Spanish tourism growth to slow as uncertainties hit travel

Tourism in Spain, Europe’s second largest holiday destination, will grow less than previously expected as economic and geopolitical uncertainties weigh on appetite for travel.

The country’s biggest industry will grow 3.3% in 2025, down from the 4% figure forecast in April, amid a deteriorating international macroeconomic context, according to Exceltur, the main tourism business group. Tourism will still grow more than the 2.4% expansion projected for the Spanish economy.

“The year will be good, but not as good as we expected,” Exceltur Vice President Oscar Perelli said at a press conference in Madrid on Thursday.

Economic growth in Spain outpaced that of peers in the euro area like Germany and France in 2024, with the tourism industry being one of the driving factors. In 2025, tourism is expected to account for 13.2% of the Spanish economy, according to Exceltur.

Spain was the top destination in the European Union in 2024 in terms of nights spent in tourist accommodation, according to Eurostat. About 94 million foreign tourists visited Spain last year, a 10% increase from 2023, according to CaixaBank SA’s research department.

The boom in tourism has led to a backlash, with anti-tourism protests held in cities across Spain.

Exceltur said that the resident population’s growth in Spain’s major tourism regions is the main factor behind the increase in pressure seen in those locations, such as traffic congestion and higher living costs. The availability of more short-term rental properties also helps explain the rise in foreign tourists visiting Spain, the group said.

Spanish tourism has been the main driver for economic growth since the Covid-19 pandemic lockdowns, with record numbers of visitors, mainly to the country’s beaches.