Spain is above the global average in its ability to attract long-stay tourism (i.e., more than a week). This type of tourist accounts for half of the national offer, with long-stay trips considered “more satisfactory” than short-stay trips. This is reflected in the ‘Study on the positioning of Spain as a tourist destination’ recently presented by the Real Instituto Elcano and Turespaña.
The latest data until October shows that Spain received 17.9 M international tourists in the first ten months of the year. Meanwhile, spending declined by 77.3%. On its part, Exceltur expected levels of tourism GDP and income from foreign tourism to fall by €106.16 Bn in 2020 down to €46.43Bn, equivalent to the levels of 1995.
Olga Cam and Mohammad Rajjaque via The Conversation | The travel and tourism industry is hopeful for a much faster recovery than other market segments. There are two reasons for this: first, there is a psychological demand for travel and holidays after a very long lockdown. Second, the availability of cash. The Airbnb IPO seems to be boldly positioned right at the expected beginning of the recovery in Europe and the improving market conditions encouraged last minute share issue price.
Icex (Invest in Spain ) | Spain is once again ranked first in Europe and third in the world in the Country Brand Ranking Tourism 2019-2020, which measures the appeal of the country brand of about 200 countries. The report points to possible threats to this position: Hong Kong has already overtaken Spain, while the “United Kingdom and Italy are approaching at a good clip”. The two latter countries appear to be the “two new international giants”, rising five and three places respectively in the world ranking.
Intermoney | There are important reasons for maintaining a prudent attitude with regard to the Spanish economy, situating its full recovery in the year 2023. This would mean that we would lose more than a decade of the fledgling 21st century. On the other hand, there are also reasons to hope the recovery will eventually take shape and not be too far off. These include the encouraging development of the COVID-19 vaccines, the decisive response from the ECB and the EU, and a lesser impact of the crisis than feared on large European partners and customers.
Dramatic. This is the best way to describe the decline of foreign tourism in Spain. The figures for international visitors between June and July showed that Spain has lost more than 16 M foreign tourists and over €19 Bn in tourist spending. In the month of July specifically – the first full month since the end of the State of Alarm – 2.46 M foreign tourists arrived in Spain, 75% less than in July 2019. Meanwhile spending stood at €2.45 Bn, down 79.5% from a year earlier.
Boris Johnson’s government will impose a 14-day quarantine on travellers from Spain in response to the surge in reported Covid-19 cases in our country. This decision has fuelled discontent both in the Spanish government and in the tourism sector. This means about 12% of GDP, with the British accounting for 20% of all tourists. Furthermore, the Spanish industry could lose foreign tourism revenues of €8.7 Bn between August and September, reports the Spanish tourist institution Exceltur.
James Reilly (Schroeders)| The current coronavirus crisis appears to be a rather potent cocktail of all three of these events: a viral epidemic more widespread than SARS, an economic downturn sharper than the GFC, and a fear of flying comparable to the aftermath of 9/11. This points to a trough far greater than the 45% downturn in international travel seen nine months into the GFC.
Bankia Estudios | None of the world’s major economies will avoid an annual contraction in GDP, with the possible exception of China, which could grow by a modest 1%, reported the institution. As for the Spanish economy, it has cut forecasts from the -8% estimated in April to -12.8%. For 2021, it estimates 6.3% growth , so that next year the level of GDP will still be 7.3% lower than in 2019 (4% in the previous revision). Spain’s worse performance is mainly due to the heavy weighting of tourism sector in GDP.
Last week the Spanish government presented its Tourism Promotion Plan, to which over 4.250 billion euros will be assigned, mostly in the form of credits. Of the total amount of aid earmarked for the tourism sector, one of the most affected by the coronavirus pandemic, 93%, or almost 4 billion euros, will be granted via loans. A further some 275 million euros will be granted in the form of direct transfers.