When we examine performance from last summer across three key leisure markets, Andalusia, the Balearic Islands and the Canary Islands, we see levels of success in both occupancy and room rates that are positioned to repeat in 2023.
Both cities rely heavily on event and MICE-driven demand, which is evident in their occupancy index. Barcelona's occupancy recovery has generally outpaced Madrid's, but not by much. Madrid, on the other hand, has been running 20-30% ahead of pre-pandemic levels in terms of average daily rate (ADR) and has been consistent in holding rates regardless of market events.
This summer, Spanish tourists will continue to opt for holidays in their own country. According to latest ForwardKeys data on issued bookings, domestic flight reservations are 3% above 2019 values, with the islands the most sought-after destinations.
According to travel data analytics specialist ForwardKeys, a CEAV partner, several international destinations have recorded a higher number of bookings than in 2019.
Spain is among the most sought-after destinations in the world by tourists for this Easter, as highlighted in the presentation of travel forecasts to Spain made last Friday, 1 April 2022 by the Ministry of Industry, Commerce and Tourism and ForwardKeys.
ForwardKeys reveals that the future looks promising for the travel and tourism sector in Spain this Autumn as the number of issued tickets for domestic and international travel grow steadily.
ForwardKeys reveals that summer in Spain was exactly how it was predicted to be – international arrivals into Spain in July-August were half of 2019 levels. Spain managed to recover half of the volume of pre-pandemic internationals, down by 49.4% in 2019. On the flip side, domestic tourism was almost at pre-pandemic levels, covering for the loss of international visitors and three Spanish cities made it into the top 10 most resilient European cities list: Ibiza, Palma de Mallorca, and Malaga.
In 2019, the tourism industry accounted for over 12% of Spain’s gross domestic product (GDP). Last year, it accounted for just 5.5%, many are wondering how it is positioned this summer. The team of analysts at ForwardKeys examined the latest air ticketing data to Spain this summer for international and domestic travel to uncover a few gems.
As one of the countries under the UK’s travel corridors scheme, the Spanish tourism sector had an opportunity to regain some sort of normality and was benefiting from pent-up demand sooner than expected. However, it is expected to see demand plummet again now that restrictions have been put back in place
Data from STR and Magma Hospitality Consulting shows that Spain has seen a surge in investor interest despite political challenges in Barcelona.