So You Want to Invest in Spain’s Tourism Industry

So You Want to Invest in Spain’s Tourism Industry

So You Want to Invest in Spain’s Tourism Industry

Spain’s tourism industry is on a roll as both discerning travellers and savvy investors are giving the country the thumbs up.

Last month, Pullmantur Cruises sold a majority stake in its non-cruise related tourist activity to travel operator Gowaii Vacation and private investment firm Springwater Capital. The deal will allow Pullmantur to focus on expanding its cruise activity in the Latin American market.

But what’s the attraction for Gowaii?

To start, Spain has overtaken China to be the world’s third most popular tourist destination, which provides a travel group like Gowaii with a large potential portfolio of clients.

Spain’s position as a gateway to Latin America is an added bonus for Gowaii, whose main travel destinations include Mexico, the Dominican Republic, Cuba and the Caribbean.

TOP TOURISM INVESTMENT BETS: HOTELS, AIRPORTS

In 2013, Spain clocked up a record 60.6 million international visitors, almost two million more than the previous record registered in 2008.

Top destinations were beach resorts like the Balearic Islands, but busy cities like Madrid and Barcelona also welcomed visitors keen to sample their cultural and culinary delights.

And international hotel groups like Hyatt and Four Seasons have been quick to spot the investment opportunities with plans for new hotels and commercial centres in these cities.

Not to be outdone, China’s HNA Group – which already owns 24 per cent of Spanish hotel chain NH Hoteles – is known to be eyeing the regional airport at Ciudad Real to further its expansion goals.

Another option for investors keen to participate in Spain’s booming tourism industry are sub-sectors like food, wine and agrotourism, which have been highly developed over the last few years.

ONLINE TOURISM INVESTMENT OPPORTUNITIES

Spain is the most sought after online tourist destination in Europe, as well as the fourth most popular online investment choice, according to Bloom Consulting’s “Country Brand Ranking.”

The country’s cultural heritage, its beaches and golf courses are the categories with the most Internet searches – 2.9 million out of a total of 7.8 million for the tourism sector as a whole.

As more and more holiday-makers use the Internet for reservations, many investors have seized the opportunity to develop mobile apps for travel and hotel bookings. This business’ growth potential has fuelled M&A amongst Spanish start-ups and also attracted interest from foreign players.  Australian print and online guide giant Lonely Planet’s recent acquisition of trip planner TouristEye is a case in point.

With the Spanish tourism industry association Exceltur predicting growth of 1.8 per cent in 2014, compared with 0.6 per cent in 2013, there will be no lack of future investment opportunities.

For information on investment in Spain’s tourism industry, contact corporate law firm Argali Abogados.

One Comment

  1. Mehrdad says:

    Hi if I buy a medium hotel I can take loan from bank

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