tourism rates spain

Travel, Tourism & Hospitality

Tourism sector in Spain - statistics & facts

Who visits spain the most, how popular is domestic tourism in spain, key insights.

Detailed statistics

Quarterly travel and tourism balance of payments in Spain 2018-2022

Tourism premises in Spain 2015-2021

Tourism employment in Spain 2020-2021

Editor’s Picks Current statistics on this topic

Inbound tourism volume in Spain 2023, by origin

Tourism contribution to Spanish GDP 2006-2023

Destinations

Inbound tourism volume in Spain 2023, by region of destination

Further recommended statistics

• Premium Statistic Leading European countries in the Travel & Tourism Development Index 2021
• Premium Statistic Tourism contribution to Spanish GDP 2006-2023
• Premium Statistic Tourism sector as share of GDP in Spain 2010-2021
• Premium Statistic Monthly growth rate of tourism GDP in Spain 2022
• Premium Statistic Tourism employment in Spain 2015-2021
• Premium Statistic Tourism employment in Spain Q4 2022, by industry

Leading European countries in the Travel & Tourism Development Index 2021

Leading European countries in the Travel & Tourism Development Index (TTDI) in 2021

Contribution of the tourism sector to the gross domestic product in Spain from 2006 to 2022, with a forecast for 2023 (in billion euros)

Tourism sector as share of GDP in Spain 2010-2021

Contribution of tourism to gross domestic product in Spain from 2010 to 2021

Monthly growth rate of tourism GDP in Spain 2022

Percentage change in the contribution of travel and tourism to GDP in Spain from January to December 2022

Tourism employment in Spain 2015-2021

Number of employees in the tourism sector in Spain from 2015 to 2021 (in 1,000s)

Tourism employment in Spain Q4 2022, by industry

Number of people working in the tourism sector in Spain in 4th quarter 2022, by industry (in 1,000s)

Tourism volume and expenditures

• Premium Statistic Inbound visitors in Spain 2000-2023
• Premium Statistic Inbound tourism volume in Spain 2023, by origin
• Premium Statistic International tourism spending in Spain 2012-2022
• Premium Statistic Domestic trips in Spain 2015-2022
• Premium Statistic Domestic trips in Spain 2022, by destination
• Premium Statistic Domestic tourism spending in Spain 2015-2022
• Basic Statistic Share of travel and tourism spending in Spain 2022, by traveler origin

Inbound visitors in Spain 2000-2023

Number of international visitors in Spain from 2000 to 2023 (in millions)

Number of international tourists in Spain in 2023, by country of residence (in 1,000s)

International tourism spending in Spain 2012-2022

Expenditure of international tourists in Spain from 2012 to 2022 (in billion euros)

Domestic trips in Spain 2015-2022

Number of domestic trips in Spain in 2015 to 2022 (in millions)

Domestic trips in Spain 2022, by destination

Number of domestic trips in Spain in 2022, by autonomous community of destination (in millions)

Domestic tourism spending in Spain 2015-2022

Expenditure of domestic tourists in Spain from 2015 to 2022 (in billion euros)

Share of travel and tourism spending in Spain 2022, by traveler origin

Distribution of expenditure by tourists in Spain in 2022, by main origin

• Premium Statistic Inbound tourism volume in Spain 2023, by travel reason
• Premium Statistic Domestic trips in Spain 2022, by travel reason
• Basic Statistic Share of travel and tourism spending in Spain 2022, by purpose
• Premium Statistic Inbound trips for cultural purposes to Spain 2010-2022
• Premium Statistic Number of enotourists in Spain 2008-2022
• Premium Statistic Number of skiers and snowboarders in Spain 2010-2022
• Premium Statistic Pilgrims on the Way of Saint James 2011-2022

Inbound tourism volume in Spain 2023, by travel reason

Number of international tourists in Spain in 2023, by travel purpose (in 1,000s)

Domestic trips in Spain 2022, by travel reason

Number of domestic trips in Spain in 2022, by travel purpose (in millions)

Share of travel and tourism spending in Spain 2022, by purpose

Distribution of expenditure by tourists in Spain in 2022, by main travel purpose

Inbound trips for cultural purposes to Spain 2010-2022

Number of trips for cultural reasons made by international tourists to Spain from 2010 to 2022 (in 1,000s)

Number of enotourists in Spain 2008-2022

Number of visitors to wineries and wine museums in Spain from 2008 to 2022 (in 1,000s)

Number of skiers and snowboarders in Spain 2010-2022

Number of visitors to ski resorts in Spain from 2010/2011 to 2021/2022 (in 1,000s)

Pilgrims on the Way of Saint James 2011-2022

Number of pilgrims who traveled to Santiago de Compostela, Spain from 2011 to 2022

• Premium Statistic Tourism premises in Spain 2015-2021
• Premium Statistic Share of tourism companies in Spain 2021, by size
• Premium Statistic Main hotel groups in Spain FY2021, by sales revenue
• Premium Statistic Main passenger airlines in Spain 2022
• Premium Statistic Main travel agencies in Spain FY2021, by sales revenue
• Premium Statistic Main restaurants and food stall companies in Spain FY2021, by sales revenue
• Premium Statistic Ecotourism businesses' average revenue in Spain 2022, by type

Number of establishments in the tourism sector in Spain from 2015 to 2021

Share of tourism companies in Spain 2021, by size

Distribution of businesses in the tourism sector in Spain in 2021, by size

Main hotel groups in Spain FY2021, by sales revenue

Leading hotel companies in Spain in FY2021, based on sales revenue (in million euros)

Main passenger airlines in Spain 2022

Leading airlines in Spain in 2022, based on number of passengers (in millions)

Main travel agencies in Spain FY2021, by sales revenue

Leading travel agencies in Spain in FY2021, based on sales revenue (in million euros)

Main restaurants and food stall companies in Spain FY2021, by sales revenue

Leading restaurant and food stall companies in Spain in FY2021, based on sales revenue (in million euros)

Ecotourism businesses' average revenue in Spain 2022, by type

Average revenue of ecotourism establishments in Spain in 2022, by type (in 1,000 euros)

Main destinations

• Premium Statistic Main coastal destinations in Spain 2022, by number of hotel guests
• Premium Statistic Most visited cities in Spain 2022
• Premium Statistic Attendance to Spanish National Heritage sites 2022
• Premium Statistic Attendance to Spanish national parks 2022
• Premium Statistic Cruise ship calls at Spanish ports 2022, by authority
• Premium Statistic Enotourism destination areas in Spain 2022, by region

Main coastal destinations in Spain 2022, by number of hotel guests

Leading beach destinations in Spain in 2022, based on number of overnight tourists in hotels (in 1,000s)

Most visited cities in Spain 2022

Leading city destinations in Spain in 2022, by number of tourists (in 1,000s)

Attendance to Spanish National Heritage sites 2022

Number of visitors to National Heritage sites in Spain in 2022 (in 1,000s)

Attendance to Spanish national parks 2022

Number of visitors to national parks in Spain in 2022 (in 1,000s)

Cruise ship calls at Spanish ports 2022, by authority

Number of cruise vessels calling at ports in Spain in 2022, by port authority

Enotourism destination areas in Spain 2022, by region

Number of Wine Routes in Spain in 2022, by autonomous community

Online travel market

• Premium Statistic Quarterly online revenue of accommodation businesses in Spain 2014-2022
• Premium Statistic Quarterly online revenue of travel agencies & tours operators in Spain 2014-2022
• Premium Statistic Airbnb revenue in Spain 2015-2020
• Premium Statistic Willingness to purchase tourism services online in Spain 2019-2022
• Premium Statistic Average spend on tourism services booked online in Spain 2018-2022
• Premium Statistic Hotel / private accommodation online bookings by brand in Spain 2024

Quarterly online revenue of accommodation businesses in Spain 2014-2022

E-commerce revenue of hotels and similar establishments in Spain from 1st quarter 2014 to 4th quarter 2022 (in million euros)

Quarterly online revenue of travel agencies & tours operators in Spain 2014-2022

E-commerce revenue of travel agencies and tour operators in Spain from 1st quarter 2014 to 4th quarter 2022 (in million euros)

Airbnb revenue in Spain 2015-2020

Revenue of Airbnb in Spain in 2015, 2019, and 2020 (in million euros)

Willingness to purchase tourism services online in Spain 2019-2022

Share of individuals who intended to buy travel products and services online in Spain from 2019 to 2022

Average spend on tourism services booked online in Spain 2018-2022

Average spend on travel products and services bought online in Spain from 2018 to 2022 (in euros)

Hotel / private accommodation online bookings by brand in Spain 2024

Hotel / private accommodation online bookings by brand in Spain as of March 2024

Further reports

Get the best reports to understand your industry.

Mon - Fri, 9am - 6pm (EST)

Mon - Fri, 9am - 5pm (SGT)

Mon - Fri, 10:00am - 6:00pm (JST)

Mon - Fri, 9:30am - 5pm (GMT)

</> API

Information on Spain’s tourism industry

A selection of the most significant Spanish tourism data for consultation and study.

A selection of current posts on Spanish tourist information

• Practical case: the impact of a major event on travel to a destination
• Cruise lines: its passenger figures in 2023 and its changes and trends over the last year and since the pandemic
• Geospatial Data: Maps that Help Us Interpret Data

9,3% of employment

Accommodation

Sustainability

Receive all the news in your inbox. Always be up-to-date with the latest tourism information in Spain.

Other links

• e-Office portal
• Attention to citizens
• Registry Assistance Office

Statistics and Reports

• Recommend on Facebook
• Send by mail
• Movimientos Turísticos de Españoles (FAMILITUR)
• Movimientos Turísticos en Fronteras (FRONTUR) - DATAESTUR
• Encuesta de Gasto Turístico (EGATUR) - DATAESTUR
• Estadísticas de hostelería y turismo
• Campamentos Turísticos
• Establecimientos hoteleros
• Apartamentos Turísticos Autorizados
• Turismo Rural

Has this page helped you?

• Yes esta pagina es util
• No esta pagina no sirve

Thanks for your comments.

• 17th May 2024 | House sales and purchases fall 19.3% in March
• 17th May 2024 | Bank of Spain announces intention to gradually implement 100bp Countercyclical Capital Buffer for banks
• 16th May 2024 | Criteria and TAQA negotiate to share Naturgy’s capital in hypothetical joint control
• 16th May 2024 | US inflation moderates to +3.4% year-on-year in April; core stands at +3.6%, three-year low

71.6 million tourists visit Spain in 2022, spending €87 billion

Posted By: The Corner 3rd February 2023

The data on tourist movements at borders (Frontur) made public by the Spanish statistical institute show that the figures for the end of 2022, which are close to 72 million registered tourists, are still 14.3% below those recorded in 2019, a record year for Spanish tourism in which 83.7 million foreign visitors to our country exceeded 83.7 million.

For the Minister of Industry, Trade and Tourism, Reyes Maroto, these data confirm the intense recovery of the tourism sector in 2022. “The expectations we had of recovering the majority of international tourists from the pre-pandemic period have been fulfilled, but the most important thing is that spending is growing more and also the average stay, and this means an improvement in the quality and profitability of our sector,” she said.

The main countries of residence of tourists visiting Spain last year were the UK, France and Germany. Tourist arrivals from the United Kingdom increased by 251.3%, those from France by 73.3% and those from Germany by 87.4%.

By regions, the auronomous community of Catalonia was the principal destination in 2022, with 20.7% of the total number of tourists. It was followed by the Balearic Islands (18.5%) and the Canary Islands (17.2%).

Most of the international tourists arriving in Spain came by air, a total of 59.3 million, an increase of 142.5% over the previous year. Nearly 11 million international visitors arrived by road, an increase of 71.8%. Hotel or rented accommodation was used by 59.5 million tourists (140.3% more than in 2021) and homes owned or rented by family or friends by another 12 million (87.8% more).

The majority stay in 2022 was between four and seven nights, and the majority of visitors (54.1 million) came to Spain without a tourist package, twice as many as in 2021. These data confirm the end of a positive year for tourism in Spain, which in December was visited by 4.1 million international tourists, 39.9% more than in the same month in 2021.

About the Author

Privacy Overview

Travel Safe

Urban tourism

Walks that make you fall in love with the historic gardens of Spain

Seven caves to take you to the heart of Castile and Leon

15 spectacular blossoms to experience up close

Discover Spain's most Magical Towns

Have you ever visited the impressive Royal Heritage Sites?

Spain seen through the eyes of the best travel media

Discover our destinations

The capital city with a thousand options

One of Spain’s most avant-garde cities

A great city with lots to discover

A cosmopolitan vibe

The essence of the Mediterranean

The capital of the Costa del Sol is reinventing itself

An inspiring destination

The final destination of St. James’ Way

The Golden city of a thousand legends

Ideal for a getaway

A picturesque medieval setting

European sunshine capital

Idyllic coves, beautiful sunsets...

Santiago de Compostela

Canary Islands

Balearic Islands

Not to be missed

Choose the travel plan you like the most to make your stay in Spain unforgettable

A good time of year to take the Camino de Santiago

Visit Córdoba and discover the city in all its glory during its main festival

Summer music festivals where you can dance non-stop

11 incredible trips around Spain for train lovers

Nights of candles, flowers and concerts

Other ideas for your trip

Do you want some more suggestions for your holidays?

Original tours with staged performances that will surprise you

Journeys inspired by the meanings of colours

Are you coming on the route of the windmills?

Discover magical legends in nature

Are you sure you want to delete this route?

Route planner

Create your own plan for your trip to Spain with a route to suit your requirements

Enjoy the best events

Exhibitions, festivals, festivities... Don't miss a thing!

13 June 2024 - 15 June 2024

Sónar. International Festival of Progressive Music and Multimedia Arts in Barcelona

31 May 2024 - 16 June 2024

Madrid Book Fair

23 June 2024

The San Juan Bonfires (A Coruña)

20 June 2024 - 24 June 2024

Bonfires of San Juan (Alicante)

29 June 2024

Battle of Wine

21 June 2024 - 23 June 2024

Motor racing: Spanish Formula 1 Grand Prix

All the useful information you need.

Trip advice to get the most out of your holidays

The weather in Spain

Today in: Tarragona

How to get there

How to get around, practical information.

Book your experience

Thousands of activities thought out for you

#visitSpain

Share the best of Spain on our networks

The best ideas for travelling around Spain

Subscribe to receive monthly information with unique travel plans

Spain's tourist sector seen reaching 88% of pre-pandemic size in 2022

• Medium Text

Sign up here.

Reporting by Emma Pinedo, editing by Inti Landauro and Toby Chopra

Our Standards: The Thomson Reuters Trust Principles. New Tab , opens new tab

World Chevron

Britain announced sanctions on Friday against three companies and one individual over what it called the "illicit ‘arms-for-oil’ trade" between Russia and North Korea.

• Global Australia Cyprus France Germany Hungary Jersey Mauritius Namibia Portugal South Africa Spain Switzerland Thailand UAE UK Zimbabwe
• es en fr de

Spain Claims Title as Worlds Top Tourist Destination in 2023

In a historic turn of events, Spain claimed the coveted title of the world’s number one tourist destination in 2023, surpassing France for the very first time.

According to the Spanish National Institute of Statistics (INE) and the Tourist Movements at the Borders (FRONTUR), Spain welcomed a staggering 85.1 million international tourists in 2023, marking an impressive increase of 18.9% over the previous year. Meanwhile, France, pending official confirmation of its 2023 data, is estimated to have received between 78 and 82 million tourists, according to the French Ministry of Tourism. By residence country of inbound tourists, the sharp rise in tourists from the US stands out, with almost 40% more arrivals than in 2022 and over 16% more than in 2019, reflecting the efforts made to attract long-haul markets and higher average expenditure. Tourism from the European Union was more modestly above its 2019 levels due to weakness in the Nordic countries, affected by an unfavourable exchange rate, and Germany. In contrast, British tourism, which started the year with somewhat modest figures, has livened up throughout 2023, which is excellent news for the sector’s prospects as the United Kingdom is Spain’s main source of foreign tourists. Spain’s Tourism Sector Exceeds Expectations in 2024 The latest insights from the World Travel and Tourism Council (WTTC), in collaboration with ForwardKeys, paint a rosy picture for Spain’s travel industry. Spain is not only bouncing back but exceeding its pre-pandemic levels in international arrivals and capacity. Spain is poised to welcome a remarkable 13% increase in international visitors in the first half of 2024, solidifying its status as a powerhouse in the global tourism arena. Julia Simpson, President, and CEO of the WTTC, commended Spain’s dedication to the tourism sector, citing both official efforts and private industry initiatives aimed at driving growth. She emphasized that Spain's exceptional performance underscores its prominence on the world stage, signalling a promising year ahead for the country’s tourism sector. Of particular note is the burgeoning trend of luxury tourism in Spain. Julia Simpson highlights a noticeable uptick in visitor spending, especially among luxury travellers. Looking forward to 2024, the outlook remains optimistic, with key cities like Seville, Barcelona, Madrid, and Valencia experiencing higher average occupancy rates compared to the same period last year. Madrid leads the pack with a remarkable 20.4% increase, followed closely by Valencia with a 14.7% rise, indicating a strong resurgence in Spain's tourism industry. Spain Claims Top Spot as World's Most Powerful Passport Finally, Spain has taken the crown as the world’s most powerful passport, surpassing Singapore, according to a new index released by VisaGuide.World. This marks a departure from the Henley Passport Index, where Singapore held the top spot previously.

Fine & Country Spain covers the locations of the:

Costa Blanca , to include the desirable coastal towns of Altea, Calpe, Benissa Costa, Moraira, Benitachell, Javea, Denia, Oliva, the city of Valencia and the inland areas of the Jalon and Orba valleys.

Costa del Sol , to include the prime and affluent areas of Marbella, Benahavís, Estepona, Finca Cortesin and Sotogrande.

We can assist clients who are looking to buy or sell property in Ibiza and Mallorca. Additionally, we are expanding our services to the cities of Barcelona and Madrid.

From opulent villas, penthouses, apartments, classic villas, luxury new build and resale to investment opportunities, we have a wide range of property types to suit a variety of budgets with a commitment to excellence and a passion for matching unique lifestyles with exceptional homes.

Contact Details

Tel Office/Whatsapp : +34 685 810 394 Email: [email protected]

Fine & Country Spain Head Office Marina de Dénia Darsena de Babor Edificio E, Bajo 2 Puerto de Dénia 03700 Dénia Alicante

You may also like...

14th May, 2024

Spain's Pristine Beaches

6th May, 2024

Have you heard about the Festival of the Wine Horses?

3rd May, 2024

Día de la Madre

Why spain remains a top retirement destination in 2024.

30th April, 2024

Día del Trabajador - Primero de Mayo

23rd April, 2024

Embrace the Magic of St. Jordi's Day in Catalonia: Roses, Books, and Dragons

19th April, 2024

Magic of the 2024 Seville April Fair

15th April, 2024

Luxury Real Estate: Elegance, Sustainability, and Smart Living

9th April, 2024

Foreign investment in Spain in 2023

28th March, 2024

Easter in Spain: A Tapestry of Tradition and Celebration

• Newsletters

What are the trends for international tourism in Spain in 2024? A sensitivity analysis based on macroeconomic factors

We identify the macroeconomic factors that affect the evolution of international tourism in Spain, including income growth in the source countries, inflation, geopolitical risk and exchange rates, and we estimate how many international tourists will visit Spain in 2024.

Exploring the macroeconomic factors affecting the evolution of international tourism in Spain, we find the rate of income growth in the home countries of inbound tourists is the main determining factor. We also observe a close relationship between geopolitical risk in the Eastern Mediterranean and increases in international tourism in Spain. Moreover, while the exchange rates of the pound and dollar affect British and US tourism, the strength of the euro against other foreign currencies does not affect better than increase the propensity of Europeans to travel to Spain. Finally, inflation appears to be weak and heterogeneous in terms of its effects as a determinant of tourism demand. Using these sensitivities and CaixaBank Research’s forecast scenario for 2024, we estimate that international tourist arrivals will increase by 3.8% in 2024, with British and US inbound tourism growing above this average.

In this article we analyse the main factors that determine the evolution of international tourism in Spain. We have used a multiple regression model in which the dependent variable is the number of tourists from the main residence countries for Spain’s inbound tourism (UK, France, Germany, Italy and the US). The independent variables include the gross disposable income of households in the countries of origin, a geopolitical risk index, the exchange rate of the euro against other major currencies and inflation (both in Spain and in the countries of origin). 2

The real gross disposable income of international tourists

The main factor behind the growth of international tourism in Spain is the situation of real income in the home countries of its inbound tourism. The chart below shows the growth in the number of international tourists per country of origin for each point of real income growth in each country. 3 Except for France, all coefficients are substantially above 1, a result that is consistent with the fact that international tourism in Spain is a luxury good; i.e. when income increases, tourism expenditure grows proportionally more than income. 4 This points to a high growth potential for Spain’s tourism sector as household income increases in the residence countries.

• 2. The regression model also includes a time trend.
• 3. Specifically, the model includes the average growth in gross income in residence countries in the four quarters prior to the trip, adjusted for inflation in the tourists’ country of origin.
• 4. Note that this coefficient does not correspond to the elasticity of international tourist arrivals to income since we do not adjust for population growth.

Growth in international tourist arrivals by additional point of real gross disposable income

Growth in international tourist arrivals per additional point of geopolitical risk index

Geopolitical risk in the US

Geopolitical risk in türkiye.

Geopolitical risk

One of the key factors in the success of Spain’s tourism sector is the high perception of safety and security offered by the country. According to the World Economic Forum’s Tourism Competitiveness Index, Spain scores 6 (out of a maximum of 7) in the pillar measuring safety and security, 5 a significantly higher score than leading competitors such as Italy (5.5), Greece (5.4) and Türkiye (4.8), although somewhat lower than Portugal (6.3). We examine the trend in tourist arrivals in relation to two measures of geopolitical risk: an American index of geopolitical risk, used as a proxy (a measure that, being sufficiently close, represents the value of another in a calculation) for global geopolitical risk, and an index of geopolitical risk in Türkiye, used as a proxy for geopolitical risk in the eastern Mediterranean. 6

Geopolitical risk perceived from the United States seems to have a negligible effect on international tourist arrivals to Spain. In fact, this index only has a statistically significant effect on arrivals from the US. In contrast, geopolitical instability in the Eastern Mediterranean seems to divert tourist flows to destinations perceived as safer, such as Spain. In particular, an increase in geopolitical risk in Türkiye leads to a statistically significant increase in the total flow of tourists to Spain, with particularly notable increases in American, British and French tourism.

Exchange rates

In general, we can expect a weak euro against foreign currencies to act as a tailwind for Spain’s international tourism as travel to Spain becomes more affordable for Britons and Americans, while travel to destinations outside the euro area becomes more expensive for European tourists. Since exchange rates tend to be quite volatile and long-term trends differ depending on the currency (for example, pound sterling depreciated against the euro between 2020 and 2022 while the US dollar fluctuated within a fairly stable range), we use a range of specifications to examine the behaviour of British, American and European tourists in the face of exchange rate fluctuations.

This analysis shows that, in general, growth in Spain’s international tourism slows down when the euro is strong. In particular, the exchange rates of the pound sterling and US dollar affect British tourism and US tourism, respectively. However, the strength of the euro against a basket of foreign currencies 7 does not appear to significantly change the propensity of European tourists to travel to Spain and there is no indication that an appreciation of the euro leads to a reduction in tourism from euro area countries to Spain.

Inflation, both in Spain and in the residence countries, appears to have a limited effect on tourist arrivals. Domestic inflation did not show any significant results either for total international tourism or for any of the main markets analysed. In contrast, inflation in the countries of origin seems to have a somewhat more negative effect on Spain’s inbound tourism. However, this relationship is only significant in the case of the United Kingdom.

• 5. This pillar is constructed based on several indicators, such as the safety of walking alone at night and the number of homicides per 100,000 inhabitants.
• 6. The geopolitical risk index is constructed from newspaper articles by searching for keywords related to geopolitical threats and tensions. Data from Caldara, D. and Iacoviello, M. (2022). «Measuring Geopolitical Risk», American Economic Review, April, 112(4), pp. 1,194-1,225.
• 7. JP Morgan Euro Area Neer Nominal index, which includes the currencies of the euro area’s trading partners adjusted by relative weight.

Percentage change in international tourist arrivals per additional point of inflation in the residence country

Equipped with the estimated sensitivities of the different economic factors on the number of international tourists visiting Spain, and combining these with CaixaBank Research’s forecast scenario for the main economies, we can predict the number of international tourists visiting Spain in 2024. Specifically, we expect international arrivals to Spain to grow by 3.8%, a rate slightly higher than the 3.4% average over the past 20 years. Of particular note is the role played by the recovery in real disposable income in the main residence countries of Spain’s inbound tourists as the inflationary shock dissipates. Likewise, the greater security offered by Spain in a context of high geopolitical instability in Eastern Mediterranean countries and a certain appreciation of the euro expected in 2024 both support this forecast.

By country, in 2024 we expect tourist arrivals from the UK and the US to grow the fastest. The expected appreciation of the euro against the pound sterling and US dollar will be modest (according to CaixaBank Research the euro will rise from 1.07 dollars on average in 2023 to 1.12 in 2024, and from 0.87 pounds to 0.89). Moreover, the recovery in real disposable income and the security situation will support the flow of British and American tourists to Spain. It should be noted that, in the US, growth in real gross disposable income in 2023 was 1.2 pp above its historical average. Likewise, both the UK and the US are countries that have historically been sensitive to instability in the Eastern Mediterranean.

As for the Euro Area countries, we expect Italian, German and French tourism to post a somewhat weaker performance. French tourists are expected to perform best, with a predicted growth of 3.6%, boosted by increases in gross disposable income. Italian and German tourism will grow more slowly because of their declines in gross disposable income in 2023 and their lower estimated sensitivity to geopolitical risk in the eastern Mediterranean.

International tourist arrivals in 2023 and 2024

Number of tourists (millions)

International tourist arrivals in 2023 and 2024 (total)

International tourist arrivals in 2023 and 2024 (countries), to read below.

Distribution of wealth in Europe’s large economies

Spain’s growth beats expectations in Q1

Spanish firms remain financially sound

Spain: Tourism and employment boom puts economy back on track

The first quarter of 2022 will be impacted by the Omicron wave, but from the second quarter onwards we expect the economy to grow faster again. A strong labour market, an uplift in public investment, and a further recovery of the tourism sector will boost economic activity. Inflation is high, but we expect it to come down this year

Stronger growth from 2Q onwards

The Spanish economy ended 2021 on a strong note. GDP growth came in at 2% quarter-on-quarter, which was higher than expectations. Due to the Covid-19 Omicron wave consumption contracted, but investment and exports grew sharply. The economy is now about 4% smaller than pre-pandemic levels. This is in contrast to the eurozone as a whole, which reached its pre-pandemic level in 4Q21.

Survey data, however, points to a weakening in the first quarter of this year caused by Omicron. But from the second quarter onwards we expect the economy to grow faster again. The main reasons for this are a vibrant labour market, a boost to public investment, and a continued recovery of the tourism sector. High inflation, however, is currently a threat, even though we think it will come down over the year.

Evolution of GDP and components during the pandemic (4Q 2019 = 100)

A very strong labour market will support consumption.

Historically, the negative impact of a recession on the Spanish labour market is quite extreme and long-lasting. But the impact of the pandemic is already digested. Indeed, there are currently more people registered with the social security system and fewer people are jobless than before the pandemic. The unemployment rate was 13.3% in the final quarter of 2021, which is lower than before the pandemic. Looking ahead, it is likely that the unemployment rate will continue to fall. Demand remains strong as industrial companies indicate that their order books are richly filled, even more so than before the pandemic. And the number of businesses that report labour shortages is still limited, certainly compared to the eurozone.

Figure 2: Spanish companies are less labour strapped (% of businesses saying that labour limits their production)

Structural problems in the labour market are still with us.

All this is obviously good news for short-term economic activity, but that does not mean the structural problems in the labour market are history. Indeed, the Spanish unemployment rate is still almost double the rate of the eurozone, youth unemployment is very high, and almost one in four Spanish workers is on a temporary contract.

The latest labour market reform, which tweaks the 2012 measures and focuses on limiting the use of temporary contracts, caused a lot of discussion on the political front. It is backed by businesses and unions, but initially it did not have sufficient support in parliament. Surprisingly, it did pass recently… by accident . This could obviously cause some political tension.

Rise in public investment will support growth

The labour reform is also important for short-to-medium term activity as it would help to secure new NextGenerationEU (NGEU) funds which should boost public investment. The Spanish government wants to frontload the EU money and spend 77% of the €70bn in grants (about 4.5% of 2021 GDP) over the period 2021-23. The next instalment of €14bn should be requested before April. Even though we think this rate of absorption is very ambitious, the NGEU will still have a positive impact on growth in 2022 and 2023.

Another issue that will support public investment is the budget for 2022, the largest in Spanish history. It was approved at the end of last year, which lowered political uncertainty and includes €40bn of investments (including NGEU funds).

Tourism sector will further recover

During the first quarter of this year, the tourism sector will still be affected by the Omicron wave, but we think that from the second quarter onwards the sector will be able to continue its recovery. In 2021 the tourism sector was able to recuperate but less than expected due to travel restrictions and new Covid waves. The number of international tourists grew from about 19 million in 2020 to about 31 million in 2021, but this is still about 52 million (!) less than in 2019. Since this sector has not yet fully recovered, this of course gives more potential to support growth in the years to come.

Inflation should come down during 2022

As for the whole of Europe, rising inflation is a threat to the Spanish economy. Headline inflation was about 0% at the beginning of 2021, but in January 2022 it equalled about 6%. Core inflation started to rise in the middle of 2021 from about 0.2% to 2.4% in January 2022. The biggest contributor to the rise was higher energy prices, and this item has a larger weight in Spain than the eurozone as a whole. But the sharp rise of core inflation warrants caution. Indeed, higher energy prices can feed into other consumer prices and on top of that more and more companies are saying that they will increase their selling prices. We nevertheless expect that inflation will come down during 2022 as we do not expect energy prices to rise as much in 2022 as they did in 2021. They might even come down. However, due to second-round effects, we expect about 2.5% headline inflation at the end of 2022, which is higher than pre-pandemic levels of about 1.0%.

All in all, the economic outlook is good for Spain. We expect the economy to grow by about 5.0% in 2022, matching the 5.0% growth in 2021. For 2023 we expect about 3% growth. In this scenario the Spanish economy would reach its pre-pandemic level in the first half of 2023. Indeed, the firm labour market, a push of public investment, a further recovery of the tourism sector and declining inflation should all help to push the economy further.

10 February 2022

"THINK Outside" is a collection of specially commissioned content from third-party sources, such as economic think-tanks and academic institutions, that ING deems reliable and from non-research departments within ING. ING Bank N.V. (" ING ") uses these sources to expand the range of opinions you can find on the THINK website. Some of these sources are not the property of or managed by ING, and therefore ING cannot always guarantee the correctness, completeness, actuality and quality of such sources, nor the availability at any given time of the data and information provided, and ING cannot accept any liability in this respect, insofar as this is permissible pursuant to the applicable laws and regulations.

This publication does not necessarily reflect the ING house view. This publication has been prepared solely for information purposes without regard to any particular user's investment objectives, financial situation, or means. The information in the publication is not an investment recommendation and it is not investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Reasonable care has been taken to ensure that this publication is not untrue or misleading when published, but ING does not represent that it is accurate or complete. ING does not accept any liability for any direct, indirect or consequential loss arising from any use of this publication. Unless otherwise stated, any views, forecasts, or estimates are solely those of the author(s), as of the date of the publication and are subject to change without notice.

The distribution of this publication may be restricted by law or regulation in different jurisdictions and persons into whose possession this publication comes should inform themselves about, and observe, such restrictions.

Copyright and database rights protection exists in this report and it may not be reproduced, distributed or published by any person for any purpose without the prior express consent of ING. All rights are reserved.

ING Bank N.V. is authorised by the Dutch Central Bank and supervised by the European Central Bank (ECB), the Dutch Central Bank (DNB) and the Dutch Authority for the Financial Markets (AFM). ING Bank N.V. is incorporated in the Netherlands (Trade Register no. 33031431 Amsterdam).

International Tourism Statistics for Andalucia

International tourist statistics for andalucia.

by Chris Chaplow

2023 figures - the recovery continues

Official data by INE (National Statistics Institute, see table below) for 2023  recorded 12.2 million international arrivals to Andalucia, a record year, just overtaking the 12.02 million in 2019. This means that international tourism numbers in Andalucia returned to pre-pandemic levels in 2023, which is a hugely significant moment for the tourism industry here. 

Figures should only be compared to those from 2019 (see below), the last "normal" year, to indicate the recovery of tourism after the pandemic. International tourists to Andalucia are defined as those making an overnight stay, whose country of residence is not Spain, and whose main destination in Spain is to Andalucia.

However international arrivals in 2023 were not the same for all countries. The UK, which is the biggest country for tourist arrivals here in Andalucia, still has a way to go to recover pre-pandemic levels. In 2023, UK arrivals were 2.65 million, ahead of 2022's 2.40 million but only 88 % of  2019 pre-pandemic year of 3.01 million tourists.

2020 to 2022: from pre-pandemic record levels to post-pandemic recovery

In 2019,  the last pre-pandemic year, Andalucia received 10.8  million international tourists , which was the highest ever recorded, and greeted with delight by the regional government. This figure was 3.4% up on 2018, and in line with consistent growth from 2010 to 2019.

In 2020 , the first year of the Covid pandemic,   Andalucia received only 2.7 million international tourists . January and February were up about 3% on 2019, but after mid-March when the Coronavirus pandemic.struck, borders were closed until mid-July, when restrictions and/or tests made it complicated for international tourists to visit.

• Airport Statistics for Andalucia

In 2021 the recovery started -   Andalucia received 4.2 million international tourists , about a third of pre-pandemic levels. In the second half of the year, as restrictions eased international tourist numbers increased, with October / November reaching about 75% of 2019 levels (see monthly table, below). However the Omicron variant of the Coronavirus at the end of the year caused a reduction in reservations for the 2022 holiday season, which usually see a boost in January.

The 2021 national tourist arrivals (including Andalucian tourists) increased substantially in 2021, with close to 20 million tourists helping the economy of the tourism, and especially the hotel, sector. Of the 20 million, 77% were national, and about half of these were Andalucian residents travelling within Andalucia, possibly helped by the hotel discount voucher offered by the regional government. This supported the local destinations' economies, but not the Andalucian tourism economy as a whole.

In 2022 Andalucia received 10  million international tourists . This is equivalent to 83% of the 2019 peak, and similar to the 2015/6 figures. 

These figures would place Andalucia, if it were a country, about 25th in a world league of foreign tourist arrivals.

Internationally 2022 started slowly, since the Covid wave over New Year delayed summer reservations. January 2022, for example, saw 56% international arrivals compared to 2019 levels, but UK arrivals were only back to 39%.

In the first half of 2022, international tourists were at 77% of 2019 levels. Many reports optimistically predicted that 2022 would be a bumper summer for travel to Spain, and indeed the second half of the year recorded a more impressive 89%. 

International Tourists in Andalucia - by year

In the table we observe the increase in international (ie non Spanish) tourist arrivals to Andalucia. A general increase from 2000 to 2007, then the fall to 2010, followed by the rise back to 2019, then the pandemic in 2020/1 and the recovery in 2022 and 2023.

Source: Instituto Nacional de Estadistica. Movimentos turisticas en frontera. Frontur .

International Tourists to Andalucia - by month

Source: Instituto Nacional de Estadistica. Movimentos turisticas en frontera. Frontur   Data published by INE five weeks after end of month.

British Tourists to Andalucia - by month

Source: Instituto Nacional de Estadistica. Movimentos turisticas en frontera. Frontur   data Data published by INE five weeks after end of month.   

International Tourists to Andalucia - by country

In the table below, for 2011 and 2010 and 2009, we show the international tourists in Andalucia by their country or region of residence.

Source: Source: Instituto Nacional de Estadistica. Frontur.

Compare tourists by country - Summer 2019 and 2023

If international tourist to Andalucia is just above 2019 level and UK is down, which countries are up? In the table below, which just looks at the summer school holiday months of July and August one can see which countries have increased and which have descreased. Countried with less than about 25.000 per mont are not included in the published Data.

Source: Instituto Nacional de Estadistica. Movimentos turisticas en frontera. Frontur   data

Tourist visits to towns in Andalucia

Tourist visits to towns in Andalucia are measured by INE from hotel occupation records. They don't reflect when a town receives day trip visits only overnight stays. A tourist staying serveral nights is counted once however a tourist changing hotel will be counted twice.

Source: Source: Instituto Nacional de Estadistica.

Revealed: Major tourist city in southern Spain has seen the biggest surge in hotel prices this year

A MAJOR tourist city in southern Spain has since the biggest surge in hotel prices across the whole country, according to figures for the first quarter of 2024. 

High demand and high occupation have seen the average daily rate (ADR) shoot up in the city of Malaga, rising a full 22% for the first three months of the year compared to the same period a year before. 

The average cost of a Malaga hotel room came in at €112.69 in the first quarter of 2023, but that figure has now risen to €137.42. 

While prices in Malaga may have risen the most, another Costa del Sol city has even higher average prices: Marbella. 

Read more: Spain’s summer hotel occupation nears pre-pandemic levels despite historically high room prices

There, a traveller could have expected to pay €168.40 on average for a nightly hotel stay during the first quarter of the year. 

Taking the top spot on the list, meanwhile, is the Canary Islands, where an average night came in at €171.30.

In terms of occupation, Malaga came second on the ranking having filled 76% of its hotel rooms during the first quarter. Marbella, meanwhile, managed 55%. 

• canary islands
• spanish hotels
• The Olive Press

Related Articles

Gibraltar post-Brexit deal hopes dashed in latest summit: Spanish FM says there are ‘no insurmountable obstacles’ but Andalucia blames ‘tax haven’ Gibraltar for ‘degrading’ the Campo’s economy

Urgent appeal: Irish expat in her 70s is forced to give up animal sanctuary on Spain’s Costa del Sol after cancer diagnosis – and needs help to foster 80 dogs 

Marbella shootings latest: 25-year-old man shot in the leg in Fuengirola turns up in Marbella hospital

Simon Hunter

Simon Hunter has been living in Madrid since the year 2000 and has worked as a journalist and translator practically since he arrived. For 16 years he was at the English Edition of Spanish daily EL PAÍS, editing the site from 2014 to 2022, and is currently one of the Spain reporters at The Times. He is also a voice actor, and can be heard telling passengers to "mind the gap" on Spain's AVLO high-speed trains.

Leave a Reply Cancel reply

You must be logged in to post a comment.

This site uses Akismet to reduce spam. Learn how your comment data is processed .

Lynx victory in Spain: Wild cat is almost free of risk of extinction after population surpasses 2,000

3 bedroom Terraced Villa for sale in Esporles with pool garage – € 750,000

Latest from lead.

‘This is fascism!’: British expat fury after anti-tourism activists in Spain demand a ‘list of foreign residents’ who are ‘alien’ to local culture

More from the olive press.

Tourism tax rates in Spain

Last updated 15 February 2021 | Rates reviewed for all destinations listed. Changes include:

• Catalonia regional tax rate increase
• Barcelona Surcharge delayed from January 2021 until June 2021
• Update on destinations considering

A tourism tax (tasa turística) only applies in Catalonia and the Balearic Islands.

The following destinations are considering but unknown if or when a tax will be implemented (as of 15 February 2021) .

• San Sebastián  – Potentially proposed between €1 and €5 per person per night depending on star rating of accommodation. Decision postponed to a future date .
• Segovia  – Potentially proposed €1 or €2 per person per night
• Seville  – Potentially proposed €1 or €2 per person per night

The tourist tax (taxa turística) is decided by the regional government (Generalitat de Catalunya) using the flat rate per person, per night by accommodation type and star rating and a day tax is levied on cruise ship passengers.

The regional government has also approved Barcelona City Council to implement a Surcharge in addition to the regional tourist tax, set to be implemented on 1 June 2021. The law allows the Surcharge amount to vary up to €4 depending on the location of the accommodation, but  Barcelona City Council have agreed  the following fixed amounts:

2021 – €0.75 per person per night 2022 & 2023 – €1 per person per night 2024 – €1.25 per person per night

N.B. in the case of early booking of the accommodation, the applicable rate is the one in force at the time of making the reservation provided that the amount of the reservation and the tax is paid at this time.

* 1-3 stars:  €1 regional tax + €0.75 surcharge * 4 stars:  €1.70 regional tax + €0.75 surcharge * 5 stars:  €3.50 regional tax + €0.75 surcharge

How the tax revenue is used

The regional tax revenue is collected by the regional government (Generalitat de Catalunya) with a proportion of the revenue redistributed to local governments to be used for tourism promotion and develop tourism-related infrastructure and services. In November 2019 the Ajuntament de Barcelona announced €4.22 million of this revenue to be used to fund 7 projects in the city.

Revenue from The Surcharge is to be fully retained and managed by Barcelona City Council. The revenue is intended for similar purposes as the regional tax.

Balearic Islands (Mallorca, Menorca, Ibiza, Formentera)

The tourist tax (impost del turisme sostenible) is known as the eco or sustainable tax and is decided by the local government (municipality). The tax applies to visitors staying in commercial accommodation and cruise ship passengers. In low season (1 st November to 30 th April), the tax is reduced by 75%.

A webpage has been published to show which specific projects related to sustainability are funded by the tax.

Disclaimer: While best efforts have been made to verify the accuracy of the information, the information displayed should be used as guidance only.

This content is exclusive to ETOA members

Login here to access it now.

Forgot your password?

Not a member yet?

The ETOA membership opens invaluable networking opportunities to your business, allows you to gain access to critical insights and information and contributes to the campaign for a better regulatory environment in Europe.

• Connect with the global travel trade
• Stay informed of insights, regulations and changes
• Be supported in shaping the tourism landscape

Winter is here! Check out the winter wonderlands at these 5 amazing winter destinations in Montana

• Travel Destinations

How Much Is The Tourist Tax In Spain

Published: November 7, 2023

Modified: December 28, 2023

by Nettle Weintraub

• Hotel Reviews
• Plan Your Trip

Introduction

Spain, with its rich history, vibrant culture, and stunning landscapes, is one of the most popular tourist destinations in the world. Each year, millions of visitors flock to this enchanting country to explore its historic cities, relax on its beautiful beaches, and indulge in its delectable cuisine. However, like many other tourist destinations, Spain has implemented a tourist tax to help fund local infrastructure and support sustainable tourism initiatives.

A tourist tax, also known as a bed tax or city tax, is a fee imposed on visitors to a particular location. It is typically collected by hotels, rental accommodations, or tourist establishments on behalf of the local government. The revenue generated from the tourist tax is used to maintain and improve tourist facilities, preserve cultural heritage sites, and support environmental initiatives.

In Spain, the tourist tax system varies from region to region, with each autonomous community having the authority to determine its own tax rates and regulations. While some regions have implemented a flat-rate fee, others have adopted a tiered system based on factors such as accommodation type, duration of stay, and peak tourism seasons.

In this article, we will provide an overview of the tourist tax in Spain, explore the different types of taxes implemented across the country, and delve into the specifics of how the tax is collected. We will also discuss the exemptions and discounts available to certain travelers, as well as the impact of the tourist tax on tourism in Spain. Lastly, we will compare the tourist taxes imposed by different regions in Spain to give you a comprehensive understanding of the variations in rates and regulations.

So, if you’re planning a trip to Spain and want to know how much you might be charged for the tourist tax, or if you’re simply curious about the intricacies of this system, read on to discover everything you need to know about the tourist tax in Spain.

What is a tourist tax?

A tourist tax, also known as a bed tax or city tax, is a fee imposed on visitors to a particular location. It is a way for local governments to generate additional revenue from tourism and support the maintenance and development of tourist facilities and services.

The concept of a tourist tax is not unique to Spain but is implemented in various countries and regions around the world. The tax amount and collection methods may vary depending on the destination. In some cases, the tax is included in the overall cost of accommodation, while in others, it is collected separately by hotels, rental accommodations, or tourist establishments on behalf of the local authorities.

Typically, the revenue generated from the tourist tax is used to fund projects that directly benefit tourists and the local community. This can include infrastructure improvements, the preservation of cultural heritage sites, environmental conservation efforts, and the development of tourist services and attractions.

While the primary purpose of a tourist tax is to generate revenue, it also serves as a way to manage the impact of tourism on local resources and infrastructure. By implementing a tax, destination authorities can ensure that visitors contribute to the cost of maintaining and enhancing the tourism experience, rather than placing an excessive burden on the local community.

It’s important to note that a tourist tax is separate from other fees or taxes, such as Value Added Tax (VAT), which are applicable to goods and services. The tourist tax is specifically targeted towards visitors and is intended to offset the costs associated with tourism.

Overall, the implementation of a tourist tax allows destinations to balance the economic benefits of tourism with the need for sustainable development and the preservation of cultural and natural resources. It helps create a more equitable tourism system where visitors contribute to the maintenance and improvement of the destinations they enjoy.

Overview of the tourist tax in Spain

In Spain, the tourist tax system is decentralized, with each autonomous community having the authority to regulate and implement its own tax. This means that the tax rates and regulations can vary from region to region.

The primary objective of the tourist tax in Spain is to support sustainable tourism and the development and maintenance of tourist infrastructure. The revenue generated from the tax is used to fund initiatives such as environmental conservation, cultural preservation, and the improvement of tourist services and facilities.

The tourist tax in Spain is typically charged per person, per night of stay, and is applicable to various types of accommodation, including hotels, vacation rentals, campsites, and hostels. Some regions have additional taxes or fees for specific types of accommodation, such as luxury hotels or rural houses.

The specific rates of the tourist tax in Spain can vary depending on factors such as the region, the type of accommodation, and the seasonality of tourism. Generally, the tax rates range from a few cents to a few euros per person, per night.

In addition to the standard tourist tax, certain regions in Spain have implemented special taxes or fees for specific activities or attractions. For example, in Catalonia, there is a tourist tax on cruise ship passengers and a tax on day visitors to certain tourist areas.

It’s important for travelers to be aware of the tourist tax in the specific region they are visiting and to factor it into their travel budget. The tax is typically payable upon check-in or check-out, depending on the accommodation provider’s policies.

Overall, the tourist tax in Spain serves as a means to support sustainable tourism development and ensure that visitors contribute to the preservation and enhancement of the destinations they enjoy. By implementing the tax, Spain aims to strike a balance between the economic benefits of tourism and the need for responsible and sustainable tourism practices.

Types of tourist taxes in Spain

Spain has implemented various types of tourist taxes that differ based on the region and the specific regulations set by each autonomous community. Here are some of the common types of tourist taxes you may encounter when visiting Spain:

• Stay-based tax: This is the most common type of tourist tax in Spain. It is charged per person, per night of stay, and is applicable to various types of accommodations such as hotels, vacation rentals, hostels, and campsites. The tax rate can vary depending on factors such as the region, the type of accommodation, and the seasonality of tourism.
• Special taxes: In addition to the stay-based tax, certain regions in Spain have implemented special taxes or fees for specific activities or attractions. For example, in Catalonia, there is a tourist tax on cruise ship passengers and a tax on day visitors to certain tourist areas. These additional taxes are intended to generate revenue from specific tourist-related activities and contribute to the maintenance and development of the region’s tourism infrastructure.
• Additional accommodation fees: Some regions in Spain have introduced additional fees on top of the standard tourist tax for specific types of accommodations. For example, luxury hotels or rural houses may be subject to higher tax rates compared to other types of lodging. These additional fees are often used to support the improvement and maintenance of higher-end tourism facilities.
• Transportation taxes: While not directly considered tourist taxes, certain transport services in Spain may include additional fees or taxes that are applicable to both residents and visitors. For example, there may be environmental taxes or surcharges on flights or rental cars, which contribute to sustainable tourism initiatives or environmental conservation efforts.

It’s important to note that the specific types of tourist taxes and their rates can vary significantly depending on the region you are visiting in Spain. It is recommended to check the official tourism websites or consult with your accommodation provider to understand the applicable taxes and fees in your chosen destination.

By implementing these diverse types of tourist taxes, Spain aims to generate revenue to support sustainable tourism development and ensure that visitors contribute to the preservation and enhancement of the destinations they enjoy.

How much is the tourist tax in Spain?

The exact amount of the tourist tax in Spain varies depending on the region, the type of accommodation, and the seasonality of tourism. Each autonomous community has the authority to set its own tax rates and regulations. Here is a general overview of the tourist tax rates you may encounter when visiting Spain:

• Stay-based tax: The majority of regions charge a tourist tax per person, per night of stay. The rates can range from a few cents to a few euros per person, per night. The specific rate is determined by the regional government and can be influenced by factors such as the type of accommodation and the tourism season. For example, during peak seasons or in popular tourist areas, the tax rate may be higher.
• Higher-end accommodations: Some regions may have higher tax rates for luxury hotels or upscale accommodations. These establishments may be subject to an additional fee on top of the standard tourist tax. The aim is to generate more revenue from higher-end tourism and contribute to the maintenance and improvement of premium tourism facilities.
• Special taxes and fees: In certain regions, there are special taxes or fees for specific activities or attractions. For instance, cruise ship passengers may be required to pay a separate tourist tax, or there may be taxes on day visitors to certain tourist areas. The rates for these special taxes can vary, so it is advisable to check the specific regulations of the region you plan to visit.

To get accurate information about the tourist tax rates in your desired destination, it is recommended to check the official tourism websites, consult with your accommodation provider, or contact the local tourism authorities. They will be able to provide the most up-to-date information regarding the applicable rates and any discounts or exemptions that may apply.

Keep in mind that the tourist tax is usually payable upon check-in or check-out, depending on the policies of the accommodation provider. It is important to factor in the tourist tax when budgeting for your trip to Spain to ensure you have a clear understanding of the overall costs associated with your stay.

By charging the tourist tax, Spain aims to generate revenue to support sustainable tourism initiatives and maintain and enhance the tourist infrastructure, ensuring a positive and enjoyable experience for visitors.

Exemptions and Discounts for the Tourist Tax

While the tourist tax is generally applicable to all visitors staying in tourist accommodations in Spain, there are certain exemptions and discounts that travelers may be eligible for. These exemptions and discounts aim to provide relief for specific groups or circumstances. Here are some common exemptions and discounts for the tourist tax:

• Children and minors: Many regions in Spain exempt children and minors from the tourist tax or offer discounted rates. The specific age limit and conditions may vary, so it’s important to check the regulations of the region you are visiting. Typically, children under a certain age (e.g., 16 or 18) may be exempt from the tax, while those between certain age brackets may be eligible for a reduced rate.
• Long-term stays: Some regions may offer discounts for stays that exceed a certain number of nights. For example, if you are planning a long-term stay, such as staying for more than seven or 15 nights, you may be eligible for a reduced tax rate. This encourages visitors to stay longer and contributes to the economic sustainability of the region.
• Off-peak season: In certain regions, there may be discounted rates during the off-peak season. This encourages tourism during quieter periods and helps balance the flow of visitors throughout the year. The specific off-peak season and corresponding discount rates may vary depending on the region.
• Residents: Some regions provide exemptions or discounted rates for residents of the autonomous community or municipality. This is to promote local tourism and support the local economy. Proof of residency, such as an identification card or resident certificate, may be required to avail of these exemptions or discounts.
• Special circumstances: Regions may provide exemptions or special rates for individuals with specific circumstances, such as disabled persons, students, or individuals traveling for medical purposes. It is advisable to check the specific regulations of the region you plan to visit to determine if you qualify for any special discounts or exemptions based on your circumstances.

It is important to note that the exemptions and discounts for the tourist tax are determined by the regulations of each autonomous community in Spain. Therefore, they can vary from region to region. It is recommended to consult the official tourism websites, contact the local tourism authorities, or inquire with your accommodation provider to determine if you qualify for any exemptions or discounts and to understand the necessary requirements.

By providing exemptions and discounts, Spain aims to ensure a fair and equitable tourism tax system while also encouraging specific segments of travelers and supporting the local economy.

How is the tourist tax collected in Spain?

The collection of the tourist tax in Spain is typically done by the accommodation providers on behalf of the local government or municipality. Here is an overview of how the tourist tax is collected in Spain:

• Accommodation providers: Hotels, vacation rentals, hostels, campsites, and other types of accommodations are responsible for collecting the tourist tax from their guests. The tax is included in the overall cost of the accommodation or collected separately as an additional fee. It is important to note that each accommodation provider may have its own policies and procedures for collecting the tax.
• Invoice or receipt: Upon payment or check-in, the accommodation provider will provide an invoice or receipt that includes the breakdown of the charges, including the tourist tax amount. This allows guests to have a clear understanding of the taxes they are being charged for their stay.
• Payment at check-in or check-out: The tourist tax is typically payable at the time of check-in or check-out, depending on the policies of the accommodation provider. Some establishments may prefer to collect the tax upfront during check-in, while others may include it in the final bill at check-out. It is advisable to inquire about the payment process and timing during the reservation or upon arrival.
• Tax rates and calculation: The tax rates and calculation methods vary depending on the region and the specific regulations set by each autonomous community. In most cases, the rates are determined per person, per night of stay. The establishment will calculate the tax amount based on the number of nights and the number of guests occupying the accommodation.
• Reporting and remittance: Accommodation providers are required to report and remit the collected tourist tax to the local government or municipality as per the regulations. This ensures that the revenue generated from the tax is properly accounted for and used for the designated tourism-related initiatives.

It is important for travelers to be aware of the tourist tax and its collection process to avoid any confusion during check-in or check-out. It is recommended to review the reservation details, including the tax information, and to keep copies of the invoices or receipts for reference.

By entrusting the collection of the tourist tax to the accommodation providers, Spain ensures a systematic and efficient process that allows for the proper administration and utilization of the tax revenue for the benefit of the tourism industry and local communities.

Impact of the tourist tax on tourism in Spain

The implementation of the tourist tax in Spain has both positive and negative impacts on tourism in the country. Here are some key points regarding the impact of the tourist tax:

• Funding tourism initiatives: One of the primary objectives of the tourist tax is to generate revenue to support sustainable tourism initiatives, infrastructure development, cultural preservation, and environmental conservation. The tax revenue plays a vital role in maintaining and improving tourist facilities and services, enhancing the overall tourism experience in Spain.
• Sustainable tourism development: The tourist tax helps to promote sustainable tourism practices and responsible visitor behavior. By charging a fee, it encourages tourists to consider their impact on the local environment and resources. This leads to a more balanced and sustainable approach to tourism, reducing overcrowding in popular areas and promoting the exploration of lesser-known destinations.
• Supporting local economies: The revenue generated from the tourist tax contributes to the local economies of the regions in Spain. It provides funding for small businesses, local artisans, and service providers, strengthening the economic sustainability of the tourism sector at a grassroots level.
• Preservation of cultural heritage: The funds generated from the tourist tax are utilized for the preservation and restoration of cultural heritage sites, monuments, and historical landmarks. This ensures that Spain’s rich cultural heritage is protected and can be enjoyed by both present and future generations of visitors.
• Potential impact on tourism demand: The imposition of a tourist tax can slightly affect the overall cost of a trip, potentially impacting the demand for tourism in certain regions. However, studies suggest that the impact is generally minimal, particularly for popular tourist destinations like Spain, where the demand remains high despite the additional tax burden.
• Perception and visitor satisfaction: Some travelers may view the tourist tax as an additional expense and may be dissatisfied with the concept of paying extra fees. However, if the funds generated from the tax are utilized effectively to enhance the tourism experience, visitors may appreciate the improved facilities and services provided as a result.

It is worth noting that the impact of the tourist tax can vary depending on factors such as the specific region, the tax rates, and the way the revenue is utilized. It is crucial for destinations to strike a balance between generating revenue and ensuring that the tax does not deter visitors or negatively impact the overall tourism experience.

Overall, the tourist tax in Spain plays a significant role in funding sustainable tourism development, preserving cultural heritage, and supporting local economies. By striking a balance between generating revenue and maintaining visitor satisfaction, Spain aims to create a positive and sustainable tourism environment for both travelers and the local communities.

Comparison of Tourist Taxes in Different Regions of Spain

The tourist tax system in Spain is decentralized, with each autonomous community having the authority to set its own tax rates and regulations. This leads to variations in the tourist tax structure across different regions. Here is a comparison of tourist taxes in some prominent regions of Spain:

• Catalonia: Catalonia has a tiered tourist tax system based on the type of accommodation and the seasonality of tourism. The rates range from €0.45 to €2.25 per person, per night, depending on factors such as the accommodation type and location. There is also a separate tourist tax for cruise ship passengers and day visitors to certain areas.
• Balearic Islands: The tourist tax in the Balearic Islands is also tiered based on the type of accommodation and the season. The rates range from €0.25 to €4 per person, per night. The tax is applicable to all visitors aged 16 and over and is higher during the peak tourist season.
• Canary Islands: The Canary Islands do not have a specific tourist tax in place. However, visitors are required to pay the general Value Added Tax (VAT) and other applicable fees on goods and services, including accommodation.
• Andalusia: Andalusia does not have a region-wide tourist tax. However, certain municipalities within the region, such as Malaga and Seville, have implemented their own city taxes for accommodation. The rates and regulations vary depending on the specific municipality.
• Valencia: In the Valencian Community, a tourist tax is not currently in operation. However, some municipalities, including Valencia City, have introduced a municipal tourist tax for specific types of accommodations. The rates and regulations apply to visitors aged 16 and over and may vary in different municipalities.

It is important to note that these are just a few examples, and the tourist tax rates and regulations can vary across other regions of Spain. It is advisable to check the official tourism websites or consult with your accommodation provider to understand the specific tourist tax requirements and rates in the region you plan to visit.

While the variations in tourist taxes can be initially overwhelming, they reflect the autonomous nature of the regions and allow for flexibility based on local needs and tourism demands. The divergent approaches offer a diverse landscape, allowing visitors to choose destinations that align with their preferences and budget.

The tourist tax system in Spain serves as a means to generate revenue for sustainable tourism development and support the maintenance and enhancement of tourist infrastructure. While the specific rates and regulations vary from region to region, the overall objective remains consistent across the country.

By implementing the tourist tax, Spain aims to strike a balance between the economic benefits of tourism and the need for responsible and sustainable tourism practices. The revenue generated from the tax contributes to initiatives such as environmental conservation, cultural preservation, and the improvement of tourist services and facilities.

It is important for travelers to be aware of the tourist tax when planning a trip to Spain and to factor it into their travel budget. Understanding the specific tax rates and any exemptions or discounts that may apply can help visitors better plan their expenses and ensure a smooth check-in or check-out process.

Despite the additional cost, studies suggest that the impact of the tourist tax on tourism demand in Spain is generally minimal. The country’s natural and cultural attractions, coupled with its renowned hospitality, continue to attract millions of visitors each year.

While the tourist tax may be seen as an added expense by some, it ultimately contributes to the sustainability of the tourism sector. The funds generated from the tax are used to maintain and improve tourist facilities, preserve cultural heritage sites, and support local economies.

In conclusion, the tourist tax in Spain serves as a mechanism to support the preservation and development of the remarkable destinations that attract tourists from around the world. By implementing this tax, Spain is able to ensure that tourism remains a sustainable and responsible industry, benefitting both visitors and the local communities for years to come.

• Privacy Overview
• Strictly Necessary Cookies

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.

A complete guide to the Tourist Tax in Spain: What it is, who must pay it and what are the consequences of non-compliance.

• Post author By Valery Saavedra
• Post date 08/08/2023
• No Comments on A complete guide to the Tourist Tax in Spain: What it is, who must pay it and what are the consequences of non-compliance.

What is the Tourist Tax in Spain?

The Tourist Tax in Spain is a tax applied in certain tourist destinations, with the main purpose of financing conservation and sustainability projects . It is characterised by the fact that it is an economic contribution that visitors make during their stay, aimed at maintaining and protecting the natural and cultural environment of the place.

The money collected through the Tourist Tax is directly invested in actions that promote environmental conservation and sustainability. This can range from the protection of natural areas, to projects to improve energy efficiency or promote the use of renewable energies.

Tourist Tax plays a crucial role in promoting responsible tourism . By paying it, travellers contribute to the care and preservation of the natural and cultural resources of the destination they visit. It raises awareness of the environmental impact of tourism and encourages visitors to adopt more environmentally friendly behaviour.

Where is the Tourist Tax paid in Spain?

The tourist tax, also known as ecotax , is applied in several regions of Spain. However, two prominent tourist destinations where this tax is levied are Catalonia and the Balearic Islands .

In Catalonia , the implementation of the tourist tax became effective from 2012. Visitors must pay a fee that varies depending on the category of accommodation and location. It ranges from 0.60 euros to 3.50 euros per night and person.

On the other hand, in the Balearic Islands , the Tourist Tax was introduced in 2016. Here, the amount to be paid depends on the season (high or low) and the type of accommodation, ranging from 0.25 euros to 2 euros per night and person in high season.

As for how this tax is paid, in both regions it is generally collected at the end of the stay, being the responsibility of the establishment to collect it and its subsequent declaration to the tax authorities.

It is important to bear in mind that each Spanish autonomous community has its own rules and rates with regard to the Tourist Tax, so it is always advisable to find out more before travelling.

Thus, although both Autonomous Communities (Catalonia and Balearic Islands) charge a tourist tax, there are significant differences in terms of how much and how it is paid . At Chekin, we are well-aware that calculating tourist taxes is a complex and tedious process. There are many parameters involved that vary between regions and countries. But don’t worry, our software calculates them automatically for you .

What VAT is levied on the tourist tax?

The Tourist Tax , also known as ecotax, is subject to a value added tax (VAT) in Spain. This tax has a tax rate of 10% . This means that 10% of the total amount of the tourist tax goes to VAT .

It is important to note that this VAT is not added to the amount of the Tourist Tax, but is included in the final amount paid by the tourist. For example, if the Tourist Tax is 2 euros per night in an accommodation, the VAT would be 0.20 euros.

This percentage of VAT on the Tourist Tax is fixed and does not vary according to factors such as the type of accommodation or the season. In fact, it is applied uniformly to all transactions related to the tourist tax.

Payment of VAT is compulsory and non-compliance may lead to penalties. As with the Tourist Tax itself, it is the responsibility of the accommodation owner to collect this VAT and remit it to the tax administration.

Which cities have a tourist tax?

In Spain , several cities and regions have implemented the tourist tax to finance sustainability and conservation projects. In Catalonia, the cities of Barcelona, Girona, Tarragona and Lleida apply this tax to visitors. Each city has its own charging system and rates vary depending on the type of accommodation and the season. You can find our legal guide for Catalonia to make sure your property meets all requirements such as Tourist Taxes.

The Balearic Islands have also adopted the ecotax . In this case, Palma de Mallorca, Ibiza and Menorca are destinations where this tax is charged to tourists. As in Catalonia, the rates may depend on the type of accommodation and the season.

It is important to note that the money collected through the tourist tax is used to finance projects that seek to preserve the environment and promote more sustainable tourism in these regions. In the following section, we will focus on who is obliged to pay this tax.

How can I automate the Tourist Tax collection process?

To facilitate the collection of the ecotax, there are tools that allow you to automate this process . One of these is Chekin , a digital platform that allows you to manage guest registration and payments, including the collection of ecotax. This tool is especially useful if you manage multiple properties or if you don’t live close to your holiday properties to be able to do it remotely.

With Chekin , you can:

• Automate the Tourist Tax calculation based on guest data and local regulations.
• Ask your guests to pay the tourist tax during online check-in.
• Manage your collections and collect the tourist tax in an automated way thanks to Chekin .

Adopting this technological solution can save you time and avoid errors in the calculation and collection of the ecotax . Remember, it is not only about complying with your tax obligations, but also about contributing to sustainable tourism.

Who has to pay the Tourist Tax in Spain?

The payment of the Tourist Tax in Spain is an obligation for all tourists over 16 years of age who stay in tourist establishments, from hotels to tourist flats, campsites and cruises. Even those who stay overnight in their private boat in the waters of the Balearic Islands are subject to this tax.

There are specific categories of individuals and entities that are obliged to pay. Owners of tourist establishments are responsible for collecting the Tourist Tax from their guests and transferring it to the government.

However, there are some exceptions as to who is exempt from paying the Tourist Tax. For example, persons with a recognised disability of 33% or more and their companions, children under the age of 16, people travelling for work purposes, or those in urgent or emergency situations are exempt from payment.

There are also specific situations where the Tourist Tax is not required. If an individual stays for a long period (more than 20 consecutive days) in the same establishment, the days from the 20th day onwards are exempt from payment.

Thus, it is important to be aware of the rules and regulations regarding the payment of the ecotax to avoid any inconvenience during your stay. Tourist Taxes by Chekin calculates the tourist rates for any place in the world, automatically meeting the official requirements of your country or region.

How much is the Tourist Tax? Amount at each site and exceptions

The ecotax, also known as tourist tax , varies depending on the location and type of accommodation. In Catalonia, for example, the amount can range from €0.60 to €3.50 per person per night, while in the Balearic Islands the amount can be as much as €2 per night.

There are certain exceptions to this general rule:

• Children under the age of 16 are exempt from this fee.
• In the Balearic Islands, during the low season (November to April), a 50% discount applies.
• Long term accommodation: if the stay exceeds 12 days, a 50% discount will be applied from the 13th day onwards.

These amounts serve as a reference to understand how much the Tourist Tax could be. However, it is crucial to consult updated local rates to get an accurate figure and to be aware of any changes in exceptions or discounts.

What happens if I do not pay the Tourist Tax?

Failure to pay the Tourist Tax can lead to severe legal consequences . It is important to understand that this tax is not optional, but a legal duty for certain tourists and accommodation establishments.

Penalties or fines vary depending on the location and the seriousness of the infraction. For example, in the Balearic Islands, the fine can be up to 400,000 euros for tour operators who do not charge the Tourist Tax. In Catalonia, fines can be equally high for those who evade this tax. Moreover, repeated non-compliance can lead to additional restrictions and possible legal action. One notable case is that of a hotel in Mallorca that was forced to close for five days for non-payment of the Tourist Tax.

It is crucial to understand the importance of compliance with the Tourist tax , also known as ecotax, not only to avoid legal sanctions, but also to contribute to the sustainable development of tourist regions.

When is Tourist Tax levied?

The specific time at which the Tourist Tax is charged may vary depending on the location. Generally, this fee is charged at check-in or upon arrival at the accommodation. However, in some cases, it may be included in the total price when booking.

In relation to tax administration, the collection and management of the Tourist Tax is carried out by the relevant local authorities. These funds are then transferred to the treasury and earmarked for conservation and sustainable projects.

The funds raised through the ecotax play a crucial role in financing sustainable and conservation projects. These projects can address a variety of issues important to the local community, such as the conservation of protected natural areas, improvements to tourism infrastructure or environmental education programmes.

How much is the tourist tax in Catalonia?

The tourist tax in Catalonia varies depending on the type of accommodation and the season. For a 5-star hotel, the rate is 3.50 euros per night during the high season. In the case of tourist flats, you pay 2.25 euros per night all year round.

It is important to note that this amount collected is used to finance projects linked to sustainable tourism in Catalonia . These can range from the preservation and improvement of natural and cultural spaces to initiatives to promote responsible tourism.

This tourism tax model seeks to balance the impact of tourism with the benefits it brings to the region. It ensures that each visitor contributes directly to maintaining and enhancing the unique and attractive features of Catalonia that have led to its choice as a destination.

How much tourist tax do you pay in the Balearics?

If you plan to visit the beautiful Balearic Islands, it is important to be aware of the tourist tax you will have to pay. The specific amount varies according to the season and type of accommodation. In high season (May to October), five-star hotels and four-star superior accommodation charge a daily rate of €4.00 per person, while holiday homes charge €2.00. During the low season, these rates are halved.

It is worth mentioning that these funds raised are used to promote sustainable tourism and protect the unique natural and cultural heritage of the Balearics. Thus, by paying this fee, you are directly contributing to the conservation of these paradisiacal Spanish destinations.

Who pays the Tourist Tax in Catalonia?

In Catalonia, the tourist tax is the responsibility of visitors over the age of 16. This obligation falls mainly on tourists staying in any type of tourist accommodation establishment, which includes hotels, tourist flats, rural houses, campsites and cruise ships.

It is important to note that there are some exceptions to consider. For example, people staying in tourist accommodation establishments located within the Ebro Delta Natural Park are not subject to this tax.

In addition, guests who prove that they are undergoing medical treatment during their stay are also not obliged to pay it. These details are crucial to understand who is exempt from paying the tourist tax in Catalonia.

Who pays the Tourist Tax in the Balearics?

In the Balearic Islands, the ecotax is a liability that falls mainly on tourists. In general, anyone staying in a registered accommodation establishment, such as hotels, tourist flats and similar places of accommodation, is obliged to pay this tax.

Visitors of all ages are subject to the tax, although there are certain exceptions. For example, Balearic residents staying in a tourist establishment on the islands are not obliged to pay the eco-tax. In addition, children under the age of 16 are also exempt from payment.

In summary, it is essential to understand who is obliged to pay the ecotax in the Balearics to avoid misunderstandings and to ensure compliance with this sustainability-oriented measure.

Privacy Overview

When cruises are cheaper than trains and planes

P lanes, trains and automobiles may be the obvious and often most cost-effective ways to get from A to B but, surprisingly, cruise ships can be, too.

Repositioning sailings are the unsung bargains of the cruise world, where canny travellers can often pick up voyages at vastly reduced rates – and give more orthodox forms of transport a run for their money.

The key to finding such a deal comes from studying cruise schedules for sailings – some of which may be just one or two nights – that go directly from one place to another. 

While low-cost flights are generally accepted as the cheapest way to travel internationally, global airfares are on the rise – and by the time you pile on charges for luggage, food and drink and the cost of travelling from the airport to the city centre – where cruise ships invariably dock – taking the sea-going route can emerge as the unlikely winner (and you’ll arrive in considerably more style).

It can even work for travelling to different parts of the UK, though options tend to be restricted to Fred Olsen Cruise Lines when it repositions ships on overnight voyages between the likes of Southampton and Newcastle, Rosyth or other ports further north. 

Italy to Spain from £54

For city-hopping stays in and around Europe, MSC Cruises is the one to watch, as it enables customers to book many of its Mediterranean cruises on a port-to-port basis, rather than taking the entire voyage.

For instance, travellers can book one-nighters between Genoa and Barcelona or Genoa and Marseilles for as little as £54pp, while an overnight sailing between Valencia and Marseilles is £72pp, with these prices obviously including meals. The £54 figure is based on an October 11 departure. For a flight from Genoa to Barcelona on the same date, Skyscanner (skyscanner.net) quotes a service with ITA Airways for £111.99pp, including luggage.

Tony Andrews, the managing director of travel agency cruise.co.uk, says: “MSC doesn’t talk about this enough, as these one-nighters are a great way for people to have a city-break-style experience with a cruise as part of it. It’s a really interesting way to do it.”

The leisurely way to cross the pond

Transatlantic crossings are another potential area to pick up a sea-going bargain, but it’s a question of waiting until the price is right, as rates continually fluctuate.

Many lines offer transatlantic repositionings in spring and autumn, while Cunard runs the only regular crossings between Southampton and New York on its liner Queen Mary 2.

On one occasion some years ago, when prices dropped to just a few hundred pounds, I was sailing from Southampton on the QM2 and met a passenger who had opted to do the same purely because the rates were so much cheaper than flying and he wasn’t in a rush (the crossing takes a week).

Cunard’s prices have since risen overall, but there are still reduced rates on some departures that make this tactic worth pursuing if you fancy a more leisurely way to cross the pond.

Alison Earnshaw, the managing director of online agencies Cruise 118 and Six Star Cruises, says that when rates drop to £600 or £700, taking the ocean route becomes more cost-effective as transatlantic flights have become so expensive.

Another plus is the lack of luggage restrictions, because on cruises you can famously take as much as will fit in your cabin.

“We’ve had people booking to sail to see family in the States with lots of luggage that they’re taking out for them, and then flying back lighter,” she explains. “Alternatively, we’ve had customers who’ve flown to New York for the shopping and sail back as they can bring as much as they want.”

Swap Blighty for Barbados – for £1,129

The Caribbean is another region that comes up trumps for value, with P&O Cruises offering a two-week repositioning voyage from Southampton to Barbados (with stops in Antigua, St Kitts and St Lucia) from £1,129. This price is for an October 18 departure, and includes the flight back to Britain. 

A return fare to Barbados with British Airways (including luggage) during the same period is £733pp. Inter-island flights with Caribbean Airlines (caribbean-airlines.com) between Barbados and other islands in this itinerary amount to approximately £714pp. Add in hotel stays and it’s clear just how much you can save by taking to the water. 

Going global

Miles Morgan, the founder of Miles Morgan Travel, cited world cruises as another option for good-value deals, when cruise companies carve itineraries into segments if they haven’t been selling well, enabling customers to buy legs such as Sydney to Singapore.

“You need to look at sailings a few months in advance, as this is when they tend to be carved up,” he says. “So look now for autumn sailings and at Christmas for the spring. There might be nothing going or you might do well.”

I soon found a 17-night sector of a world cruise on Cunard’s Queen Victoria, departing Singapore on March 26 and arriving in Cape Town on April 12. It calls at Sri Lanka, Mauritius and Port Elizabeth in South Africa. From £1,099pp, not including flights, it works out at £64pp a night – about the same as a Travelodge. 

Flights for the same routing between Singapore and Cape Town for the same time period via Skyscanner amount to approximately £1,150pp, including luggage. Another win for the cruise. 

Sign up to the Front Page newsletter for free: Your essential guide to the day's agenda from The Telegraph - direct to your inbox seven days a week.

Money blog: 'Good news' as major drop in energy bills predicted in July

A significant drop in energy prices has been forecast for July. Read about this and all the latest consumer and personal finance news in the Money blog - and leave a comment or your money problem in the box below.

Friday 17 May 2024 14:03, UK

• 'Good news' as major drop in household energy bills predicted
• 'Seismic shift' as number of bank branch closures passes 6,000
• How much it costs to send your children to private school - as figures reveal major change
• New Greggs stores to open in these locations
• Drivers hit by 'unfairly high margins' on fuel

Essential reads

• Lowest buy-to-let mortgage rates revealed
• Is more expensive steak better for you?
• The rise of Michelin starred 'fast food'
• Basically...  What is PIP - and what could government changes mean?
• How to make sure your car passes its MOT
• Cheap Eats:  Michelin-star chef reveals his top steals in London - including an unbeatable sub sandwich
• Money Problem: My workplace wants to pay us by the minute - what can I do?
• Best of the Money blog - an archive

Ask a question or make a comment

The energy price cap is set to fall by about 7% in July, a leading thinktank has said. 

Cornwall Insights said: "For a typical dual fuel household, we predict the July price cap to be £1,574 per annum" - a drop from £1,690.

Looking further ahead, it forecasted the cap to rise again slightly in October, before falling again in January next year. 

Reacting to the news, Uswitch said the predicted drop was "clearly good news". 

"The future still remains uncertain, and with the price cap changing every three months – currently expected to rise in October before falling slightly in January –  it's crucial not to be complacent," Richard Neudegg, director of regulation, said. 

However, "a predicted 7% drop in energy prices in July is clearly good news, with the price cap looking likely to hit its lowest level in over two years", he said. 

He also urged  households who want to lock in rates for price certainty to run a comparison to see what energy tariffs are available to them.

"There are many 12-month fixed tariffs available at rates cheaper than the current price cap, and even some that are 2% below these new predicted July rates," he said. 

Cristiano Ronaldo has topped Forbes' list of highest-paid athletes for the fourth time in his career.

Ronaldo became the world's highest-paid athlete after his move to Saudi Arabian side Al Nassr and Forbes said the 39-year-old's estimated total earnings were around $260m (£205m) - an all-time high for a football player.

His on-field earnings amounted to $200m (£158m) while off-field he earned $60m (£47m) thanks to sponsorship deals where brands make use of his 629 million Instagram followers.

Spanish golfer Jon Rahm took second place following his switch to Saudi-backed LIV Golf.

Rahm earned $218m (£172m) and joins Ronaldo as the only two athletes to earn over $200m.

Third on the list is record eight-time Ballon d'Or winner Lionel Messi, who switched to Major League Soccer team Inter Miami, which helped the Argentine World Cup winner earn $135m (£107m).

The 36-year-old earned $65m (£51m) in on-field earnings but $70m (£55m) off it from deals with major sponsors such as Adidas and Apple.

Los Angeles Lakers forward LeBron James came in fourth at $128m (£101m), while fellow NBA star Giannis Antetokounmpo of the Milwaukee Bucks made fifth with $111m (£88m).

France football captain Kylian Mbappe dropped down to sixth with $110m (£87m).

French striker Karim Benzema, who also moved to Saudi Arabia, is eighth on the list with $106m (£84m), followed by Golden State Warriors guard Stephen Curry with $102m (£80m).

Lamar Jackson is the only NFL player on the list, in 10th place with $101m (£80m), thanks to the signing bonus negotiated into his new Baltimore Ravens contract last year.

The number of new pupils joining private schools has fallen by  2.7% since last year, according to the latest figures.

Data from the Independent Schools Council (ISC) shows families are now paying more than £18,000 a year on average to send their children to private school.

This is an 8% rise in school fees for the 2023-2024 academic year compared with the year before.

But as fees soar, figures show a 2.7% drop in the number of new pupil applications - this is the biggest fall since the ISC started collecting data in 2011.

Every Friday we get an overview of the mortgage market with independent experts from  Moneyfactscompare.co.uk . Today, finance expert Rachel Springall outlines what's been happening within the buy-to-let market…

A handful of lenders moved to tweak the fixed rates they charge on buy-to-let mortgages over the past week. 

Paragon Bank launched some new "portfolio" and "green" fixed mortgages, and Aldermore pulled its limited edition five-year fixed rates, max 65% loan-to-value. 

Buckinghamshire Building Society also launched new deals onto the market, and Claire Askham, head of mortgage sales said: "The decision to increase our BTL lending to 80% represents a positive move for the sector as we continue to see landlords appraising their portfolios through divesting, refinancing and taking advantage of a variety of property-related opportunities as they arise."

Week on week, there has been minor moves to the overall average fixed buy-to-let rates, with the two-year remaining unchanged at 5.62% and the five-year falling by 0.02% to 5.59%.

This week the lowest two-year fix for buy-to-let customers at 75% loan-to-value comes from Metro Bank, priced at 4.19%, which charges a percentage booking fee of 5.00% of the mortgage advance and is available to second-time buyers and remortgage customers borrowing a maximum of £2m. 

There is another option from the same lender which carries an incentive package just for remortgage customers, but it has a lower maximum advance of £1.5m.

If you are looking to borrow more, then Suffolk Building Society has the lowest two-year fix for buy-to-let customers at 80% loan-to-value priced at 4.79% for second-time buyers and remortgage customers. 

The deal charges a percentage completion fee of 3.00% of the mortgage advance as well as a flat £199 booking fee.

Remortgage customers will receive a free valuation and free legal fees incentive.

A five-year fixed buy-to-let mortgage may be more appealing for you to guarantee your monthly repayments for longer. 

If you looking to borrow at 75% loan-to-value, HSBC has a deal for remortgage customers priced at 4.33%, which carries a free valuation and free legal fees incentive package but charges a flat £3,999 product fee.

If you are looking to borrow more, then Furness Building Society has the lowest five-year fixed buy-to-let deal at 80% loan-to-value priced at 5.39% for second-time buyers and remortgage customers. It charges a booking fee of £995 and includes an £250 cashback incentive. 

Remortgage customers will also receive a free valuation. This deal also happens to be a Best Buy for a five-year fixed deal at 80% loan-to-value.

Best Buy alternatives

The lowest buy-to-let rates may carry both a flat product fee and an arrangement fee which is based on a percentage of the mortgage advance, so a Best Buy package may be more suitable if you are looking to save on the upfront cost of any deal. 

You might also want a deal to cover a valuation or legal fees. A Best Buy buy-to-let mortgage could be the most cost-effective choice in this instance, but it's worth seeking advice before entering any arrangement.

This week the top packages on a two-year fixed buy-to-let deal at 75% loan-to-value comes from HSBC, priced at 4.69%, which comes with a free valuation and charges a £3,999 product fee and is available to second-time buyers. 

If you want a loan with a lower upfront fee, then HSBC also has a Best Buy deal priced at 4.94% at 75% loan-to-value, which carries a free valuation and charges a £1,999 product fee and is available to second-time buyers.

If you are looking to borrow more, then Furness Building Society has a Best Buy two-year fixed buy-to-let deal priced at 5.73% at 80% loan-to-value for second-time buyers and remortgage customers. It charges a fee of £995 and includes a £250 cashback incentive. Remortgage customers will also receive a free valuation.

A five-year fixed buy-to-let mortgage may be more appealing for you to guarantee your monthly repayments for longer. If you looking to borrow at 75% loan-to-value, HSBC has a Best Buy deal priced at 4.39%, which carries a free valuation and charges a £3,999 product fee. 

If you want a loan with a lower upfront fee, then HSBC also has a Best Buy deal priced at 4.64% at 75% loan-to-value, which carries a free valuation and charges a £1,999 product fee.

If you are looking to borrow more, then Furness Building Society has a Best Buy five-year fixed buy-to-let deal priced at 5.39% at 80% loan-to-value for second-time buyers and remortgage customers. 

It charges a booking fee of £995 and includes an £250 cashback incentive. Remortgage customers will also receive a free valuation. This deal also happens to be the lowest rate on a five-year fixed deal at 80% loan-to-value.

By James Sillars , business reporter

A lack of strong corporate updates did for the FTSE 100 on Thursday.

A flat end to the day has been followed by a flat end to the week, with the index falling almost 0.1% to 8,433 in early deals on Friday.

Very little around for investors to ponder.

Developments this morning included pharmaceutical firm GSK saying it had raised £1.25bn from selling its entire remaining stake in Haleon.

The consumer healthcare firm was spun out of GSK almost two years ago.

One other announcement of note came from Sainsbury's.

It revealed a five-year strategic partnership with Microsoft that will see generative AI used to boost personalised shopping experiences for consumers, improve search functions and make staff working practices more efficient.

The financial terms were not disclosed. Its shares were 0.4% higher.

Away from the equity markets, it's worth taking a quick look at how oil is finishing the week.

Brent crude is trading above $83 a barrel on evidence of rising demand.

Prices at these levels should not have an impact at the fuel pumps but small recent declines in average costs could be reversed if the upwards oil price trend continues.

Greggs will open eight stores in the next few weeks, as the company continues its expansion plans 

The bakery said it would open a total of 180 new branches before the end of this year. 

We were told earlier this year that the famous sausage roll-seller would open new stores in London, Cambridge and Sale, but Greggs has now revealed where its next eight new branches will be. 

Here are the locations of the eight new sights, revealed by the bakery to The Sun:

• Saffron Walden, Market Place, England
• Bangor, Carnarfon Road, Wales
• Birmingham Prime Park, England
• Brierley Hill, Merryhill, England
• Consett Delves Lane Drive Thru, County Durham, England
• Edinburgh, 60-61 Seafield Road, Scotland
• Glasgow, Argyle St, Scotland
• Porth, U3C Geilligron IE, Wales

Drivers are suffering from "unfairly high margins" on fuel sales, Energy Secretary Claire Coutinho has been warned.

In a letter to the cabinet minister, the RAC said the Competition and Markets Authority (CMA) must be given the power to take "meaningful action" against companies charging too much for petrol and diesel.

The average retailer margin - the difference between the amount they pay for fuel and the pump price - has been above 18p per litre for diesel since 7 May and is nearly 12p per litre for petrol, RAC head of policy Simon Williams wrote.

The long-term average for both fuels is 8p.

The RAC believes if retailers charged "fairer" margins, the average price of a litre of petrol and diesel would be around 145p, down from the current prices of 150p per litre for petrol and 157p per litre for diesel.

Mr Williams said the current margins being charged by larger retailers in particular were "extremely unfair on drivers struggling to get by in the cost of living crisis". 

"It's very concerning to see fuel margins at such high levels, particularly as this is happening under the close eye of the CMA and while retailers are voluntarily sharing their forecourt prices with the intention of increasing competition," he said.

The RAC spokesman added that the situation would only be improved in the long-term if the CMA took "meaningful action against retailers whose margins are deemed not to be mirroring significant reductions in the cost of wholesale fuel".

It can be hard to balance the demands of eating well without spending a lot.

In this series, we try to find the healthiest options in the supermarket for the best value - and have enlisted the help of  Sunna Van Kampen , founder of Tonic Health, who went viral on social media for reviewing food in the search of healthier choices.

In this series we don't try to find the outright healthiest option, but help you get better nutritional value for as little money as possible.

This time we're looking at meat. 

"When it comes to which type of meat you buy, there's a common misconception the more expensive the cut the healthier it is," Sunna says.

"But fatty meat stores more nutrients than their lean counterparts - vitamins like A, D, E, and K are fat-soluble and stored in animal fat - so, a fillet steak may contain less nutrients than its fatty cousin," he adds. 

The science

We typically turn towards leaner cuts of meat due to the common belief that saturated fat from animals is something to be avoided. 

"Yet, the latest science suggests that saturated fat and cholesterol may not be as harmful as researchers once thought they were," Sunna says.

He points to a  2020 review  in the National Library of Medicine that looked at several studies on saturated fat and heart disease - and found that the association between the two appeared to be weak.

That being said, a large amount of fat in your diet is in no way advisable - but don't be afraid to introduce fattier cuts. 

Sunna swears by mincemeat - preferring it to steak if choosing the fattier kind. 

Most supermarkets sell somewhere between 5-20% versions - and Sunna urges shoppers to put the higher percentages in their baskets. 

"Mince beef with higher fat content isn’t just about the added fat-soluble vitamins; it's also about what comes with it," he says.

"The added tendons, ligaments and connective tissue in mince beef provides collagen."

Collagen is a protein - full of amino acids that supports the structure of your skin, hair, and nails. 

It also plays a vital role in maintaining the integrity of your joints and connective tissues. 

"By choosing mince beef with 20% fat, you're getting a broader nutritional profile, including those collagen benefits," he says. 

Using prices from major supermarkets, Sunna compares his the money and the health for major beef products... 

• Fillet steak: Around £35/kg, it's the most expensive cut and doesn't provide as many health upsides as other, cheaper options
• Ribeye steak : Around £24/kg, with added fat that offers more fat-soluble vitamins.
• Rump steak: Around £15/kg, it’s one of the most economical ways to steak and that nice rind of fat will give you the added nutrition.
• Steak mince beef 5% fat: Around £7/ kg, it's premium mince but at over half the price of steak, making a great affordable option, but the lower fat content is only really good for reducing the calories.
• Mince beef 20% fat: Priced at about £5/kg, it's one of the most affordable options that gives you the most health upside - with all the added fat-soluble vitamins, omega 3s and collagen. 

"Swapping a fillet steak a week to 20% mince could save you £182.52 a year and you'd be increasing your nutrition intake considerably," Sunna says.

"Not only does mince beef save you money, but it also provides a versatile base for countless dishes - burgers, meatballs, bolognese, tacos -the possibilities are endless."

Organics and grass-feds

"Whilst all unprocessed meat is healthy, there are benefits to the quality of your meat," Sunna continues. 

"Typically, a local grass-fed cut of meat has higher omega-3 fatty acids which are beneficial for heart and brain health - up to 6x more  in fact than feed-lot cattle," he adds. 

These can often be far more expensive, however. 

"Choosing between fillet steak and mince beef doesn't have to be a battle of indulgence versus health - both have their unique nutritional benefits, but when it comes to a cost-effective, nutritious option, mince beef with 20% fat takes the win," he says.

The nutritionist's view, from Dr Claire Shortt, lead scientist at  FoodMarble ...

While it's fine to consider cheaper cuts of beef over say filet mignon, it's best to moderate red meat intake given potential links to certain cancers. 

Processed meats are more problematic again, especially from a bowel or stomach cancer perspective. In fact, the World Health Organisation classifies them as a Class I carcinogen (i.e. "known to cause cancer"). 

Read more from this series... 

The number of UK bank branches that have closed forever passes 6,000 today, according to the consumer group Which?

Which? said eight Barclays branches were shutting their doors today, taking the total by the end of the day to 6,005.

This equates to more 60% of the bank branch network since Which? began tracking closures in 2015.

The eight Barclays closures relate to branches in Alperton in Wembley, Andover in Hampshire, Bangor in County Down, Bracknell in Berkshire, Hornchurch in Essex, Inverness in the Highlands in Scotland, Liverpool and Streatham in London.

Barclays has closed 1,216 branches, according to Which?

NatWest Group, which comprises NatWest, Royal Bank of Scotland and Ulster Bank, has closed 1,360 branches and Lloyds Banking Group, made up of Lloyds Bank, Halifax and Bank of Scotland, has shut 1,146 sites, the consumer group said.

Which? said 200 closures by various banks were already scheduled for the rest of 2024.

Currently, 24 more bank branch closures have been scheduled for 2025, although more are expected to be announced later this year and next, it added.

While millions of consumers have made the switch to banking digitally, there remains a significant number of people who are not yet ready or willing to make that jump, underscoring the need for accessible alternatives, Which? said.

Sam Richardson, deputy editor of Which? Money, said the closures showed a "seismic shift" had taken place in terms of our banking habits and the character of the British high street.

"While some may hardly notice the closure of their local branch as they seamlessly switch to online banking, for others reliant on face-to-face services, the impact can be disastrous," he said.

Landlords selling properties "represent the single biggest threat to renters", according to the UK's landlord association.

Government data shows 5,790 households were threatened with homelessness between October to December last year due to receiving a notice to end an assured shorthold tenancy (this ends a person's tenancy).

And the National Residential Landlords Association (NRLA) has said 45% have been left needing help because their landlord planned to sell the property in the second half of 2023.

Separately, data from Rightmove found that 50,000 rental properties were needed to bring the supply of rental homes back to pre-pandemic levels.

Ben Beadle, chief executive of the NRLA, said the only answer was to "ensure responsible landlords have the confidence to stay in the market and sustain tenancies".

He said it was "vital" the Renters Reform Bill, which is currently being debated in the House of Lords, "worked for landlords as well as tenants".

"Landlords selling up is the single biggest challenge renters face," Mr Beadle said.

Be the first to get Breaking News

Install the Sky News app for free