Will the war in Ukraine affect Spanish tourism?

Over the last 2 years we have had to face situations we could never have imagined, even in our worst nightmares. A global pandemic, ecological disasters and, most recently, Russia's invasion of Ukraine, which as well as being a humanitarian crisis of enormous proportions will lead to an economic crisis in Europe and around the world.

Inflation driven by rising fossil fuel and gas prices puts us in a new scenario that any sector, such as tourism and/or hospitality, may feel.

Fewer Russian tourists and last-minute cancellations

Spain is a country that offers what tourists come looking for:

• Sun and good weather
  • Our kilometres of beaches and endless hours of sunshine and warmth are an almost unbeatable attraction in Europe and even worldwide, something tourists from central and eastern Europe greatly value, as their climates are much harsher than ours
• Attractive prices
  • Tour operators offer competitive prices combined with activities that put us at the top of summer entertainment.
• Health safety
  • The hotel equipment that hotel chains invested in to tackle the COVID-19 health crisis is one of the strong points when choosing our country. Investments such as:
    • Electronic locks
    • Opening doors with a smartphone
    • Booking management and door opening systems controlled from reception (with no guest interaction)
    • Enhanced cleaning of rooms and common areas
    • Etc...
  • We also have a strong healthcare system and less restrictive measures adopted by our government to attract tourists

However, the war in Ukraine has led to a drop in Russian tourists (a trend that was starting to grow slowly) and trip cancellations, especially from tourists from across the Atlantic, who fear the consequences the war could have for a country like ours.

Fortunately, new bookings outnumber cancellations and the balance remains positive for now, something urgently needed by a sector that has already suffered losses of close to €70,000 million compared with 2019.

Rising crude oil prices and tourist sentiment

According to IATA, the price of jet fuel has risen by 27.5% and is already 96.2% more expensive than a year ago. In other words, flying, travelling by car, by boat and even by train will cost more, which may penalise long-distance travel.

With much higher prices, "everything" will cost more, so consumers will have less spending power , offset only by the savings built up during the more than 90 days we spent confined at home.

On top of the economic impact comes the "psychological effect" of the war. Bad news affects tourist demand, especially in distant markets such as the United States. In cities like Barcelona, a slowdown in bookings from the US has already been detected, with travellers opting for closer destinations such as the Caribbean.

Brand Spain, a safe bet

Spain is an attractive destination for the European market, which accounts for almost 80% of tourism revenue, excluding Russia.

European travellers are trying to stay away from the conflict, and destinations like Spain are undoubtedly a good choice. In addition, air fares from the UK, France, Benelux and Germany to mainland Spain and the Balearic Islands will be lower than to other destinations, which also influences EU travellers' choices.