Hospitality Industry In Spain Market Size (2024 - 2029)

Spain Hospitality Industry Analysis

The Hospitality Industry In Spain Market size is estimated at USD 26.84 billion in 2024, and is expected to reach USD 31.33 billion by 2029, growing at a CAGR of 3.14% during the forecast period (2024-2029).

Spain is the fourth most visited nation in the world. The Spanish tourism sector is expected to continue to play a major role in the country's economic development in the upcoming years. However, due to the macroeconomic uncertainty, high price pressure in the tourism industry, and a decrease in long-distance tourism, it might take some time for international tourism to return to the pre-pandemic levels.

The hospitality sector is booming due to the growing establishments of new hotels in the country. The number of luxury and high-end hotels has grown significantly in recent years. Last year, the Spanish tourism industry saw a 130% increase in international visitors as travelers returned to the country after two years of strict travel restrictions. Despite a decrease in disposable income in many European countries during the past year, shoppers continued to splurge on travel.

Returning to business travel in Spain after the pandemic, international business travel increased by 48% in the first three months of the current year compared with the same period in the previous year. Since the start of the year, business travel has been steadily picking up. The Spanish economy, which has bounced back strongly from the effects of the energy crisis, grew by 0.5 % in the first quarter of the year.

The hospitality industry is expanding rapidly and is registering significant growth. Further, a shift in developments from urban regions to locations that are nearer to islands is observed, representing changing interests in customers' preference for more relaxed experiences in travel and stay. The upper-upscale and luxury categories have registered more growth in recent times.

Spain Hospitality Industry Segmentation

Hospitality is a broad term that encompasses all aspects of the service industry, namely lodging, food and beverage, event planning, theme parks, travel agencies, tourism, hotels, restaurants, and bars. The hospitality industry in Spain is segmented by type and by segment. By type, the market is segmented into chain hotels and independent hotels. By segment, the market is bifurcated into service apartments, budget and economy hotels, mid- and upper-mid-scale hotels, and luxury hotels. The report offers market size and forecasts for the hospitality industry in Spain in terms of value (USD) for all the above segments.