Spain, the world’s second-most visited country after France, is facing a growing wave of anti-tourism sentiment. This backlash, fueled by concerns over rising housing costs and overcrowded cities, has prompted authorities to take action. The focus is now shifting towards promoting luxury tourism, with a crackdown on short-term holiday rentals and an encouragement of high-end hotel development.
Barcelona, the Spanish city most visited by foreigners, has announced a ban on new hotel construction downtown, but existing hotels are allowed to upgrade their classification. The city is also supporting a plan to open 5,000 new hotel beds in other areas, while simultaneously shutting down all 10,000 tourist apartments by 2028. This strategy, according to Barcelona’s Mayor Jaume Collboni, aims to “act on supply” and prioritize “quality tourism” focused on culture, gastronomy, and international conferences. Collboni argues that hotels offer better guarantees of quality and labor rights compared to short-term rentals, which have been linked to a surge in housing costs. Over the past decade, rents have risen by 68% and house prices by 38% in Barcelona.
Tenerife, a popular tourist destination in the Canary Islands, is taking a similar approach. They plan to add 1,000 beds in new luxury hotels near an area known for its concentration of five-star hotels. The goal is to compete as a “quality destination” rather than a low-price option, according to local tourism chief Lope Alfonso.
This shift towards luxury tourism appears to be attracting investment. Spain has overtaken Britain as Europe’s top market for hotel investment, particularly in upscale properties. Investors are also acquiring older hotels to transform them into luxury establishments, fueling a rise in four- and five-star hotel numbers. This trend has been accompanied by a surge in hotel prices, which rose by 7.18% year-on-year in June, outpacing inflation and last year’s increase.
While the focus on luxury tourism has been welcomed by some, including major hotel chains like Melia, concerns remain about its impact on local residents and the affordability of travel to Spain. Many tourists, particularly those drawn by low-cost flights, seek budget-friendly holidays. While hotel demand has increased, demand for tourist apartments has surged even faster, indicating a continuing preference for affordable options. Additionally, protests against the perceived elitism of luxury tourism have sparked debate about its potential to exacerbate inequalities and price out local residents.
Despite these concerns, Spain is forging ahead with its strategy to promote high-end tourism, aiming to attract a more discerning and lucrative clientele. The success of this approach remains to be seen, but it highlights the challenges of balancing economic growth with the social and cultural well-being of local communities in a popular tourist destination.
