Tourists from Germany are re-evaluating their vacation choices in a European nation
In an effort to break the price spiral and promote sustainable tourism, Spain's Tourism Minister, Jordi Hereu, has announced a rethink in tourism policy [1]. The strategy focuses on decentralization and the development of less known regions in Spain, aiming to reduce tourist pressure on overcrowded hotspots like Barcelona or Mallorca [2].
Traditionally, Spanish vacationers make up a large part of guests, especially in the off-peak season. However, with record-high prices for accommodations, restaurants, and activities [1], many Spanish families are finding it difficult to afford vacations in their own country and are opting for cheaper travel destinations [3].
This trend is not limited to Spanish tourists. Many German travelers are postponing their Spain plans or looking for cheaper alternatives abroad [3]. Simple vacation packages on Mallorca or Menorca now cost more than trips to Bali [3], a stark contrast that is causing hesitation among German tourists and others.
Official data up to May 2025 indicates a decline in foreign visitors and hotel occupancy rates, including in key tourist areas like the Costa del Sol where occupancy dropped by 2.2% in the first half of 2025 [1]. The minister warns against being misled by deceptive Instagram images of Mallorca [2], as many hotel operators in Spain fear they will lose their important domestic market due to high prices [3].
The main factors contributing to the increased prices in Spanish tourism for the 2025 summer season include significant rises in hotel and flight costs. Between 2021 and 2025, hotel prices in Spain increased by up to 25.7%, while flight prices surged between 10.5% and 62.9% [1]. Economic pressures and geopolitical uncertainties have also contributed to slower growth in Spain's tourism sector in 2025, dampening travel demand and adding to the cost pressures [2][4]. Inflationary effects on accommodation and services have pushed prices up further, impacting international visitors' willingness to travel to Spain.
As July and August 2025 reach new peaks in prices for hotels, vacation rentals, and restaurants [1], the question remains whether the decentralization strategy will be enough to attract tourists to less known coastal sections and inland regions of Spain. The goal is to offer more affordable alternatives to the overcrowded tourist hubs, promoting sustainable tourism and helping Spanish families and businesses in the tourism sector.
[1] Data source: Tourism Economics [2] Spain's Tourism Minister announces a rethink in tourism policy, El Pais [3] Spanish vacationers struggle to afford holidays in their own country, The Local [4] Spain's tourism sector grapples with slower growth in 2025, Reuters
As the cost of traveling in Spain continues to rise, many Spanish families and German tourists are opting for cheaper travel destinations, impacting the tourism industry and businesses in the sector. To counter this, the Spanish government is rethinking its tourism policy, focusing on decentralization and developing lesser-known regions to provide more affordable alternatives, promoting sustainable tourism.
