UNQUENCHABLE demand by tourists to come to Spain is starting to reflect in hotel and hostel prices, which surged 7% year-on-year last month.
New figures show that the average price of a room in May cost nearly 50% more than they were in 2019. The data highlight a dramatic rise that has left many holidaymakers and residents alike feeling the pinch.
The trend shows a steady climb since 2017, interrupted only by a sharp dip in 2020 due to COVID-19 travel restrictions.
Since then, prices have soared, with the latest 7% increase adding to a 46% jump since 2019.
READ MORE: Spain is on course to receive 100 MILLION tourists this year – driving prices ever higher
This escalation aligns with a post-pandemic tourism resurgence, with Eurostat reporting a 70% surge in visitors to Spain since 2021, a trend that has continued to gather pace.
Experts suggest the price hike is fuelled by a combination of factors.
Limited new hotel construction and recent restrictions on Airbnb listings as part of a government crackdown to address housing shortages have constrained supply, driving up costs.
Meanwhile, regions like the Balearic Islands, where tourism accounts for nearly half the economy according to European Parliament studies, are seeing the effects ripple through local markets, with housing becoming increasingly unaffordable.
The data comes as Spain welcomed a record 94 million foreign visitors in 2024, a 13% rise from the previous year, with forecasts from CaixaBank Research predicting a 5% growth in tourism GDP for 2024. However, this economic boon is not without challenges, as the Travel and Tour World has pointed out, linking mass tourism to rising property prices that squeeze both locals and long-term expats.
Spain is already on course to once again smash last year’s tourism figures and welcome over 100 million tourists in 2025.
For now, the upward trajectory shows no sign of slowing, leaving many to wonder how Spain will balance its tourism-driven economy with the needs of its residents.
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