Tourism and real estate sector: a new era? ( 48,34 KB )

 

Development of residential tourist sector boosting construction boom

  At this very moment, millions of Europeans (mainly British and German) are weighing the possibility of spending their retirement in another country, a warmer country with a good living standard and where prices are reasonable. This is something normal in the United States where the state of Florida has become the destination of a vast number of Americans who chose to spend their retirement there. In addition, right across Europe economic and financial conditions in recent years have encouraged a growing inclination to home purchase and part of this demand has gone into a holiday home far from the retiree’s country of origin.

  This is a relatively new phenomenon, at least in quantitative terms. Having a significant effect on this are the low-cost airlines which make it possible to make two or three-hour flights at very low cost. Because of this, an important factor for a foreigner in buying a house is that it is located within a radius of approximately one hour by car from the airport. From the point of view of product, the demands of customers become more and more clear. They do not want isolated houses, they want services and they want to have safe environments with diversion and entertainment and, when it comes to actually buying, the variety of activities becomes one of the main demands.

  Given these circumstances, it is not surprising that a good part of this demand is channelled toward Spain. In the current construction boom in the Spanish economy, holiday homes are playing a key role and, within this segment, an important part of demand is of European origin. This demand, of course, comes on top of that from national customers. This is a phenomenon which is not spread right across the country but rather is concentrated on the Mediterranean littoral. Those areas with a heavy concentration of tourists include the Balearic Islands, the Canary Islands, the Costa Brava and the Costa Dorada in Catalonia, the Costa Blanca in Alicante, the Costa Cálida in Murcia, the Costa del Sol in Málaga and the Costa Tropical in Granada. In recent years, more than half of housing starts in Spain were in provinces forming part of the Mediterranean littoral or the islands. This is a strong trend given that the potential for urban development in coming years is high, which has raised concern about the effects this may have in terms of the landscape and the environment.

  Adding to these trends, in recent years the number of foreign tourists who decide to spend their holidays in Spain in their own house or in a rented one has done nothing but increase. This type of tourism, apart form its direct economic impact on the real estate sector, because of home purchase or rental, also has important indirect effects on the restaurant trade, retail trade and on the leisure sector.

  In addition, given the increased life-expectancy in Europe and the progressive increase in the number of elderly persons, it is quite plausible that health tourism or a combination of holiday and health tourism will become more and more important. Health tourism deals with the needs of tourists who come in order to obtain medical treatment and is partly met by clinics and hospitals. But as well as health tourism and, given the needs of elderly persons who often need medical services more frequently than young people, the health component in tourism for the elderly is undoubtedly important.

  One of the areas which has had a notable development with the aim of meeting this complex series of needs is the health resort, a tourist real estate complex that is partly residential with another part which may combine sports and leisure facilities, entertainment and rest. The special feature of these establishments lies in that they involve overall and coordinated management of the premises covering the entire facility.

  Whatever model of development adopted in the residential tourist sector, the fact is that these new trends are profoundly changing the form and make-up of those sectors that live within the tourist sphere. This is a transformation which may be just as important as that accompanying the first tourist boom in the Sixties.

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