27 Feb, 2022 @ 17:45
1 min read

TRIPLE BLOW: How Russia’s invasion of Ukraine could threaten €400 million worth of trade on Spain’s Costa Blanca

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LOWER HOME sales, tourism revenues and rising energy prices due to Russia’s invasion of Ukraine could cost Costa Blanca 400 million euros, reports claim.

The economical implications of the ongoing conflict in Ukraine could have a devastating effect on Spain’s Costa Blanca.

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DOWN: Tourism revenues from Russians and Ukrainians

Some 200,000 tourists and investors moved between the two countries and the Costa Blanca in 2019, according to Turisme Comunitat Valenciana and property development sources. 

Although Russians make up only 2% of the tourist numbers in the region, they do represent a high level of spending per person, an average of 124 euros per day according to statistics. 

Important news for UK buyers looking for holiday homes in Costa Blanca and Murcia areas of Spain
DOWN: House sales to a strong Russian market

Toni Mayor, president of the hotel association HOSBEC, said this sector of tourism can be protected if the conflict: “is redirected through the diplomatic and peaceful path in the next few days.”

Lamenting: “the effects of this conflict will be noticed sooner or later, both in a contraction of reservations and in a new rise in all costs.”

Almost 12,000 Ukrainians live in Alicante province, with Torrevieja housing the highest concentration, with just over 3,000.

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UP: Energy costs, due to reliance on Russian gas

There are also pockets of Russian nationals in the Alicante districts of La Marina Baixa and La Marina Alta. 

Exceltur supports and promotes Spanish tourism excellence around the world.

Their vice-president, José Luis Zoreda, said the war between Russia and Ukraine “is not a positive scenario”, especially after the industry was seen to be recovering from the last wave of Covid-19. 

He said that the war will see energy costs rising because of Europe’s reliance on Russian gas.

He remarked, “any energy cost overrun will probably have to be absorbed by businesses out of their profits.”

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