Home » Spain Travel News » Spain’s Tourism Emerging as a Giant with Unmatched Growth and Sustainable Strategies to Tackle Overtourism Issues

Wednesday, June 11, 2025

Spain’s tourism industry remains a central pillar of its economy, showing signs of sustained growth in the years ahead. While concerns about overtourism persist, recent data from the World Travel & Tourism Council (WTTC) and Oxford Economics reveal that Spain’s tourism sector is recovering strongly from the pandemic and is poised for even greater economic importance by 2035.

Strong Rebound Following the Pandemic

Spain’s tourism sector has made an impressive recovery since the pandemic, with 2024 marking its most successful year since 2019. International tourism spending saw an 11% increase, adding EUR 249 billion to the nation’s GDP. Projections for 2025 are even more optimistic, with tourism expected to contribute EUR 260.5 billion, accounting for nearly 16% of Spain’s total economic output.

Tourism plays a crucial role in Spain’s labor market, supporting approximately 3.2 million jobs, which accounts for 14.4% of the nation’s total workforce. Of the overall economic impact, international visitors are projected to generate EUR 113.2 billion, reflecting a 5.7% increase from 2024. Meanwhile, domestic tourism spending is anticipated to rise by 2.4%, reaching EUR 84.9 billion, further boosting the nation’s economic activity.

Julia Simpson, President and CEO of the WTTC, commented on Spain’s positive outlook, stating, “The tourism forecasts for 2025 are highly encouraging. With its focus on sustainability and innovation, Spain is well-placed to lead the global tourism sector, even amid challenges on the international stage.”

Long-Term Growth and Projections for 2035

Looking to the future, Spain’s tourism industry is set for continued growth, both in size and economic impact. By 2035, it is anticipated that the sector will contribute EUR 315.7 billion to Spain’s GDP, accounting for over 17% of the nation’s total economic output. Additionally, the tourism sector is expected to generate more than 4 million jobs, further solidifying its role as a key driver of the country’s economy.

Currently, the United Kingdom is Spain’s largest source market for international visitors, accounting for 20% of all arrivals. France and Germany follow with 14% and 13%, respectively. For outbound tourism, 25% of Spaniards travel to France, with 14% opting for Italy, and 8% each visiting the UK and Portugal.

Managing Overtourism and Local Challenges

As Spain’s tourism sector continues to grow, the country faces increasing concerns around overtourism, especially in regions like the Canary and Balearic Islands. Local communities in these areas have expressed frustration over the strain that tourism is placing on housing markets. The growing prevalence of short-term rental platforms like Airbnb has exacerbated housing shortages, with many properties being converted into vacation rentals rather than serving local residents.

This increase in tourist numbers has sparked tensions between local populations and the influx of visitors, as the infrastructure struggles to keep up with demand. In response, Spanish authorities have begun to implement measures to manage the issue. For example, the government is ensuring that all short-term rental listings comply with local regulations. In Barcelona, the mayor has introduced a ban on the development of new hotels and is limiting the issuance of permits for new holiday rentals.

Opportunities for Growth Beyond Popular Destinations

Despite the challenges posed by overtourism, Spain’s tourism sector holds significant opportunities for expansion into less-explored regions. Budget airlines and local municipalities are already collaborating to develop new destinations that can accommodate tourists while reducing the pressure on popular hotspots. These emerging areas will help to distribute the economic benefits of tourism more equitably across the country.

Looking ahead, Spain is committed to fostering sustainable growth, promoting innovation, and implementing smart regulations to ensure the continued success of its tourism industry. By balancing the needs of tourists and local communities, Spain aims to maintain its position as a global tourism leader while securing the long-term health of its economy.