Spain’s hotel sector is on course to bounce back over the next three months following a harrowing two years, but a solid return to pre-pandemic occupation levels is still threatened by economic and safety concerns, industry leaders said.
“We’re seeing some good numbers with Spaniards keen to travel domestically and potential foreign visitors also signaling that Spain rates highly in their upcoming travel plans,” Jorge Marichal, the president of the Spanish Confederation of Hotels and Tourism Accommodations (CEHAT) told a press conference.
“In fact, foreigners’ intention to travel to Spain is now higher than it was at this same time in 2019 before Covid, and foreigners, along with Spaniards, want to make up for lost time after two years of travel restrictions because of the pandemic.”
CEHAT, which groups 51 regional hotel and hospitality associations across Spain representing a total of 16,000 properties, based its findings on a study carried out by consulting firm PwC that analyzed economic factors, hotel reservations, online hotel searches for the coming season, the attitudes of potential guests and other data.
Popularity Contest
According to the study, interest in holiday travel to Spain from major generating markets was highest in the Netherlands and the Scandinavian countries, followed by Germany, France, the United States and Italy.
However, interest among Britons, who make up the largest foreign market for Spain and whose annual visitor numbers hit 18 million before Covid, was the lowest.
“Our optimism is also based on findings showing that reservations of Spanish hotel rooms for the April, May and June period are at 35 per cent compared to just 9 per cent at this time a year ago,” Marichal said.
Beach resorts in the southern region of Andalusia and the Balearic and Canary Islands were the most popular among those booking their spring holidays early.
CEHAT Secretary General Ramón Estalella noted that it appeared potential hotel guests were waiting until the last minute to reserve their rooms for the spring and summer periods.
Perfect Storm
PwC’s Cayetano Soler, who prepared the study, struck a note of caution, saying the sector faced what he called “a perfect storm” because of rising interest rates, inflation, a drop in purchasing power in Spain and its principal travel markets, and the geopolitical uncertainty triggered by the war in Ukraine.
These concerns were apparently also fueling higher cancellation rates this year in comparison to the same period in 2019, although the figure is lower than in 2021.
“Our main worries include the current spike in energy and food costs which could not only impact travelers who will now have less to spend on their holidays, but also the bottom line for hotel owners and operators,” Soler said. “And the high interest rates certainly won’t help those hotels and chains seeking financing.”
“Also of concern is the possibility of another wave of Covid as the incidence rate of the virus in increasing in our most important markets like Britain and Germany.”
In a separate report, the Spanish travel industry lobbying group Exceltur, which represents not only hotels but also airlines, railroads, ferry operators and other tourism companies, said travel demand was promising for the upcoming Easter Week and beyond.
“This increase in demand is going to give us a good Easter Week with 90 per cent of activity of the same period in 2019,” said Exceltur Executive Vice-President Jose Luis Zoreda.
“This is thanks to domestic tourism which should reach the same levels as before the pandemic according to our members. But also key will be the strong return of foreign tourism which is predicted to be around 90 per cent of pre-pandemic levels in the second quarter,” he said.