It was a record year for the tourism in Spain in 2013 as 60 million foreigners visited the country and spent 55 billion euros. But residents were not traveling much until domestic tourism spiked 1% in August.
The good thing is that this trend continued through October and by the end of December domestic tourism had grown 6.6% on the year. Despite the boost, domestic tourism was still negative for the year, down 0.2%. Forecasts suggest that the trend will continue in 2014 provided that economic growth finally arrives. Unemployment, wage cuts and weak spending have kept Spanish consumers at home. Companies have also cut back on business trips in an effort save money.
Domestic tourism data are a good barometer for trend changes in employment and spending. The improvements are already visible in hotel prices, which are starting to rise after months of continuous price reductions. It goes without saying that tourism will be a main job creator this year. Labor reforms have helped this sector of the economy, because businesses will be able to make more flexible hiring decisions.
