MADRID — Spain’s Economy Minister has shed light on the growing concerns posed by the nation’s booming tourist industry, emphasizing that it’s an issue Spain can no longer overlook. In recent years, Spain has become one of the most visited countries globally, receiving a record 94 million international visitors last year, with projections hinting it could welcome up to 100 million tourists this year.
Economy Minister Carlos Cuerpo recently noted that while these figures highlight Spain’s allure as a travel destination, they bring inherent challenges. “It is crucial to acknowledge the challenges these record tourism numbers entail,” Cuerpo mentioned in a recent interview. “We must address these challenges for the benefit of our own population.”
The tourism sector stands as a cornerstone of Spain’s economy, contributing to a growth rate of 3.2% last year, outpacing all major advanced economies. The country is projected to grow by 2.4% this year, considerably ahead of the eurozone’s anticipated average growth rate of 0.9%, according to the Bank of Spain.
Nonetheless, Spain is grappling with a persistent housing crisis, where real estate and rental costs have soared in urban centers like Madrid and Barcelona. Urban residents have expressed growing frustration over tourism’s link to this issue, notably the surge of short-term rental accommodations in city hearts.
Spain has seen extensive protests, with tens of thousands rallying to demand robust governmental intervention in housing matters. Demonstrators carried placards brandishing messages like “Get Airbnb out of our neighborhoods,” reflecting a swell of public discontent. In answer to these grievances, authorities have announced measures to curb Airbnb listings they claim are operating unlawfully, a stance contested by the platform.
“We are a nation of 49 million,” noted Cuerpo. He highlighted the dual nature of the tourist influx, showcasing Spain’s appeal but also indicating the necessity to maintain an equilibrium that ensures a pleasurable visitor experience without unduly inflating local service and housing costs.
The Bank of Spain estimates a shortfall of 450,000 homes across the country. Cuerpo stressed the importance of bolstering public housing stocks, currently lesser than many European Union counterparts, as a solution. Addressing the housing deficit is deemed a top priority for the government.
Regarding looming U.S. tariffs on EU goods, Cuerpo outlined Spain’s intent, as the fourth-largest economy in the eurozone, to strengthen economic relations with the U.S. He indicated the EU’s approach as constructive but discerning, affirming that if no consensus is reached with American counterparts, alternative strategies would be pursued to defend European businesses and industries.
As the EU-U.S. tariff truce approaches its July 14 expiration, significant tariffs remain, including a 50% levy on steel imports and additional tariffs on vehicles and other products.
Delving into Spain’s current housing predicament, Cuerpo attributed it partly to diminished construction following the 2008 financial meltdown, compounded by population upticks from immigration and the escalating number of tourists. While expanding housing is a centerpiece of the strategy, Cuerpo advocates for a comprehensive approach, which involves regulating both the traditional housing market and short-term rental platforms. “There is no one-size-fits-all solution,” he concluded.