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Bumper year for tourism as cash flows in

TOURIST industry body

Exceltur says that the sector has ‘totally recovered’ after the Covid pandemic and has predicted a bumper year for revenues.

Exceltur’s Tourism Outlook report says the sector’s GDP reached €159 billion in 2022 - up 1.4% on the previous year and 4.7% on 2018. The report adds that 61% of economic growth in Spain last year was down to tourism.

Exceltur says the first quarter of 2022 was marked by higher energy prices and problems with supplies due to the war in Ukraine, as well as the Omicron Covid variant, but that from April there was a travel recovery,

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especially in the leisure, meetings and congresses sectors.

The body believes that accumulated demand and the desire to travel have overcome the adverse effects on personal income caused by inflation.

Normality

Exceltur expects consolidation of an upward trend throughout 2023, and a return to normality in international mobility, especially that of Asian travellers to Spain, plus the loyal Latin American market. A special focus has been put on Mexican trade, which rose by 80% last year. The report pointed out that a big increase in domestic tourism activity boosted the sector as the foreign visitor market continued to recover.

As for profitability, Exceltur said: “Business results will continue to be impacted by the still high energy and borrowing costs, inflation and increases in salary costs.”