Spain risks driving droves of tourists away as it becomes less and less budget friendly with hotel prices jumping by nearly 50% since 2019. Demand for Spanish holidays is stronger than ever with the Mediterranean country being a top destination for both relaxing beach holidays and city breaks.
The ever increasing tourist demand is pushing hotel and hostels to eye watering levels with prices surging by seven percent year-on-year last month. New figures show a steady climb since 2017, interrupted only by a sharp dip in 2020 due to COVID-19 travel restrictions. Ever since then, prices have soared, with the latest seven percent increase adding to a 46% jump since 2019.
In 2024 Spanish news outlet Murcia Today said tourist accommodations in Spain’s popular beach resorts increased rates by an average of 7.3% during the summer season. This equates to a nightly rate of 195 euros (or £164), up from 182 euros (£154).
Spain has seen a record breaking tourism revival with tourists spending expected to be around £714 billion (€838 billion) this year. According to Eurostat Spain has seen a 70% surge in visitors since 2021, a trend that has continued to gather pace.
Despite the ever increasing prices airports are packed, hotels are overbooked and the tourism sector remains one of the key drivers of the Spanish economy.
Sweeping crackdowns on Airbnb’s and government crackdowns on short term rentals to address housing shortages have constrained supply, driving up costs and forcing holidaymakers to stay in hotels.
The latest clampdown on tourist accomodation starts on July 1, 2025, any property advertised for short stays on platforms such as Airbnb or Booking.com must be officially registered to operate legally.
However, the high costs do not appear to be putting holidaymakers off with Spain’s tourism sector predicted to experience another strong year in 2025 with the government forecasting more than 85 million international arrivals this year alone.