Spain’s Tourism Slows but Maintains Strong Outlook for 2025

Spain, the world’s fourth most popular tourist destination, has long been a favourite choice for travellers exploring its vibrant cities, historic attractions, and rich cultural heritage. However, despite its enduring appeal, 2025 has proven challenging for the country’s tourism industry. As a key player in the international travel market, Spain now predicts a slowdown in tourist numbers during the summer months amid global economic uncertainties, including ongoing trade tensions and negotiations over US tariffs.

Revised Growth Predictions for Summer 2025

Exceltur, Spain’s leading industry group representing the tourism sector, has downgraded its growth estimates for summer 2025. While the country is still expected to welcome a record-breaking number of visitors, growth figures are now expected to slow. Hospitality-related revenues, covering hotels, airlines, restaurants, and other service providers, are forecast to increase by just 2.7 per cent year-on-year in the third quarter, a significant decline from the 6.3 per cent growth seen in the same period in 2024. Similarly, the second quarter of 2025 saw a modest growth of 4.5 per cent, reflecting ongoing economic uncertainties that are influencing consumer spending habits.

A Resilient Recovery Despite Headwinds

Although the growth rate has slowed compared to earlier predictions, Exceltur remains optimistic that Spain will continue to attract a substantial number of international visitors. The modest slowdown is partly attributed to global trade tensions, especially the US trade negotiations, which have impacted exchange rates and international travel patterns.

Changing Travel Trends

One notable shift in 2025 is a decline in visitors from traditional European source markets such as Germany and France. Conversely, Spain continues to see increased arrivals from the United Kingdom, the United States, Japan, and China. However, the growth from these markets is less pronounced than in previous years, largely due to economic challenges that are prompting travellers to reconsider their plans.

Oscar Perlli, Vice President of Exceltur, highlighted these economic pressures, noting that fluctuations in exchange rates have already affected US visits since late 2024. “We are, simultaneously, witnessing a speeding up process of the redistribution of travel to Europe as the preference of the Europeans to stay ‘in Europe’ grows stronger, and Asians seek alternative American targets,” Perlli explained. This trend reflects a broader re-evaluation by consumers of long-haul travel, driven by rising costs and economic uncertainty.

Annual Outlook and Future Prospects

Despite the anticipated slowdown this summer, Exceltur has slightly lowered its annual growth forecast from 4 per cent to 3.3 per cent. While modest, this remains a positive outlook amid prevailing economic challenges, which have caused Spain’s domestic economy to grow at a rate of just 2.4 per cent for the year.

These revised forecasts, though slightly cautious, still underline Spain’s robust recovery and growth potential within its travel sector. Notably, tourism continues to contribute significantly to the country’s economy, accounting for an estimated 13.2 per cent of Spain’s GDP in 2025.

Record Tourist Numbers on the Horizon

The World Travel and Tourism Council (WTTC) forecasts that Spain is set to host a record 100 million visitors this year, underscoring the country’s enduring appeal despite current headwinds. From the beaches of Costa Brava to the architectural marvels of Barcelona and Madrid, Spain remains a magnet for travellers seeking history, culture, and diverse experiences.

Looking Ahead with Confidence

The positive outlook, despite a slowdown in growth, affirms Spain’s position as a premier tourism destination. The country’s rich culture, warm hospitality, and captivating attractions continue to draw millions each year. While the economic outlook may suggest a temporary pause, Spain’s intrinsic appeal and resilience promise a bright future for its tourism industry.

As summer unfolds, Spain’s travel sector adapts to changing global circumstances with skill and flexibility. The nation’s ability to attract international visitors, coupled with its vibrant culture and legendary hospitality, ensures it remains among the world’s most beloved destinations. Although growth may slow in the short term, Spain’s tourism industry is well-positioned to thrive for many years to come.