Following our quarterly reports on the Spanish and Portuguese hotel markets, in which we have analysed the most relevant areas or cities for the tourism industry, Christie & Co now presents a specific study on the possible impact that the United Kingdom exit from the European Union could have on the hotel industry at the main Spanish holiday destinations.
In October 2016, four months after the UK Referendum which resulted in the Brexit, Christie & Co carried out a survey among the main sector players , hoteliers and tour operators from the Canary Islands, the Balearic Islands and the Costa del Sol., main destination for British tourists.
The results of the survey show a great degree of uncertainty as to how the exit of the United Kingdom from the European Union could affect the hotel sector in Spain in those destinations, considering that, for the moment, Brexit has not had a substantial impact on the behaviour of British tourists in our country, beating demand records in 2016. However, both hoteliers and tour operators consider that negative effects will not impact the Spanish hotel sector until 2018, being a decisive factor how the negotiations between United Kingdom will evolve, together with the evolution of the exchange rate of the Pound against the Euro and its effect on the average expenditure of British tourists visiting Spain.
Inmaculada Ranera, Managing Director for Spain and Portugal, points out: "It is very possible that a depreciation of the Pound and the greater competitiveness of other destinations in the Mediterranean may affect the influx of British tourism to our country, however, the sector seems well disposed to anticipate and increase the promotion to attract new feeder markets, in order to be ready to face a potential decrease of British demand. In any case, what we can see so far is the increase of hotel prices given the growing demand to travel to those destinations”.
Xavier Batlle, the firm’s Senior Consultant for Spain & Portugal, maintains: “The UK market is the first touristic issuing market for Spain, and even if there is still great uncertainty on to how the departure of the United Kingdom from the European Union will affect the sector in Spain. Hoteliers consider that the immediate effect of Brexit could be a reduction in both the average stay as well as the expenditure at the destination.”
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We would like to take this opportunity to inform you that Christie & Co is participating in the International Hotel Investment Forum (IHIF) which is taking place in Berlin, 6th – 8th March. Inmaculada Ranera, Managing Director for Spain and Portugal, and Carlos Nieto, Associate Director, will be attending the event as representatives of the Spanish section of the company.