the global economy slow down.
The UK is the main outbound country with more than 3.9 million tourists visiting Spain representing an increase of 31% year-on-year. France ranks second with almost 2.8 million tourists and a 29.8% rise, and Germany third with almost 2.7 million tourists and a 17.7% increase.
The US stands out as the country with the highest visitors increase with 75.4% year-on-year growth.
The number of tourists choosing hotel accommodation grew by 28% while those in rental housing accommodation rose by 57% year-on-year. The number of tourists visiting and staying in their own dwelling increased by 28%.
The tourism rise is boosting real estate demand and is driving opportunities in the Spanish real estate market in the hotel and the housing sector.
Madrid, Barcelona and major tourist destinations such as the Balearic Islands are attracting most investment, especially in the luxury segment.
Mandarin Oriental Hotel Group has this year that it will manage a new beach resort on the island of Mallorca in Spain, the first resort in Europe under the Mandarin Oriental Brand. The new luxury resort, scheduled to open during the second half of 2024, is being developed by Blasson Property Investments.
Banyan Tree Group has signed a memorandum of understanding with La Quinta Real Estate Group to open Angsana Real de la Quinta Benahavis Marbella resort and residences in 2026. Located in the Mediterranean town of Benahavis near Marbella, the development will include a hotel, branded residences, apartments and commercial spaces. The property will mark the group’s debut in Spain.
Although macroeconomic uncertainty and the high cost of financing are slowing down the pace of institutional investment, interest in the Spanish market continues to be high.
In April a joint venture between AXA IM Alts, on behalf of its clients and Blasson Property Investments acquired the 5* Hotel Sofia in Barcelona from Selenta Group, Brookfield’s Spanish hospitality platform. AXA IM Alts plans a repositioning programme, following which the hotel will be operated by Hyatt International.
Spain continues to be one of the preferred destinations for international tourists with an increasing number of visitors. Therefore, it is not a surprise that investors maintain their confidence in the Spanish hospitality real estate market.