Tourism and property drive the Spanish economy and boost its construction and other industries, according to a new economic report. The summer 2017 tourist arrivals look set to exceed last year’s record 75 million and second homes sales in all the favourite Costas are returning to pre-crash levels.
These twin economy boosters are in overdrive in Barcelona, Spain’s hotspot for tourism and residential construction. Now the city planners are considering a ban on more holiday apartments that are reducing homes available and affordable for the city’s own residents.
It may temporally reduce the tourist numbers in Barcelona, but such a ban would boost property prices as the demand from tourists and foreign workers to visit, live and work in such an attractive city is likely to continue to rise. Buying an apartment in BCN is going to prove a good investment whether the price is a refurb project at sub €100,000 – still available in central districts – to a glamorous beachside penthouse costing € millions.
The internationally renowned Costa del Sol is the natural home of the buy to let property sector and 2016 has seen higher sales at higher prices, but bringing in higher rental returns. There are still bank-owned bargains with 100% mortgages available on brand-new condominium apartments and newly completed resorts in excellent beachside and hillside locations offer 21st century specifications.
: : Best buy is a charming bijou place at high demand beachfront condo, Las Dunas Park, Estepona. Only 50 metres from the beach it is priced at only €85,000, with private garden and terrace. Legally there is no community charge running into €1,000s – the new owner will enjoy free secure parking, gated entrance, 24-hour cctv security and onsite amenities.
Spain offers “Perfect Cocktail” as top tourism destination
The latest report from the World Economic Forum shows that for the second consecutive year, Spain is the country with the most competitive tourism sector in the world, ahead of France, Germany or Japan. The security, the infrastructure and cultural heritage make the perfect cocktail for an almost unbeatable tourist attraction.
The Monthly Report June CaixaBank Research, “Tourism, travelling to the future” is another irrefutable proof of the dynamism of the tourism sector in Spain, as well as its influence on the economy. According to this, tourism represents 16% of gross domestic product in Spain. In addition, only in 2016 the country received the arrival of 75 million tourists. This figure is forecast to increase to 84 million in 2017.
According to Josep Mestres Domènech, an economist in the Department of Macroeconomics, Strategic Planning and Studies at CaixaBank, the economic benefits generated by these tourists are not only reflected in this sector: “The services directly linked to tourism demand are the most benefited, But they also end up boosting other sectors apparently less linked to the tourism sector, such as industry and the primary sector.”
: : :: Written by Kevin Barnett, international property writer