Ever since the 1960s and 1970s, Spain has been a popular summer holiday destination for tourists travelling from the UK, Ireland, France, Germany and Italy, amongst many other countries. Spain also boasts a long-held reputation as being a great budget holiday destination, ideal for visitors hoping to stretch their pound a little further.
But whilst the popularity of holidays in Spain hasn’t waned, it isn’t as cheap a destination as it once was. So how much more will holidays in Spain cost visitors in 2023? Here’s everything you need to know:
Is Spain Still the Cheapest Destination in Western Europe?
Research conducted by financial website MoneyTransfers.com has confirmed that Spain remains the most popular destination for Britons travelling overseas: a position it has held since 2019.
However, whilst its popularity hasn’t decreased, the prices of travel to the country have certainly increased. One of the main reasons for this is inflation. Much of Europe has experienced high levels of inflation over the last 12 months, and this isn’t a problem unique to Spain.
According to the latest research released by the Spanish National Statistics Institute (INE, prices in Spain are 3.2% higher now than they were in May 2022. This does mean that inflation is slowing, as in April the inflation rate sat at 4.1%, meaning that prices are continuing to rise but at a slower rate than before.
As a result, a Post Office study has now found that Portugal is the cheapest country for tourists in Western Europe.
These figures clearly demonstrate that holidaymakers in Spain can expect to pay more for their trip in 2023 than they did in 2022. But in real terms, how much more can they expect to spend?
Costs have risen considerably. Here they are broken down into the key expenses that most tourists will pay during the course of their Spanish break:
Unless you are lucky enough to own your own Spanish holiday home or have friends or family members to stay with in Spain for free, you’re going to need accommodation for your Spanish break. And this is likely to be your biggest expensive, with the price of hotels rising more than any other expense in Spain right now.
Hotel and other tourist accommodation prices have been increasing steadily since covid, and we now see a 44% increase in total. Research has found that rooms that cost 60 euros in 2020 will now cost visitors 86 euros. INE data released at the end of April 2023 shows that the average cost of a hotel room in Spain is currently €99.32 per night. In April 2022 that figure stood at €89.05 and in 2019, prior to the pandemic, it was €80.92.
It stands to reason that the more stars your chosen hotel has, the more you can expect to pay for your room. But luxury in Spain will cost you even more. Five-star hotels in Spain have increased their rates by 14% year-on-year, four-star hotels have increased their rates by 9% year-on-year and three-star hotels have increased their rates by 13% year-on-year. It is significant that the greatest increase is in the best class of hotels, and targeted to those customers that can arguably most afford the jump.
All-inclusive hotels in Spain have widely been considered to be the best value, and the huge increase in the cost of eating out in Spain means that this continues to be the case. INE stats reveal that restaurants are 13.2 more expensive than before the pandemic.
This is understandable given the huge increase in food prices both in Spain and in wider Europe. Those increased food prices are simply being passed on to consumers.
Food prices haven’t stopped rising in Spain since the start of the Pandemic, and the rising food prices have not been helped by the knock-on impact of the war in Ukraine. Since February 2020, food prices in Spain have increased by a whopping 27.2%.
Food and Drink
If you thought booking an Airbnb and then self-catering your Spanish holiday this summer might be a most cost-effective approach, then you’re likely to be disappointed. Whilst this is still a cheaper way to travel, food in the supermarkets in Spain have increased significantly in price. Compared to May 2022, supermarket prices in Spain are 12% higher.
Some items are more expensive than others. Items that are significantly higher and commonly purchased by self-catering tourists include milk, which is 24.3% more expensive than a year ago, olive oil which is 24.7% more expensive and potatoes which are 23.6% more expensive.
If you enjoy a beer or a glass of Spanish wine with your meal whilst you’re in Spain then you should know that the price of alcoholic beverages has increased by 12.2% over the last 12 months.
Are you thinking of moving to Spain? Or looking for a holiday home that you can let when you’re not using it? Then why not get in touch with our locally based property experts, who are perfectly placed to help make you dream of Spanish home ownership a reality. We’re already excited to work with you !