The Consumer Price Index (CPI) in Spain rose 1% in April compared to the previous month and raised the yoy rate by two tenths to 1.5%, its third consecutive increase since February and its highest level since last November, according to the definitive figures published this Tuesday by the National Institute of Statistics (INE), which coincide with those advanced at the end of last month.
One of the key supports for Spain’s economic growth during the recovery has been the strength of international tourism. CaixaBank Research predicts 3.4% growth in tourism-related GDP in 2018, outperforming Spain ’s economy as a whole (2.8% growth). This excellent performance has helped to create jobs: in the four years between Q1 2014 and Q1 2018, 396,000 new jobs were created related to tourism.
The number of jobless people registered in the public employment services’ offices fell by 83,738 in May compared to the previous month (-2.5%). The total number of unemployed stood at 3.25 million end-May.
Spanish companies without any subsidies or bailouts have turned themselves around and transformed the former autarchy into a country decidely open to the overseas market.
Spain’s tourism industry has clocked up a new record. Funcas estimates that by year-end 81.5 million tourists will have visited the country, up 8.2% on 2016. Tourist spending will be around 87 billion euros, up 12% from a year earlier.
CaixaBank Research | Spain’s tourist sector is on course for another record-breaking year, with close to 50 million international visitors arriving on its shores in the first seven months of 2017, an 11.3% rise on 2016 and 49.4% higher than in 2010.
The tourism sector plays a very important role in the Spanish economy. And its prospects are positive looking ahead to the coming years, based on the different statistics available. That said, there are various elements which should make us reflect on whether the Spain’s tourism business is as well focused as it could be and if it is adapting easily to a changing reality.
Tourism spending in Spain in the month of July totalled 11.902 billion euros, up 16.3% from 2016 and, yet again, beating records. Accumulated spending for the year totals 49.119 billion.
I am the first one to say that we need to change the level of importance that tourism has in our economy, but the proportionate importance. Not get rid of the industry all together.