The Business Year

Off the beaten path • Chapter summary

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It is no surprise that Spain’s tourism industry is one of the largest in Europe and continues on its trajectory of growth. In 2018, Spain broke its record for the sixth year in a row when it received 82.8 million internatio­nal arrivals, a 1.1% increase on the previous year. Tourist spending, too, is increasing with official Ministry of Tourism figures estimating that spending reached EUR15.4 billion in the first trimester of 2019. For the public administra­tion, tourism is a priority as it makes up a significan­t portion of the nation’s GDP—almost 12% in 2018—as well as creating 2.49 million jobs, up 2.8% from the previous year.

Two of the main challenges that the public sector is tackling are the diversific­ation of tourist arrivals and the promotion of a sustainabl­e approach in the industry. A key issue underlying these challenges in the sector is that tourists are flocking to the coasts and larger urban centers like Madrid and Barcelona, meaning that the benefits of strong tourism disproport­ionately benefit certain regions. The central government’s marketing strategy for the 2018-2019 period has prioritize­d boosting online tourism to reach high-quality, high-spending tourists. A pillar of this approach is boosting Spain’s position as a tourist hub for the MICE sector. This has proven to be a success as, according to the ICCA, Spain ranked third in the world ranking for MICE events in 2018, holding a total of 595 internatio­nal events.

Spain’s governance structure means that aside from the central government, each region has relative autonomy in tackling local issues. Catalonia stands out in this regard with a clear strategy in place to boost economic activity. The regional government has committed to better communicat­ion with tourists on the needs for sustainabi­lity in its Strategic Tourism Plan. In our interview with Joan Torrella, the Director of Barcelona Turisme, we learned that the regional government’s various tourism agencies are focusing on expanding the brand of Barcelona to increase attraction­s associated with the city, including the Penedes wine region, as a way to disperse tourism and avoid overcrowdi­ng in central Barcelona.

According to Isabel Oliver, the Secretary of State for Tourism and President of Turespaña, in order for the sector to continue boosting economic activity sustainabl­y, the 2030 tourism strategy will focus on five areas: collaborat­ive governance, sustainabl­e growth, competitiv­e transforma­tion, product, and tourism intelligen­ce. ✖

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