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Tourists in Malaga city. Salvador Salas
Costa del Sol hotel price rises start to hit national tourism

Costa del Sol hotel price rises start to hit national tourism

However, international travellers have compensated for the fall in this market, so that overnight stays, average stay, and occupation all remain healthy

Pilar Martínez

Malaga

Thursday, 29 June 2023, 07:34

Professionals in the travel sector had been warning that since mid-May hotel reservations had stagnated and the rate of demand suffered, especially from Spanish tourism market. Now the data confirms this. Among the disparate factors analysed that could be causing this slowdown, some experts pointed to the continuous rise in prices.

The latest report from the Turismo Costa del Sol tourism board, based on data from the Spain's INE national statistics institute, noted that last month saw the first drop in national tourism since the start of the recovery after the coronavirus pandemic. This coincides with an average increase in the prices of hotel rooms in May of 33% compared to the same period in 2019. The rise in rates is ten per cent above the national and Andalusian average.

The average cost of a hotel night in May in Malaga province was 120 euros, compared to 90 euros before the pandemic. The sector says the increase is necessary due to the high cost of energy and the sharp rise in inflation.

Worringly, the report also reveals that the volume of Spanish tourists staying in hotels dropped by 2.4% last month. However, international travellers have compensated for these falls, so that overnight stays, average stay, and occupation (which stands at 66%) all remain healthy. At hotels on the Costa del Sol last month eight out of ten guests were foreigners.

Turismo Costa del Sol highlighted that by market volume, national travellers continue to lead the ranking, followed by the British.

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