The combination of rising fuel prices, both for cars and flights, combined with unexpectedly high inflation across Europe is taking a toll on expectations for the Spanish tourism industry, with some places already seeing hotel price drops to encourage business.
The war in the Middle East has had a direct impact on Spain’s largest tourism sources, the UK, Germany and France, which account for about 45% of Spain’s foreign tourism market. Hotels are concerned about another year like last year, which saw 325,000 fewer visitors from Germany and about 30,000 fewer from France; the concern is heightened by slow advance bookings this year.
High summer room rates last year, which in some cases made a one-week package holiday in the Caribbean including flights almost the same cost as one on Spanish beaches. But lower prices in Spain this year may have reversed the trend; one major online travel agency shows that for the first and third weeks of August, some Spanish destinations are better competition for the Caribbean or Turkey.
