España's tourism industry predicted to surpass €260 billion by year-end 2025
Spain's Travel and Tourism Sector: A Record-Breaking Powerhouse
As Spain tackles overtourism and implements new rules, its travel and tourism industry is set to smash records, contributing a whopping €260.5 billion to the country's GDP by 2025, equating to about 16% of the national economy. This blockbuster performance is projected by The World Travel & Tourism Council (WTTC), as per a new analysis alongside Oxford Economics.
Eye-popping Numbers
The sector's Economic Impact Research (EIR) highlights an impressive rebound, with a predicted growth of 11% and a contribution of almost €249 billion to GDP in 2024. This growth is expected to soar 4.7% year-over-year.
The main countries contributing to the influx of visitors into Spain in 2024 are the United Kingdom (20%), France (14%), and Germany (13%). Spain's connectivity plays a significant role in this growth, with 24 direct routes to the United States and links to 11 US cities and five Spanish cities, paving the way for a record 4.2 million US tourists. The surge in US tourists marks an 11.2% increase compared to the preceding year.
Meanwhile, French, Italian, British, and Portuguese destinations are the top spots visited by Spaniards, accounting for 25%, 14%, 8%, and 8% of the total, respectively.
Emphasizing Spain's Dominance
The report's forecasts estimates that the sector will represent 3.2 million jobs in Spain by the end of 2025, accounting for 14.4% of total employment. International tourist spending is poised to reach €113.2 billion, with a year-over-year growth of 5.7%, while domestic spending is expected to hit €84.9 billion, inching up by 2.4% compared to the previous year.
Julia Simpson, President and CEO of WTTC, lauded Spain as "a truly global tourism powerhouse," stating that the data reflects a dynamic, resilient, evolving sector that not only drives economic growth but also generates quality jobs and fosters regional development. The 2025 projections are optimistic, with Spain well-positioned to lead the future of global tourism, even in a challenging international environment.
European Union Prospects
In terms of the European Union region, the travel and tourism sector contributed €1.8 trillion to the bloc's GDP, or over 10% of its economy, in 2024. The sector grew by 4.7%, year-over-year, creating 24.6 million jobs, accounting for one in nine jobs across the region.
Domestic travel spending in the EU reached €1 trillion while spending by international visitors amounted to €515 billion. Both figures are expected to increase, with international spending projected to grow by over 11% to €573 billion and domestic spending predicted to inch up by 1.6% to more than €1.1 trillion by 2025, according to the Council.
By the end of 2025, the WTTC anticipates that the regional sector will reach almost €1.9 trillion, accounting for 10.5% of the EU economy. Employment linked to the sector is estimated to total 25.7 million people or 12% of the regional workforce.
The travel and tourism sector plays a vital role in both Spain and the European Union's economic growth, with many countries experiencing significant contributions from this sector. The Spanish example sets a favorable precedent for the broader European tourism industry.
Optimistic Prospects
Spain's hotel market is expected to skyrocket from $25.90 billion in 2024 to $34.54 billion by 2033, with a compound annual growth rate (CAGR) of 3.25% from 2025 to 2033 [4]. This growth is driven by eco-tourism and Spain's cultural allure. The EU as a whole benefits from tourism, and comprehensive EU-wide figures can be found through sources like the European Travel Commission or Eurostat.
- WTTC Article
- CNN Article
- PYMNTS Article
- Strategic Intelligence Article
- Spain's economic impact research indicates that the travel and tourism sector will continue to thrive, with a predicted growth of 11% and a contribution of €249 billion to Spain's GDP in 2024.
- Eco-tourism is one of the key drivers propelling Spain's hotel market, with projections showing a rise from €25.90 billion in 2024 to €34.54 billion by 2033.
- In addition to Spain's impressive growth, the European Union's travel and tourism sector also experienced significant contributions, with the sector contributing €1.8 trillion to the bloc's GDP in 2024.
- Julia Simpson, President and CEO of WTTC, commends Spain's travel and tourism industry as a "truly global tourism powerhouse" and expects Spain to lead the future of global tourism, fostering sustainability, regional development, and quality jobs.
