Brexit will have Impact on Spain's Hotel Market
In the course of their recent report, Christie & Co interviewed sector experts in Spain's key holiday destinations on the possible impact of Brexit. Effects may be felt from 2018.
Following the release of their quarterly reports on the Spanish and Portuguese hotel markets, leading specialist hotel advisor Christie & Co recently presented their report Summer after Brexit: Holiday Destinations in Spain. The study analyses the possible impact of the United Kingdom’s exit from the European Union on Spain’s hotel industry, specifically in the main Spanish holiday destinations.
In October 2016, four months after the UK Referendum which resulted in the Brexit decision, Christie & Co carried out a survey among the main sector players, hoteliers and tour operators from the Canary Islands, the Balearic Islands and the Costa del Sol – main destination for British tourists.
The results of the survey show a great deal of uncertainty remains as to how Brexit could affect the hotel sector in Spain considering that, for the moment, Brexit has not had a substantial impact on the behaviour of British tourists in the Spanish market, beating demand records in 2016. However, both hoteliers and tour operators expect that negative effects will not impact the Spanish hotel sector until 2018, as a decisive factor will be how the negotiations between United Kingdom and European Union evolve, together with falling exchange rate of the Pound against the Euro and its effect on the average expenditure of British tourists visiting Spain.
Inmaculada Ranera, Managing Director for Spain and Portugal at Christie & Co, comments: "It is very possible that the depreciation of the Pound and the greater competitiveness of other destinations in the Mediterranean may affect the influx of British tourism to our country, however, the sector seems well disposed to anticipate and increase promotion to attract new feeder markets, in order to be ready to face a potential decrease of British demand. In any case, what we can see so far is the increase of hotel prices given the growing demand to travel to those destinations.”
Xavier Batlle, the firm’s Senior Consultant for Spain & Portugal, continues: “The UK market is the premier feeder market for Spain, and even if there is still great uncertainty on to how the departure of the United Kingdom from the European Union will affect the sector in Spain hoteliers consider the immediate effect of Brexit could result in a reduction of both the average stay as well as the expenditure at the destination.”