Spain's Tourism Growth: Visitors and Revenue 1955-2007

A composite linear graph represents the evolution of the number of visitors (in millions) and tourism receipts (in millions of euros) in Spain between 1955 and 2007.

The evolution of visitors and tourism revenue has experienced an increasing trend over the period, except at specific moments linked to economic crises.

Since the 1960s, Spain has experienced great development, and today, tourism is the second largest in the world by the number of foreign tourists and revenue received.

The "Sun and Beach" Model of the 1960s

The tourist model introduced in the 1960s was "sun and beach." It is characterized by an abundant and cheap tourist, which led to massive demand, with medium to medium-low purchasing power, concentrated in summer and in areas of sun and beaches of the Balearic Islands, the Canary Islands, and the Mediterranean coast. Other features of this model are dependence on international tour operators in marketing and disregard for environmental impact.

Factors that Strengthened the Model

The factors that strengthened this model are both external and internal.

External Factors:

• Economic development in Western and Northern Europe
• Progress in transport (planes became cheaper, improved rail and road, and generalized car use)

Internal Factors:

• Geographical proximity of Spain to European customers
• Excellent natural resources (sun, beach, climate)
• Cultural resources
• Low cost due to the devaluation of the peseta in 1959
• Availability of infrastructure and services to meet demand (resorts, etc.)
• State policy that normalized international relations, built infrastructure, and carried out intensive propaganda promoting Spain as a tourist destination

Tourism Crisis: 1973-1985

Between 1973 and 1985, tourism went through a time of crisis. Although the number of tourists and income continued to grow, they did so at a slower rate due to cyclical factors (global economic crisis motivated by higher oil prices) and others such as:

• Problems of Spanish tourism: prices became more expensive due to inflation and wage increases, with no parallel increase in quality. Also, it did not adapt to new demand requirements, calling for more quality service in infrastructure and the environment.
• The emergence of new competing destinations in surrounding areas (North Africa, Balkans) and in remote areas (Caribbean, Southeast Asia, and Oceania).

Resurgence of Tourism: 1985 Onwards

Since 1985, the rate of tourists and tourism revenue has recovered, except for a brief period in the early 1990s, motivated by the economic recession of those years. The causes of this resurgence were:

• Spain's entry into the EU in 1986
• The growth of domestic tourism
• The beginning of the conversion to a new tourism model based on quality and sustainability

The New Tourism Model

The new tourist model is characterized by a quality tourist offer aimed at a more diverse and less numerous demand, with greater purchasing power and better distributed in time and space due to greater diversification of forms of tourism.

Factors of the New Model:

• Quality of supply based on improving services and infrastructure
• Diversification of supply, which should exploit the variety of natural and cultural resources of Spain to offer alternatives besides sun and sand
• Promotion of tourism by the central government, regional and local, to create an image of Spain as a quality destination
• Sustainability or balance between tourism development and environmental conservation

This conversion is not yet complete, so the dominant model remains sun and sand mass tourism. This fact determines the characteristics, location, and impact of tourism and guides tourism policy to encourage the consolidation of the new model.