A weak greenback is simply one of many the explanation why fewer American holidaymakers are coming to Spain, one thing that might hit the nation’s tourism business, in accordance with a brand new report.
American tourism in Spain is slowing down after a powerful post-pandemic interval, inflicting specialists to fret that the shortfall might negatively impression the Spanish financial system in 2025.
Based on a latest tourism sector report by CaixaBank Analysis, titled Uncertainty and American Tourism, it’s estimated that the downturn might hit Spain’s tourism GDP development by as a lot as much as one share level this yr.
In a context through which the journey business is slowing general, going from 6 p.c in 2024 to 2.7 p.c, in 2025, the slowdown within the American market stands out as a “related” issue to bear in mind by way of the Spanish market, in accordance with the financial institution’s findings.
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The report factors to a number of potential explanations, together with a weaker greenback and international financial instability attributable to President Donald Trump’s commerce coverage as potential causes inflicting Individuals to remain dwelling.
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“The appreciation of the euro towards the greenback, the slowdown of the U.S. financial system, and a rise in political and financial uncertainty seem like behind this modification in pattern,” the report states, pointing to November 2024, when Donald Trump returned to the White Home for a second time period, as a turning level within the longer-term developments.
Nonetheless, it ought to be famous that the ‘slowdown’ refers to tourism development amongst Individuals going from exceptionally quick to slower however nonetheless rising general.
“Passenger arrivals from the US slowed abruptly, going from 17.5 p.c year-on-year development within the first 10 months of 2024 to simply 2.3 p.c between November 2024 and Might 2025,” the report says.
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American vacationers in Spain spend effectively above common for overseas vacationers within the nation. Final yr, they accounted for 4 p.c of the practically 94 million overseas vacationers however 7.1 p.c of general spending.
In cities resembling Barcelona, they already symbolize a big group of overseas travellers, though their prominence has been rising throughout the nation lately: since 2019, arrivals of Individuals travellers elevated by 28.3 p.c, in comparison with 12.3 p.c of whole worldwide arrivals.
Nonetheless, CaixaBank factors out that spending with US financial institution playing cards in Spain has gone from rising by 17 p.c year-on-year between January and October 2024 to falling by 2.2 p.c between November of that yr and Might 2025.
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In distinction, whole spending with overseas playing cards slowed extra reasonably, with a rise of 11.1 p.c between January and October 2024 to eight.5 p.c between November and Might.
The analysis additionally identifies the areas of Spain most affected by a drop in American guests, pointing to an city choice amongst vacationers coming from the States: “If we breakdown Spanish municipalities into city (greater than 30,000 inhabitants) and rural, and between coastal and non-coastal, we observe that the affect of American tourism is especially important in non-coastal city municipalities (14.7 p.c), round Barcelona and Madrid, in accordance with the newest evaluation by Turespaña. In rural municipalities, each coastal and non-coastal, the affect of American tourism is barely above 4 p.c.”
However, David César Heymann, economist at CaixaBank Analysis and writer of the report, factors out that the variety of American travellers to Spain grew far more in 2024 than in Europe as a complete (22.3 p.c in comparison with 7.3 p.c), which is why the slowdown is now extra pronounced.
From January to April this yr, Spain acquired 25.6 million worldwide vacationers, 7.1 p.c greater than in the identical interval in 2024. 12 months-on-year development at the moment was a lot greater, at round 18 p.c.
Common spending per vacationer, an indicator used to measure the worth of holiday makers, has barely elevated by 2 p.c within the first 4 months of the yr, effectively beneath the 7.1 p.c enhance skilled final yr.
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