MADRID (AP) – Spain has welcomed up to 100 million tourists this year. Recent forecasts indicate that the economy minister has noted rising challenges for residents, who can no longer overlook these issues.
In the previous year, Spain recorded 94 million international visitors, securing its position as one of the most frequented destinations globally.
“It’s crucial to recognize that these tourist records also present challenges,” said Economy Minister Carlos Querpo in a Tuesday interview with the Associated Press. “We must tackle these challenges alongside our own population.”
Tourism is predicted to expand more rapidly than last year’s major developed economies, with an anticipated growth of 2.4% this year, surpassing the expected eurozone average of 0.9%, according to the Bank of Spain.
Nevertheless, the ongoing housing crisis, which has seen both household and rental prices surge in cities like Madrid and Barcelona, has sparked growing frustration, specifically regarding facets linked to tourism.
The country experienced major protests that brought together tens of thousands advocating for increased government intervention in housing. Demonstration signs, featuring slogans like “Turn Airbnb out of our neighborhood,” highlight escalating discontent.
In response, the government recently announced crackdowns on Airbnb, stating that it had been operating illegally within the country and labeling the company as problematic.
“As a nation of 49 million people,” Querpo remarked, “the record number of tourists not only highlights our country’s appeal but also underscores the challenges of managing and providing quality experiences for tourists while simultaneously preventing overcharges to our own services and homes.”
The Bank of Spain recently reported a shortfall of 450,000 homes. Cuerpo emphasized that increasing public housing is vital for addressing this issue, noting that Spain has fewer public housing units than many other significant EU nations.
“This is a pivotal issue for this term,” the minister stated regarding the country’s housing difficulties.
As for the potential of US tariffs on EU goods, the leading economic policymaker in the eurozone’s fourth largest economy remarked that the EU wishes to enhance its economic relations with the USA.
“From the EU’s perspective, we aim to be constructive, yet we are not naive,” Cuerpo added.
The 90-day suspension of tariffs announced by the EU and the US is set to expire on July 14th. Midway through this period, US President Donald Trump declared a 50% tariff on steel imports. The US also implemented a 25% tariff on vehicles and levied mutual tariffs on most other goods.
Regarding the roots of Spain’s current housing crisis, the minister noted that a significant decline in construction following the 2008 financial crisis contributed to the situation. This decline coincided with population growth driven by immigration, said Cuerpo, along with pressures from a rise in tourist numbers.
While the construction of more homes is essential, the Minister advocated for a multifaceted approach, including the regulation of the Spanish housing market and short-term rental platforms.
“We don’t have a one-size-fits-all solution,” he stated.
Source: apnews.com