SPAIN TOURISM SECTOR THRIVING; RIPE FOR INVESTMENT

SPAIN TOURISM SECTOR THRIVING; RIPE FOR INVESTMENT

SPAIN TOURISM SECTOR THRIVING; RIPE FOR INVESTMENT

Spain’s tourism sector is meeting expectations that it can recover its past glory as a main pillar of the economy if data over the last five months is anything to go by.

And this positive trend is set to fuel investor interest.

So what’s behind the good news?
• In May 2013, 5.8 million international tourists landed on Spanish shores, up 7.4 percent from a year earlier, and a record figure for May,  according to the survey of tourist border movements published by Frontur.
• Spending by these overseas visitors increased 8.9 percent year-on-year in May to just under 5.1 billion euros.
• The accumulated January-May figures, showing a 3.9 percent rise in arrivals from a year earlier, is the highest since 2008, just before the global economic crisis began to bite.

URBAN TOURISM CASHES IN ON PAST INVESTMENT

The traditional beach holiday resorts of Valencia, Catalonia and the Balearic Islands continue to attract most foreign visitors.

Urban Tourism is also on the up-and-up as more travellers prefer to explore Spain’s culture and heritage rather than work on their suntan.

Spain comes only second to Italy in the number of historic monuments it can boast and is now looking to downplay the seasonal nature of its tourism and draw in overseas visitors all year round.

Urban tourism accounts for 16 percent of gross domestic product of the major cities, according to industry association Exceltur.

Ironically, much of the momentum gathering around urban tourism has been facilitated by Spain’s decade-long economic boom when some of the best road and rail transport infrastructure in Europe was rolled out country-wide.

While many of the regional airports constructed were unneccessary and hugely over budget, they attracted many “low cost” airlines which in turn brought more visitors.

Spain’s golf courses have long held an attraction for visitors, but now its gastronomy and wines are on the agenda of foreign tour operators who organise trips to wineries in different regions.

The historic significance of many of these locations is an added incentive for the discerning traveller.

INVESTMENT OPPORTUNITIES

Consolidating its strong performance in 2012, Spain’s tourism sector accounts for more than 11 percent of gross domestic product.

It is ripe for acquisitions and joint ventures, particularly in sub-sectors such as hotels, food and sports.

In 2011, government-run Qatar Sports Investment reached a sponsorship deal worth 30 million euros a season with Barcelona football club.

In January every year, Madrid hosts The International Tourism Fair (FITUR), the largest business and promotional forum for the tourist industry worldwide. This is an excellent platform for schmoozing and identifying potential investment opportunities.

If you are looking to invest in Spain’s tourism sector, contact Argali Abogados.

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