Home » France Travel News » US, Germany, France and Turkey Drive a Notable Decline in Spain’s Tourism Sector, Affecting Overall Economic Growth

Published on
October 9, 2025

The recent slowdown in Spain’s tourism sector can largely be attributed to reduced spending from key international markets, particularly the US, Germany, France, and Turkey. These countries, which have historically been significant contributors to Spain’s tourism industry, are now showing lower levels of expenditure. The decline in tourist spending from these markets has led to a notable reduction in overall tourism revenues. This shift is further compounded by a weaker than expected growth in international arrivals, which has impacted the broader Spanish economy. With tourism traditionally being a major economic driver, the slowdown in this sector has resulted in a downward revision of Spain’s GDP growth forecast, signaling a ripple effect throughout the economy. The weaker performance from these key markets highlights how the tourism sector is struggling to maintain its previous levels of economic contribution, affecting everything from local businesses to Spain’s economic recovery.

Spain’s once-booming tourism sector is experiencing a notable slowdown, driven by decreased spending from tourists, particularly those from major European and U.S. markets. This shift has led industry group Exceltur to revise its expectations for the tourism sector’s contribution to the national economy in 2025, signaling weaker-than-anticipated growth.

Exceltur’s new forecast projects a 2.8% increase in tourism-related activity next year, down from the 3.3% growth previously estimated in July. This is a sharp decline from the 5.5% expansion the sector enjoyed in 2024. While tourism remains an essential part of Spain’s economy, the sector’s growth rate is no longer outpacing the overall economic recovery.

The group now anticipates that tourism will account for 13.1% of Spain’s gross domestic product (GDP) this year, slightly below the 13.5% contribution it initially predicted. Though still significant, this reduction reflects a broader trend where tourism is no longer the dominant driver of Spain’s economic performance. The country’s overall economic growth is projected to be around 2.6% in 2025, a rate that will likely match or slightly surpass tourism sector expansion.

A central factor behind the decelerating growth is weaker spending by international visitors. Tourists from key countries like Germany, France, Turkey, and the United States are spending less than they did in previous years, directly affecting businesses that rely on tourism, such as hotels, restaurants, and transport services. Despite a steady flow of tourists, the lower spending per visitor has dampened the sector’s overall performance.

However, the situation is not entirely bleak. Spain continues to attract large numbers of visitors, particularly from the United Kingdom, which represents about 26.5% of the total international tourist arrivals. Additionally, the number of visitors from China and Poland has been on the rise, helping to counterbalance the decline in spending from other markets. While this shift in demographics is positive, it has not been enough to fully mitigate the effects of reduced spending from Spain’s traditional tourism sources.

Initially, the World Travel and Tourism Council (WTTC) projected that Spain would reach 100 million international visitors this year. While this target seemed ambitious, the recent data suggests it might not be achieved. By August 2024, Spain had welcomed 66.8 million visitors, marking a 3.9% year-on-year increase. While growth is still happening, it may not be enough to meet the initial forecast.

Despite this, industry leaders are not overly concerned about falling short of the 100 million mark, as the increasing tourist expenditure helps offset the slowdown in the volume of visitors. In fact, sales in tourism-related businesses such as hotels, airlines, and restaurants grew by 2.8% during the peak summer season, though this was a significant drop from last year’s 6.3% increase during the same period. The slower growth trend is expected to continue into the fourth quarter, with Exceltur forecasting just a 2% increase in sales.

The decline in growth is largely attributed to tourists from Germany, France, Turkey, and the U.S. reducing their spending, while the uptick in visitors from the UK, China, and Poland helped cushion the impact. Despite this, domestic tourism has remained relatively stable, providing some consistency to the overall tourism figures.

This shift in tourist spending habits and the changing origin of visitors suggest that Spain may need to adapt its tourism strategies to stay competitive. The country’s tourism sector has long been a pillar of its economy, but as global travel trends evolve, Spain will need to diversify its tourism offerings and focus on attracting higher-spending visitors. The growing competition from other European and international destinations, along with the changing demands of tourists, presents a challenge for Spain’s tourism industry moving forward.

As the landscape of global tourism continues to evolve, Spain’s reliance on foreign visitors and their spending patterns underscores the need for a strategic overhaul. With competition intensifying from emerging destinations, it will be crucial for Spain to maintain its allure while responding to shifts in visitor expectations and preferences.

A decline in spending from key markets like the US, Germany, France, and Turkey has led to a significant slowdown in Spain’s tourism sector, which is now impacting overall economic growth and reducing its contribution to GDP.

In conclusion, while Spain’s tourism industry remains a key economic contributor, the recent slowdown in growth and changes in visitor spending behavior point to the need for adaptation. The sector’s ability to innovate and attract higher-spending tourists will likely be the key to sustaining its economic importance in the coming years.