Spanish tourism sector set for strong growth

Hotel Indigo Menorca - image courtesy of IHG
Research carried out by WTTC says Spain's tourism sector will continue to grow over the next decade

The European powerhouse that is the Spanish tourism sector is set to continue its growth over the next decade, despite short term concerns around overtourism.

Research by the World Travel & Tourism Council, and Oxford Economics, has laid out recent progress by the Spanish, noting the sector’s significant contribution to the country’s economic wealth. That same research has also predicted where the sector is likely to be, in pure scale but also economic significance, a decade from now in 2035.

A rebound following the pandemic

In 2024, the research notes Spain enjoyed its best year for tourism since 2019, with close to EUR249 million contributed to Spanish GDP as international tourism spending grew 11% on the previous year. This current year, 2025, those figures are predicted to grow again, reaching new highs with EUR260.5 billion of economic contribution from a sector representing almost 16% of Spain’s total economic activity. The sector provides around 3.2 million jobs, or 14.4% of all employment in the country.

Of the total spending figure, EUR113.2 billion will be contributed by incoming international tourists, a figure up 5.7% on 2024. This is set against a 2.4% growth in domestic tourism spending, at EUR84.9 billion.

“Spain remains a true global tourism powerhouse,” said WTTC president and CEO Julia Simpson. “The forecasts for 2025 are very positive, and with a firm commitment to sustainability and innovation, Spain is well positioned to lead the future of global tourism, even in a challenging international environment.”

Looking a decade ahead, the WTTC and Oxford Economics research suggests the Spanish tourism sector will continue to grow in significance. In 2035, the contribution to Spanish GBP is expected to have grown to EUR315.7 billion, or more than 17% of total GBP, supporting over 4 million jobs.

Currently, the leading source market for tourists arriving into Spain is the UK, accounting for 20% of the total. Behind the UK comes France at 14%, and Germany at 13%. In contrast, 25% of outbound Spanish travellers favour France, ahead of 14% choosing Italy, and 8% each to the UK and Portugal.

One challenge for Spain will be how to accommodate more visitors without further tensions around overtourism. In some Spanish holiday hotspots, notably the Spanish island including the Canaries and Balearics, there have been protests as local people grow tired of the negative impact of tourism. Visitor numbers are blamed for a shortage of affordable housing for local people, as more properties are listed on short term rental platforms such as Airbnb.

Reacting to overtourism

Spanish authorities are replying with restrictions in some areas. The country’s government is looking to ensure all short term rental listings are fully compliant with local laws, for example. In Barcelona, the mayor has effectively banned the development of new hotels, while also seeking to restrict holiday rentals by cutting the issuing of new permits.

While there are pressures on some, the situation also presents opportunities. Budget airlines, working closely with town and municipal authorities, are already looking at new destinations around Spain where tourists and their spending will be welcomed.

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