Spain's Service Economy and Tourism Development

The Tertiary Sector in Spain: Evolution and Impact

The tertiary sector encompasses activities designed to provide services to society. It is, therefore, a heterogeneous sector that includes activities not classified as primary or secondary. This "service economy" significantly contributes to the Spanish economy, as evidenced by its share of GDP and the workforce employed in this sector (64.5% in 2004).

Factors Driving the Growth of the Tertiary Sector

• Increased Standard of Living: A higher standard of living allows for greater consumption of services and demands that are becoming more numerous and specialized.
• Industrial Transformation: Industry has promoted the process of tertiarization. The industrial development of the 1960s boosted the growth of services such as transport and finance. The crisis of 1975 saw the tertiary sector become a refuge for many unemployed from industrial activity. Furthermore, modern industry, which increasingly uses new technologies, requires less labor but demands many services, stimulating the so-called tertiary sector of industry.
• Tourism Boom: The tourism boom has significantly contributed to the growth of services such as catering, trade, transport, banking, and leisure-related activities.
• Expansion of Public Services: The increase in public services, driven by the creation of regional and European administrations and the implementation of the welfare state, has stimulated the growth of services like healthcare and education.
• Women's Workforce Participation: The increasing incorporation of women into the workforce has primarily occurred in this sector and has led to the development of certain services, such as childcare.

Development of Spanish Tourism

Since the 1960s, Spain has experienced significant development in its tourism sub-sector. Today, it stands as one of the world's leading tourist powers, both in terms of foreign tourist volume and revenue generated from this activity.

Factors Behind the Spanish Tourism Boom in the 1960s

The Spanish tourism boom in the 1960s was motivated by both external and internal factors.

External Factors:

• Economic Growth in Europe: Economic growth in Western and Northern Europe after the Second World War led to an increase in the purchasing power of the middle class. This enhanced their consumption capacity and allowed them to travel further to spend their leisure time. This trend also benefited from the entry into force of paid leave laws for the working classes.
• Advances in Transportation: Progress in transportation facilitated travel by reducing the price of air travel, improving road and rail networks, and popularizing car use.

Internal Factors:

• Geographical Proximity: Spain's geographical proximity to European customers.
• Climate and Landscape: Excellent climate and landscape conditions, along with high-quality beaches.
• Cultural Attractions: Attractive cultural monuments, traditions, folklore, and gastronomy.
• Low Cost: The low cost of travel, due to a favorable exchange rate for foreign tourists following the devaluation of the peseta in 1959.
• State Support: State initiatives for this activity, as from the early 1960s, tourism was seen as a means to finance industrialization and balance the trade deficit.
• Emergence of Large Hotels and Travel Agencies: The development of extensive hotel infrastructure and the proliferation of travel agencies.