BRAINTRUST, a leading consulting and professional services firm in the tourism sector, has released a new industry analysis, this time focusing on foreign tourist spending on travel, thanks to a new wave of its Tourism Barometer, where it makes its own forecasts.
It states that this year the record for the number of international travelers will be broken again, exceeding the 83 million in 2019 to reach 85 million in 2023, and, more importantly, spending would reach nearly €100 billion, attracting a type of foreign tourist with greater purchasing power, reaching approximately 12% above pre-pandemic levels.
Fewer foreign tourists in 2022, although they have spent more
BRAINTRUST takes an in-depth look at foreign travel spending, analyzing changes compared to the pre-COVID period, given that 2022 can be considered the year of recovery.
In this context, the number of foreign tourists has reached 71 million, still 14.3% below 2019 levels, mainly due to the absence of certain nationalities whose travel restrictions were lifted later, such as Asian and American countries, and the absence of travelers from markets close to the conflict in Ukraine, who are expected to return in 2023.
However, the data gives cause for optimism, as the average expenditure per traveler has grown by 10.5%, partly due to the fact that stays are slightly longer (by 5.7%), which, combined with rising prices due to inflation, has led to higher overall spending in our country.
Accommodation, the type of expense that increases the most
Analyzing the data separately, BRAINTRUST highlights the clear difference between the different expenditure items, noting the increase in the accommodation category, which is up 13.1% compared to the same period in 2019. In contrast, other categories have fallen sharply, with package tours being the hardest hit with a 19.5% drop, transport suffering a 12.4% fall, while spending on food and leisure activities remains steady, given the wide, rich, varied, and experiential offer that our country has to offer, which is increasingly attracting foreign tourists.
Hotel accommodation rises compared to non-hotel accommodation
The work carried out so far gives us a clue that we are heading in the right direction, attracting tourists who spend more at their destination, as demonstrated by the fact that they have extended their average stay and have also opted more for hotel accommodation than non-hotel accommodation compared to pre-pandemic years.
This is highlighted by data from the consulting firm, which shows that the former has grown to 68.6% from 65.8%, clearly recognizing the efforts of tourism agencies in Spain, as well as the strategies of companies, in pursuit of what has come to be known as "higher quality tourists."
According toJosé Manuel Brell, Partner in charge of Quantitative Studies and Models, and the Tourism and Leisure Industry at BRAINTRUST: "The data invites optimism and reflects the good work of those responsible for tourism at both the public and private levels, although this should not be an excuse to forget the necessary transformation of the industry and adapt it to new times, new travelers, and new habits and behaviors.
This requires constant analysis of data, evaluating the extent to which plans are being fulfilled, not only in terms of quantity but also quality, adapting strategies in a timely manner so as not to die of success, and laying the foundations for a new form of tourism for the future.
At BRAINTRUST, we always say that a simple piece of data can hide a deeper and more meaningful analysis that is worth looking into. Rather than jumping to conclusions, we should approach it with a business mindset and contextualize it within a valuable analytical model that fully justifies the numbers.
A new record for foreign tourists would be set in 2023, reaching 85 million, while total spending would approach €100 billion.
With all this data in hand and its new wave of the Tourism Barometer, BRAINTRUST predicts that, given the current situation and with no significant potential risks in sight, 2023 could be another record year both in terms of tourist numbers, reaching almost 85 million, and total spending, reaching 100 billion, provided that no new black swans appear and that the economy maintains its forecasts in terms of both growth and inflation moderation in the main tourist source markets for Spain.
For Angel García Butragueño, Co-Director of the Tourism Barometer and Director of Tourism at BRAINTRUST: "The real challenge lies in continuing the recovery while taking advantage of the opportunity to design a more sustainable form of tourism with a greater positive impact on destinations and local societies. Despite the current economic situation, travel has become a priority for people, ahead of other previously priority expenses, and after the pandemic we will see significant growth never before imagined."
"However, at BRAINTRUST,"Butragueño continues, "we call on all industry leaders to bring about a change in our model, so that we can take advantage of our tourism capital, while redesigning a prototype that is clearly outdated, based on quantity rather than quality.
Giving in to euphoria and missing out on the opportunity for restructuring would be fatal for our industry and for our country. This requires leaders with a renewed and innovative vision who can lead the sector not only in the short term, but also in the medium and long term, positioning tourism as one of the fundamental pillars of our economy, not only at the national level, but also at the regional and local levels.
It is time to lay the foundations for future decades, where traveling is synonymous with respecting the environment, heritage, culture, and customs, involving indigenous societies in its construction, transition, and management.
