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Why are fewer American tourists visiting Spain this summer?
Why are fewer American tourists visiting Spain this summer?

Local Spain

time03-07-2025

  • Business
  • Local Spain

Why are fewer American tourists visiting Spain this summer?

American tourism in Spain is slowing down after a strong post-pandemic period, causing experts to worry that the shortfall may negatively impact the Spanish economy in 2025. According to a recent tourism sector report by CaixaBank Research, titled Uncertainty and American Tourism, it is estimated that the downturn could hit Spain's tourism GDP growth by as much up to one percentage point this year. In a context in which the travel industry is slowing overall, going from 6 percent in 2024 to 2.7 percent, in 2025, the slowdown in the American market stands out as a 'relevant' factor to take into account in terms of the Spanish market, according to the bank's findings. The report points to several possible explanations, including a weaker dollar and global economic instability caused by President Donald Trump's trade policy as possible reasons causing Americans to stay home. 'The appreciation of the euro against the dollar, the slowdown of the U.S. economy, and an increase in political and economic uncertainty appear to be behind this change in trend,' the report states, pointing to November 2024, when Donald Trump returned to the White House for a second term, as a turning point in the longer-term trends. However, it should be noted that the 'slowdown' refers to tourism growth among Americans going from exceptionally fast to slower but still growing overall. 'Passenger arrivals from the US slowed abruptly, going from 17.5 percent year-on-year growth in the first 10 months of 2024 to just 2.3 percent between November 2024 and May 2025,' the report says. American tourists in Spain spend well above average for foreign tourists in the country. Last year, they accounted for 4 percent of the nearly 94 million foreign tourists but 7.1 percent of overall spending. In cities such as Barcelona, they already represent a large group of foreign travellers, although their prominence has been growing across the country in recent years: since 2019, arrivals of Americans travellers increased by 28.3 percent, compared to 12.3 percent of total international arrivals. However, CaixaBank points out that spending with US bank cards in Spain has gone from growing by 17 percent year-on-year between January and October 2024 to falling by 2.2 percent between November of that year and May 2025. In contrast, total spending with foreign cards slowed more moderately, with an increase of 11.1 percent between January and October 2024 to 8.5 percent between November and May. The research also identifies the areas of Spain most affected by a drop in American visitors, pointing to an urban preference among tourists coming from the States: 'If we breakdown Spanish municipalities into urban (more than 30,000 inhabitants) and rural, and between coastal and non-coastal, we observe that the influence of American tourism is particularly significant in non-coastal urban municipalities (14.7 percent), around Barcelona and Madrid, according to the latest analysis by Turespaña. In rural municipalities, both coastal and non-coastal, the influence of American tourism is slightly above 4 percent.' Nevertheless, David César Heymann, economist at CaixaBank Research and author of the report, points out that the number of American travellers to Spain grew much more in 2024 than in Europe as a whole (22.3 percent compared to 7.3 percent), which is why the slowdown is now more pronounced. From January to April this year, Spain received 25.6 million international tourists, 7.1 percent more than in the same period in 2024. Year-on-year growth at that time was much higher, at around 18 percent. Average spending per tourist, an indicator used to measure the value of visitors, has barely increased by 2 percent in the first four months of the year, well below the 7.1 percent increase experienced last year.

Indians avoid Spain travel amid soaring rentals, locals' ire
Indians avoid Spain travel amid soaring rentals, locals' ire

Time of India

time22-06-2025

  • Time of India

Indians avoid Spain travel amid soaring rentals, locals' ire

Spain is facing backlash from locals due to mass tourism, leading to accommodation shortages and increased prices. Consequently, Indian travelers, particularly budget-conscious ones, are shifting towards more affordable European destinations like Georgia and Romania. While overall Indian tourist numbers to Spain grew in 2024, recent booking data indicates a decline, though luxury travel remains strong. Tired of too many ads? Remove Ads 'Lot of Planning Needed Now' Tired of too many ads? Remove Ads During her spring break, an Indian MBA student enrolled in a top Spanish business school had planned to explore the Basque countryside, a quiet getaway after months of rigorous coursework. But just days before the trip, her charming bed and breakfast in San Sebastián got abruptly cancelled. With prices for alternative accommodations skyrocketing and options limited, she stayed back in Madrid and settled for local Spain grapples with protests against mass tourism, anecdotes like this one are coming up frequently this year. The Spanish government recently ordered Airbnb to take down more than 66,000 rental listings that failed to comply with regulations, particularly those that didn't clarify ownership, while a Madrid court called for the immediate removal of 5,000 such listings. These moves follow mounting protests across major cities like Barcelona and Seville where locals say tourism is pricing them out of tension is now echoing back to India's outbound travel industry, with data indicating a noticeable shift away from Spain, particularly among value-conscious and mid-range Indian travellers. According to the latest data from Turespaña, Spain's national tourism board, more than 226,000 Indian tourists visited the country in 2024, growing over 60% from 2022. The increasing negative sentiment and hostility towards tourism may now weigh on the growth, say travel industry insiders.'Spain has always been a favourite for Indian travellers, but over the past year, we've seen a noticeable shift,' said Tavleen Bhatia, chief marketing and revenue officer at travel services company Cleartrip. 'This year, pre-monsoon season, bookings to Spain dipped by 32%.'Indian travellers are broadening their European bucket list and are increasingly turning to destinations like Georgia, Romania, Serbia and Sweden for their rich culture and more affordable experiences, Bhatia factors may also be affecting the shift in traveller intent. 'The numbers this year have been a bit muted. That can be attributed to multiple factors, like changing preferences or less disposable income to spend,' said Rajiv Mehra, general secretary of the Federation of Associations in Indian Tourism and also explained the hostility faced by tourists in Spain. 'Accommodation has become an issue of prioritising locals over tourists. Locals view tourists as the prime cause of increased rentals, and they find it unaffordable. The whole issue sprang from there. Tourists avoid those destinations where they feel unwelcome by the locals.'The lack of affordable accommodation options is also being felt. Hari Ganapathy, co-founder of customised tour package provider Pickyourtrail, said: 'A holiday in Spain now requires much earlier planning, primarily due to the limited availability of accommodations, which has become a more prominent issue recently.'The well-heeled, however, are still finding their way to the Iberian Peninsula with enthusiasm. According to SOTC Travel president SD Nandakumar, even with a 7-10% increase in tour pricing this year, 'Spain continues to witness strong interest from our customers.'The average 9N/10D itinerary is now priced around `2.9 lakh per person. Travellers are booking personalised holidays that include winery tours in La Rioja and Ribera del Duero, football stadium visits in Madrid and Barcelona, and nightlife experiences in Ibiza. There has also been a shift in where and how people travel.'There's a clear uptick in demand for boutique hotels, luxury villas and heritage stays, reflecting the intent to slow down and explore more deeply,' he Thomas Cook (India), per-person spends for Spain range from 2 lakh to 3 lakh, often with bookings in 4- to 5-star hotels or even luxury resorts. Rajeev Kale, president, Thomas Cook (India), said, 'Interestingly, we are witnessing shorter booking windows — approximately 1.5-2 months in advance, aligning with faster visa processing times.'According to Kale, emerging locales like Málaga and Costa del Sol in Andalusia, Ronda and Segovia are gaining traction.

Spain's BNB bust: Why Indian tourists are ditching tapas for Taj Mahal tours
Spain's BNB bust: Why Indian tourists are ditching tapas for Taj Mahal tours

Time of India

time22-06-2025

  • Business
  • Time of India

Spain's BNB bust: Why Indian tourists are ditching tapas for Taj Mahal tours

During her spring break, an Indian MBA student enrolled in a top Spanish business school had planned to explore the Basque countryside, a quiet getaway after months of rigorous coursework. But just days before the trip, her charming bed and breakfast in San Sebastián got abruptly cancelled. With prices for alternative accommodations skyrocketing and options limited, she stayed back in Madrid and settled for local sightseeing. As Spain grapples with protests against mass tourism, anecdotes like this one are coming up frequently this year. The Spanish government recently ordered Airbnb to take down more than 66,000 rental listings that failed to comply with regulations, particularly those that didn't clarify ownership, while a Madrid court called for the immediate removal of 5,000 such listings. These moves follow mounting protests across major cities like Barcelona and Seville where locals say tourism is pricing them out of housing. That tension is now echoing back to India's outbound travel industry, with data indicating a noticeable shift away from Spain, particularly among value-conscious and mid-range Indian travellers. According to the latest data from Turespaña, Spain's national tourism board, more than 226,000 Indian tourists visited the country in 2024, growing over 60% from 2022. The increasing negative sentiment and hostility towards tourism may now weigh on the growth, say travel industry insiders. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo 'Spain has always been a favourite for Indian travellers, but over the past year, we've seen a noticeable shift,' said Tavleen Bhatia, chief marketing and revenue officer at travel services company Cleartrip. 'This year, pre-monsoon season, bookings to Spain dipped by 32%.' 'Lot of Planning Needed Now' Indian travellers are broadening their European bucket list and are increasingly turning to destinations like Georgia, Romania, Serbia and Sweden for their rich culture and more affordable experiences, Bhatia said. Live Events Other factors may also be affecting the shift in traveller intent. 'The numbers this year have been a bit muted. That can be attributed to multiple factors, like changing preferences or less disposable income to spend,' said Rajiv Mehra, general secretary of the Federation of Associations in Indian Tourism and Hospitality. He also explained the hostility faced by tourists in Spain. 'Accommodation has become an issue of prioritising locals over tourists. Locals view tourists as the prime cause of increased rentals, and they find it unaffordable. The whole issue sprang from there. Tourists avoid those destinations where they feel unwelcome by the locals.' The lack of affordable accommodation options is also being felt. Hari Ganapathy, co-founder of customised tour package provider Pickyourtrail, said: 'A holiday in Spain now requires much earlier planning, primarily due to the limited availability of accommodations, which has become a more prominent issue recently.' The well-heeled, however, are still finding their way to the Iberian Peninsula with enthusiasm. According to SOTC Travel president SD Nandakumar, even with a 7-10% increase in tour pricing this year, 'Spain continues to witness strong interest from our customers.' The average 9N/10D itinerary is now priced around `2.9 lakh per person. Travellers are booking personalised holidays that include winery tours in La Rioja and Ribera del Duero, football stadium visits in Madrid and Barcelona, and nightlife experiences in Ibiza. There has also been a shift in where and how people travel. 'There's a clear uptick in demand for boutique hotels, luxury villas and heritage stays, reflecting the intent to slow down and explore more deeply,' he said. At Thomas Cook (India), per-person spends for Spain range from 2 lakh to 3 lakh, often with bookings in 4- to 5-star hotels or even luxury resorts. Rajeev Kale, president, Thomas Cook (India), said, 'Interestingly, we are witnessing shorter booking windows — approximately 1.5-2 months in advance, aligning with faster visa processing times.' According to Kale, emerging locales like Málaga and Costa del Sol in Andalusia, Ronda and Segovia are gaining traction.

Spain's BNB bust: Why Indian tourists are ditching tapas for Taj Mahal tours
Spain's BNB bust: Why Indian tourists are ditching tapas for Taj Mahal tours

Economic Times

time22-06-2025

  • Business
  • Economic Times

Spain's BNB bust: Why Indian tourists are ditching tapas for Taj Mahal tours

'Lot of Planning Needed Now' Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel During her spring break, an Indian MBA student enrolled in a top Spanish business school had planned to explore the Basque countryside, a quiet getaway after months of rigorous coursework. But just days before the trip, her charming bed and breakfast in San Sebastián got abruptly cancelled. With prices for alternative accommodations skyrocketing and options limited, she stayed back in Madrid and settled for local Spain grapples with protests against mass tourism, anecdotes like this one are coming up frequently this year. The Spanish government recently ordered Airbnb to take down more than 66,000 rental listings that failed to comply with regulations, particularly those that didn't clarify ownership, while a Madrid court called for the immediate removal of 5,000 such listings. These moves follow mounting protests across major cities like Barcelona and Seville where locals say tourism is pricing them out of tension is now echoing back to India's outbound travel industry, with data indicating a noticeable shift away from Spain, particularly among value-conscious and mid-range Indian travellers. According to the latest data from Turespaña, Spain's national tourism board, more than 226,000 Indian tourists visited the country in 2024, growing over 60% from 2022. The increasing negative sentiment and hostility towards tourism may now weigh on the growth, say travel industry insiders.'Spain has always been a favourite for Indian travellers, but over the past year, we've seen a noticeable shift,' said Tavleen Bhatia, chief marketing and revenue officer at travel services company Cleartrip. 'This year, pre-monsoon season, bookings to Spain dipped by 32%.'Indian travellers are broadening their European bucket list and are increasingly turning to destinations like Georgia, Romania, Serbia and Sweden for their rich culture and more affordable experiences, Bhatia factors may also be affecting the shift in traveller intent. 'The numbers this year have been a bit muted. That can be attributed to multiple factors, like changing preferences or less disposable income to spend,' said Rajiv Mehra, general secretary of the Federation of Associations in Indian Tourism and also explained the hostility faced by tourists in Spain. 'Accommodation has become an issue of prioritising locals over tourists. Locals view tourists as the prime cause of increased rentals, and they find it unaffordable. The whole issue sprang from there. Tourists avoid those destinations where they feel unwelcome by the locals.'The lack of affordable accommodation options is also being felt. Hari Ganapathy, co-founder of customised tour package provider Pickyourtrail, said: 'A holiday in Spain now requires much earlier planning, primarily due to the limited availability of accommodations, which has become a more prominent issue recently.'The well-heeled, however, are still finding their way to the Iberian Peninsula with enthusiasm. According to SOTC Travel president SD Nandakumar, even with a 7-10% increase in tour pricing this year, 'Spain continues to witness strong interest from our customers.'The average 9N/10D itinerary is now priced around `2.9 lakh per person. Travellers are booking personalised holidays that include winery tours in La Rioja and Ribera del Duero, football stadium visits in Madrid and Barcelona, and nightlife experiences in Ibiza. There has also been a shift in where and how people travel.'There's a clear uptick in demand for boutique hotels, luxury villas and heritage stays, reflecting the intent to slow down and explore more deeply,' he Thomas Cook (India), per-person spends for Spain range from 2 lakh to 3 lakh, often with bookings in 4- to 5-star hotels or even luxury resorts. Rajeev Kale, president, Thomas Cook (India), said, 'Interestingly, we are witnessing shorter booking windows — approximately 1.5-2 months in advance, aligning with faster visa processing times.'According to Kale, emerging locales like Málaga and Costa del Sol in Andalusia, Ronda and Segovia are gaining traction.

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