Panic in Spain as tourists abandon holiday spots after protests in Majorca and Tenerife

Anti-tourism demonstration in Majorca (Image: Getty)

Spain's tourism industry is facing  challenges following massive anti-tourism protests that took place across the country this summer. Exceltur, an industry group, reported on Tuesday that growth in Spain's tourism sector has slowed, warning that the industry's contribution to the country's economic expansion this year will fall short of expectations.

The decline - largely due to reduced spending by visitors from Europe and the US - is being partly attributed to recent demonstrations, which many believe have deterred potential travellers. Exceltur now forecasts that tourism-related activity in Spain - the world's second most-visited country - will grow by 2.8% in 2025, down from the 3.3% growth it projected in July and well below last year's 5.5% expansion. According to Reuters, the group also expects the tourism sector to account for 13.1% of Spain's gross domestic product this year, lower than its earlier estimate of 13.5%.

Spain's tourist industry growth has slowed down significantly according to sector group Exceltur (Image: Getty)

Last year, Spain registered a record 94 million tourists. By August this year, 66.8 million tourists had arrived, up 3.9% from the same period a year ago, according to figures reported by Reuters. However, the it further reported that the number of international tourists may fall short of the 100 million projected by the World Travel and Tourism Council earlier this year.

"I don't know if we will reach" the 100 million tourists, Spanish Tourism Minister Jordi Hereu said, adding though that he did not consider that as a cause for concern since tourist spending was still rising.

According to local media, the situation has become so severe that some managers have resorted to giving staff time off in mid-July - typically the peak of the summer season.

"Tourism is no longer the main dynamiser of the Spanish economy," Exceltur Vice President Oscar Perelli told a news conference, adding that the sector will no longer far exceed Spain's expected economic growth of 2.6%.

Sales across hotels, airlines, restaurants, and other tourism-related businesses grew by 2.8% during the peak summer season, a sharp decline from the 6.3% increase recorded during the same period last year. Exceltur forecasts a 2% rise in sales for the fourth quarter.

The slowdown is attributed to weaker spending by tourists from Germany, France, Turkey, and the United States, according to Exceltur. However, a rise in visitors from Britain - which makes up 26.5% of total arrivals - as well as from China and Poland, helped offset the decline during the high season, while domestic tourist numbers remained stable.