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Customers are paying more in bars and restaurants than before the pandemic. Migue Fernández
Dearest prices ever on the Costa fail to slow down record demand from tourists

Dearest prices ever on the Costa fail to slow down record demand from tourists

Owners of hotels and tourism businesses in Malaga province say that more people are coming and spending more than ever this Easter

Pilar Martínez

Thursday, 6 April 2023, 10:50

Tourists are as keen as ever to visit this coastline at Easter for its beaches, the break from routine, the solemn, emotive processions for Holy Week and top-notch food and drink. This is despite the record highs in prices advertised by hotels, restaurants, beach bars, airlines and travel agencies alike.

The Costa del Sol is showing its tourist muscle once more with rising demand leading to 85% occupancy in hotels and 90% in campsites and holiday rentals, making it difficult even to reserve a table for a meal out.

Add to this the fact that the number of seats on sale on flights to Malaga Airport have exceeded pre-pandemic levels this week, despite airline tickets being up to 20% more expensive.

President of the association of travel agencies for the Costa del Sol, Sergio García, said, “This is the first Holy Week with absolute normality for flying without any kind of travel restrictions to the most far-flung countries. And it shows.”

The regional minister for Tourism, Arturo Bernal, had no doubts whatsoever last weekend that this will be “the best Holy Week in history”.

Hotel bookings

José Luque, president of the Costa del Sol hoteliers’ association Aehcos, confirmed the average rate increase is 10-15% for all tourist venues compared to 2019 prices. Spanish tourists are booking well in advance whereas foreign visitors are booking more last-minute, paying a higher price.

“Bookings have not been negatively impacted by the price rise,” he stated, noting also the pressures of inflation on businesses that cannot swallow all price increases. Luque pointed out that the Costa del Sol is now attracting higher-spending visitors - in March the amount spent per visitor increased by 12%.

A quick search on Booking.com for a three-day break in Malaga city from Maundy Thursday showed only 6% availability last weekend - a key indicator of the level of demand for that destination, despite the higher prices.

Pedro Echevarría, manager of five-star hotel Only You in Malaga had rooms costing 15-20% more, with the average price for all Easter week rising to 300 euros per night. “Until Maundy Thursday we have 80% occupancy, with Easter weekend full. Of our six rooms with a terrace facing the processions now at 1,000 euros a night, four are already taken. We’re really happy. Best year yet.”

On the coast, Marbella boasts the highest occupancy rate, with average prices beating Malaga’s increases such as up to 2,000 euros for two nights at the Boho Club on The Golden Mile.

Founder and president of Soho Boutique Hotels Gonzalo Armenteros was confident that the no vacancies sign will light up along the coast this Easter weekend. Likewise, Mari Francis Peñarroya, general manager of Holiday World in Benalmádena, stressed that “the forecast figures are unbeatable”.

“Prices are 12 to 15% higher now. We expect summer rates to rise by 20% due to the inflationary pressures on a hotel like this especially for energy and catering. Best of all, the market is tolerating these increases,” she said.

Bars and restaurants

In restaurants they are pulling out all the stops to meet the high demand from customers willing to pay around 10% more than before the pandemic. “Even so, turnover will be 4% above 2019, although inflation will keep profit levels lower,” said the head of Mahos hospitality association, Javier Frutos, confident that “it will be a good Easter week”.

With the beaches packed and promenades bustling as if summer season had started, it is increasingly difficult to secure a table in the beach bars. President of the beach businesses association, Manuel Villafaina, was clear that the increased spending power of visitors means “it is this type of customer that we have to retain”.

Some eateries have also noted more trade from tourists in holiday rentals choosing to eat out more often.

Holiday rentals

President of the AVVA Pro tourist rental association, Carlos Pérez-Lanzac, confirmed that rental prices are in line with those of 2019, a record year. “Occupancy rate for Holy Week is 10% up on last year.”

If the weather is on our side, we will have the region’s main cities close to 90% occupancy, (full for Easter weekend and 70% for the rest of Easter). From Monday to Wednesday in a normal week it hardly reaches an average of 30% occupancy in Andalucía,” he explained.

Inland

Away from the coast, demand is more uneven. Many trade associations confirmed reservations are more last-minute with most places still showing availability. A report from Malaga-based platform Ruralidays.com showed bookings for rural properties at 60.5% overall for Holy Week and only increasing to 67.5% for Easter weekend.

Campsites remain popular and still on the rise. The forecasters anticipated 90% occupancy of static accommodation alongside 70% of spaces already booked for tents or caravans.

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