Wednesday, June 18, 2025
Hotel prices in Spain have risen sharply once again, with a 7% increase on top of the 46% surge witnessed since the pandemic began. This price hike is causing concern, especially among UK travelers, as the cost of staying in Spain continues to climb. With the influx of tourists to the country, both visitors and residents are feeling the pressure of rising costs.
Explosive Growth in Spain’s Tourism Sector
Spain’s tourism sector is experiencing a boom like never before, with international arrivals at record-breaking levels. Total tourism spending is forecasted to reach around £714 billion (€838 billion) in 2025, reflecting a 70% increase in the number of tourists since 2021. While this surge in tourism is benefiting the Spanish economy, it has also contributed to the sharp rise in accommodation costs, especially in Spain’s popular coastal destinations.
Accommodation rates in Spain’s beach resorts saw a significant increase of 7.3% last summer. The average cost for a hotel room went from €182 (£154) to €195 (£164), adding to the previous 46% increase since the pandemic began. These price hikes are making Spain an increasingly expensive destination for travelers, particularly those on a budget.
This rise in accommodation costs is not confined to coastal areas alone. Hotels and rental properties across the country are adjusting their prices to take advantage of the growing demand. As a result, securing affordable lodging has become more difficult for tourists, leading many to reconsider their vacation plans or seek other destinations that may offer more affordable options.
Housing Affordability Crisis Amplified by Short-Term Rentals
Spain’s tourism boom has also exacerbated the housing crisis, especially in major cities like Barcelona and Madrid. One of the key factors driving up housing prices has been the rapid expansion of short-term rental properties, particularly through platforms like Airbnb. As more property owners turn to short-term rentals, fewer long-term rental options are available for local residents.
In response to growing concerns over housing affordability, the Spanish government has introduced new regulations to curb the rise of short-term rentals. Starting July 1, Spain will crack down on illegal Airbnb listings and enforce stricter controls on the number of short-term rentals. The goal is to protect local residents and ensure they are not priced out of their neighborhoods by the growing demand for tourist accommodations.
In Barcelona, short-term rental properties have increased by 25% since 2022, while in Madrid, the number has risen by 50%. This surge in short-term rentals has drastically reduced the availability of affordable housing for long-term residents, particularly for young people and low-income families. The housing shortage is further compounded by a reported deficit of 450,000 homes, underscoring the urgent need for more affordable housing options in urban areas.
UK Tourists Remain Spain’s Top Visitors and Biggest Spenders
Despite the rising costs, UK tourists continue to dominate as the largest group of international visitors to Spain. In April 2025, more than 1.6 million British tourists visited Spain, marking an 11.1% increase compared to the same month in the previous year. This growth in UK visitors outpaced other major European markets, such as Germany and France, both of which saw just under 1.3 million visitors each during the same period.
Not only do UK tourists make up the largest share of visitors, but they also account for a significant portion of Spain’s tourism revenue. In April, British travelers were responsible for 16.3% of all spending by international visitors, highlighting the importance of the UK market to Spain’s economy.
However, with accommodation costs continuing to rise, there are concerns that some UK tourists may start to reconsider their travel plans. The increasing cost of staying in Spain, particularly in high-demand tourist spots, could lead some travelers to seek more affordable options elsewhere. If this trend continues, it may impact the long-term growth of Spain’s tourism sector, as travelers from cost-conscious markets may look to other destinations offering better value.
The Long-Term Impact of Rising Hotel Prices on Spain’s Tourism
While the surge in tourist spending is benefiting Spain’s economy, the escalating costs of accommodation could have long-term implications for the tourism industry. On one hand, the influx of international visitors is a positive economic driver. On the other hand, the rising costs could deter tourists, particularly those on a budget, from visiting or returning to Spain in the future.
The Spanish government’s actions to regulate short-term rentals are a step in the right direction, but more comprehensive measures will be needed to address both the housing crisis and the rising accommodation costs. Spain must find a balance between supporting tourism growth and ensuring that both tourists and residents have access to affordable housing.
For tourists, especially those coming from the UK, planning ahead will be increasingly important in managing the rising costs. Booking in advance, considering less popular destinations, or exploring alternative accommodation options can help mitigate the financial impact of these price hikes.
Promoting Sustainable Tourism Practices for Long-Term Success
Spain’s tourism industry has seen extraordinary growth, but the sharp increase in hotel prices and the growing housing crisis highlight the need for more sustainable tourism practices. It is crucial for the country to find a way to balance the economic benefits of tourism with the need to protect the interests of local residents and maintain affordable housing.
The government’s efforts to regulate short-term rentals are a good first step, but further action is required to ensure that Spain remains an attractive destination without compromising the well-being of its residents. Spain must also invest in sustainable tourism strategies that minimize the negative impact on local communities, including promoting responsible tourism and increasing the availability of affordable housing.
For the tourism sector, this means embracing solutions that allow for continued growth while mitigating the effects of mass tourism. By working together with the government, local communities, and tourism operators, Spain can continue to thrive as a top destination while ensuring that both visitors and residents benefit from its success.
Conclusion: Balancing Growth with Sustainability
Spain’s tourism boom has undeniably contributed to its economic recovery, bringing in record numbers of visitors and substantial revenue. However, the rising costs of accommodation and the worsening housing crisis present challenges that must be addressed to ensure that Spain’s tourism industry remains sustainable in the long term.
Through effective regulation, investment in affordable housing, and a focus on sustainable tourism, Spain can continue to be a leading European destination while maintaining a high quality of life for its residents. By balancing the needs of tourists and locals, Spain can ensure that the benefits of tourism are shared equitably and that its popularity as a travel destination endures for years to come.
