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Tourist consumption by Spaniards maintaining sector in Spain

  Tourist activity contributed 11.0% to Spain’s GDP in 2004, according to the Tourist Satellite Count prepared by the National Institute of Statistics which includes the indirect effects of tourism on other closely related sectors (retail trade, restaurant trade, etc.). The contribution in 2004 was slightly lower than in previous years mainly due to the lower contribution from foreign tourism (4.9% of the GDP, nearly one percentage point less than in 2000). On the other hand, in recent years the other components of tourist demand (consumption by Spaniards within Spain and gross capital formation) have gone through extraordinary growth, thanks to the strength of domestic tourism which has now become the main engine of growth in Spain’s tourist sector. In 2004, these components together contributed 6.1% to the GDP, three decimals more than four years earlier, thus increasing their contribution to the product generated by the tourist system as a whole to 55%. Also in parallel tourist consumption of Spaniards abroad has grown sharply to the point where payments of this type recorded in the balance of payments have practically doubled in the past five years.

  What are the reasons for this spectacular growth of tourist consumption by Spaniards? Undoubtedly, the main factor is the high elasticity of tourist demand in terms of income, falling within the framework of the growth cycle of Spain’s economy. In addition, in domestic tourism, growth of residential real estate investment (combining tourist pleasure and reasons of family investment) also holds special importance. With regard to incoming tourism, the loss of relative weight noted in terms of the Spanish economy as a whole is mainly due to the trend toward more contained spending. In 2005, for example, average spending per tourist was down by 2% (tourists spent more per day but reduced their average length of stay). This fact could be linked to the change in the sociological profile of visitors to Spain and the development of new habits in which the development of low-cost airlines (referred to in another chapter of this report) could be playing a key role.

  In any case, we should not have any doubts about the importance of the effect of foreign tourism for the direct and indirect activity generated by the sector. We may ask whether the bases of Spain’s tourism are sufficiently solid to guarantee its future success? The most widely held view is that it is at the point of ending a cycle and that it is necessary to face the future with new approaches. Everything would indicate that the «sun and beaches» model, the big leader in what Spanish tourism had to offer until recently, is wearing out its growth possibilities. Countries that are cheaper are competing with considerable success and, furthermore, the profile of the tourist is changing at a rapid rate. In general, the new active tourist wants to make the most of the holiday time spent which includes a wide range of complementary activities related to sport (golf, cycling tours, hiking, etc.), culture, health, enjoyment of nature, etc. We should not forget either that tourism has moved right into the technological age. It is enough to note that in 2004 more than 41 million Europeans used Internet to plan their holidays and nearly a third of those travelling to Spain used the net to plan their stay. This new reality imposes drastic changes on traditional systems of marketing which were very dependent on large European operators.

  In an attempt to respond to these challenges, some months ago the Ministry of Industry, Trade and Tourism set up the Spanish Tourism Council. This body (made up of 54 members with representation from the central government, autonomous communities, local government and the private sector) has as its mission the task of analyzing, debating, proposing and coordinating policy related to tourism. Its main objective at this moment is the preparation of a White Book on Tourism in which it will establish the bases for consolidating Spain’s present leadership in the sector (the country is now the second leading destination of international tourism in order of importance after France and ahead of the United States). Of course, the list of problems is very important. In addition to those aspects mentioned above we should add other burning questions, such as the obsolescence of certain facilities, the deterioration of the environment in some areas, etc. What is needed then is the carrying out of a careful overall analysis along with rapid implementation of adequate measures in order to avoid (as has happened on other occasions) that everything ends up merely being a declaration of good intentions.

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