Spain’s economy has become so strong the international business magazine The Economist has given it the award for best performing rich-world economy in 2024, with tourism credited for helping drive the success.
The accolade was announced following data showing a 3.2 per cent increase in the country’s GDP last year, putting it far ahead of the traditional European powerhouses including Germany at -0.2 per cent, France with 1.1 per cent, Italy at 0.5 per cent and the UK with an expectation of 0.9 per cent.
Much of the economic success has been down to Spain’s strong tourism industry which welcomed 93.8 million visitors in 2024 and which means it is fast approaching the world’s most popular tourism destination France, which received 100 million visitors in the same year.
And while the UK authorities might appear to be intent on trashing their tourism offering through a combination of ramping up prices and cutting marketing funds, Manuel Butler, the director of the Spanish Tourist Office London said his government’s appreciation of the sector ensures it is taken seriously.
Manuel Butler added the record number of visitors last year generated revenues of €126.1 billion and he is predicting traveller numbers will hit new heights this year.
He said: “Tourism is hugely important to Spain, accounting for around 12.3 per cent of our GDP and as such, our government recognises its importance with a specific ministerial office.”
Butler said the minister of tourism and industry Jordi Hereu was appointed in November 2023 and is supported by a secretary of state for tourism Rosario Sanchez Grau who was appointed last year, while the government has long supported the industry, particularly in the wake of Covid.
Public investment
He added: “Under the government of Pedro Sanchez and in particular post the pandemic, Spain has invested a very significant sum of €3.4 billion in tourism, specifically in its recovery and resilience plan.
“This is focused on the objective of developing a more sustainable tourism for the future which will benefit tourists, locals and the destination alike.”
He argued that the autonomy he is granted in London means he can get to know the market, which is the largest to the country with 18.4 million in 2024, and meet its demands, beyond British people’s appetite for guaranteed sunshine and numerous flights to the country.
Butler said: “We work hard to keep our prices competitive so that all our key stakeholders continue to benefit from Spain’s success and most crucially pass these benefits on to our customers.”
And while a dedicated and well-funded approach has allowed Spain to drive considerable growth in tourism numbers, it also means the country can start preparing for the future.
Butler said: “Our world is changing and the environmental threats and challenges of today cannot be ignored if we want to continue travelling tomorrow.
“For a tourism giant like Spain, it is now our responsibility to lead the modelling of tourism towards a more environmentally and socially sustainable future.
“We can absolutely meet this challenge and take all our holidaymakers with us but it will require a degree of compromise from ourselves, our industry partners and our visitors.”
This backing also means Butler is working hard to address one of the key issues affecting Spain over the last decade and which has seen numerous protests by locals, overtourism.
He added: “It is inevitable that given Spain’s market leadership, like other popular destinations globally we are experiencing a certain degree of overtourism in our most popular cities and resorts.
“In my opinion this has been exacerbated by the tourism bounce back post pandemic and also the unregulated private rental market which has had an impact on the cost of living crisis.
“By working collaboratively with our industry partners and communicating effectively with our local communities and holidaymakers we can address overtourism but we need to be patient and understand each other.
“Our strategy to develop environmentally and socially sustainable tourism for the future is at the heart of how we address overtourism.”
While solutions are being developed, they will need to be in place soon as data released by various companies shows Spain’s popularity continues to grow.
Travel data firm ForwardKeys has released new figures showing that with Easter taking place from 18-21 April, more than a fortnight after last year’s, the market is responding with a 36 per cent increase in European flight searches for Easter year on year.
And with improved weather, the biggest number of searches are for sun and beach destinations, up 59 per cent at Easter 2025 compared to 2024 with shopping in second place following a 28 per cent boost.
Palma de Mallorca has been the biggest beneficiary with a 79 per cent increase in searches giving the biggest leap in share of searches with a 0.7 per cent percentage point increase to 3.1 per cent, beaten only by Istanbul at 3.7 per cent.
Staying domestic
Data released by aviation analysts OAG tells a similar story as it shows Spain is now the largest aviation market in Western Europe.
The numbers show that between April and October the country will be host to about 118 million departing seats, a 39 per cent increase on 2019 and putting it in first place ahead of the UK.
While 70 per cent of the seats are international they will still be bringing in foreign travellers while the number is a 15 per cent increase on 2019 figures.
Meanwhile, the remaining 30 per cent of seats are for the domestic market and show Spain’s enduring popularity as a holiday destination, especially when compared with rival European countries including Germany which is 55 per cent down for the summer domestic seats while France has dropped 24 per cent for the same period.
In addition, seven out of 10 of the largest domestic market routes are to Spanish islands with the largest, Barcelona to Palma, accounting for more than 1.8 million seats this summer, while Madrid to Tenerife North has seen the biggest growth over the last six years at 18 per cent.
OAG director John Grant said: “Spain is clearly benefitting from a number of islands that have a huge amount of accommodation that remain open all year round and that is a huge competitive advantage.
“Over time Spain’s tourism sector has successfully worked with airlines to promote new route group and it is now reaping the benefits of all that effort.”