Spain’s tourism revival has accelerated since last summer. During the winter, growth was already perpetuating, and by the end of 2023, pre-pandemic figures for arrivals and passenger spending look set to be reached again. The boom in tourism has pushed up the supply of short-stay apartments in Spain by 23%. In Madrid alone, 4,500 homes were added between March 2022 and March 2023. Yet this euphoria also has a downside. Firstly, due to the return of mass tourism to historic city centres and the risk of overcrowding. Rising property prices resulting from high demand are driving away local residents.
As of 31 March 2023, there were 80,680 listings for tourist accommodation in the 20 cities with the highest number of overnight stays in Spain. This represents a 23% growth compared to the figures for the first quarter of 2022. Madrid saw the biggest increase in absolute terms, with 19,406 accommodations, 4,500 more in just 12 months and 24% of the total. This puts the capital at the top of the rankings, well ahead of Barcelona, with 14,531 accommodations, which saw growth of 11.8% and accounts for 18% of the total.
But the phenomenon of tourist accommodation growth has long since spread to the rest of Spain’s cities. The destinations where tourist homes grew the most in the first quarter of 2023 are Ibiza, with an annual increase of 47.7%, followed by Bilbao (45.6%) and Santander (45.5%). Málaga has the most notable growth, having added 1,457 holiday homes in 12 months. There are now 7,545, more than in Seville, and with this, Málaga is catching up fast with Valencia, the city currently in third place with 7,609 holiday homes.
In Madrid, there are 1.5 million properties for rent and tourist properties barely make up 2%, while in Barcelona there are 800,000 and due to the moratorium, it has been only 10,000 for several years. The Spanish average is less than 1.3% of total rentals, and in some cities, it can reach 3% or 4%.
First and foremost, the hoteliers benefit the most. The economic contribution of staying in a hotel in Barcelona is almost €290. That then includes spending on accommodation and shopping. This is similar in Madrid, ranging from €287.10 for hotels to €180.80 for holiday homes. But not only hoteliers benefit. Spending by travelers staying in tourist apartments from the beginning to the end of their trip has increased fivefold since the pandemic. Apartment rentals account for 19.1% of this figure (4.66 billion), while the remaining 80.9% (15.728 billion) relates to spending outside accommodation.
