Records-Breaking Tourist Spending in Spain
Visitors to Spain parted with more money than ever before during May in a record-breaking month that saw revenues climb 11.8%, raking-in €5.89m.
The Tourist Expenditure Survey ( EGATUR ) published stats showing the total spending by inbound tourists in Spain for the first five months of 2015 was the highest since records began at almost €22bn, representing growth of 8.4% on the same period last year.
Spending growth comes on the back of a 6.9% increase in visitor numbers during May, paying an average €905 per person on accommodation and spending around €114 each day. The report shows that the average stay increased slightly to 7.9 nights.
A welcome break for Spain
The figures come as a welcome break for Spain after reporting a current account deficit of €232bn earlier this week. Tourism contributes more than 10% to the Spanish economy and its revival has already positively impacted labour markets in the slowly recovering country.
British tourists dished out the lion’s share of cash in Spain during the first five months, spending a whopping €4.22bn over the period, representing around 20% of the total tourist spend. French tourists followed close behind increasing their spending by 16.5% to €2.22bn.
Andalusia, the region that is home to the Costa del Sol recorded a spending increase of 10.3% with tourist spending rising to €3.44bn from January to May this year, representing 15.8% of the total inbound visitor revenue. During May a total of €975m was spent in this region which at 16.9% was the largest regional increase in the month, accounting for 16.6% of the total.
Spain had a bumper 2014 in its tourist markets which stimulated investment in Spanish real estate , notably in regions popular with holidaymakers. The strong pound and excruciating weakness of the euro has combined to incentivise buyers looking to achieve revenue for holiday lets in one of the world’s favourite destinations.
However, price growth in Spain is likely to be subdued in the next few years due to the excess of empty and unfinished housing projects littering the country and large bank-held inventories of repossessed homes waiting to be off-loaded.
Article by +Roxanne James on behalf of Propertyshowrooms.com
US Senate Propose 62.5% Increase in ‘Golden Visa’ Investment Requirement
Considering dollar strength at the time of writing, it’s hard to fathom quite why the US EB-5 Immigrant Investor programme could potentially become a lot more expensive. The Senate has put forward fresh proposals to increase the minimum investment b…
Portugal Property Reaches Bottom of Market
Many industry insiders believe that property prices in Portugal’s Algarve region have bottomed-out, meaning the only way is up for the perennially popular destination for British holiday home buyers.
With homes discounted by up to 40% on pre-crisis prices, property in the Algarve has reached a level that represents attractive value to savvy investors.
It’s a good time to buy
Mike Braunholtz, director of luxury realtors Prestige Property Group said: ” I’ve been an overseas property agent for 20 years and I’ve never invested in an overseas property. I’ve chosen Portugal this year because I think the time is right. I don’t see the market going below where it is now and it’s definitely beginning to go up again, so it’s a good time to buy. “
The Portuguese government has been actively investing in its tourism sector since 2006 when the ambitious National Strategic Plan for Tourism (PENT) was introduced. Tourism directly contributed €10.4bn to Portugal’s economy in 2014 and is set to increase 3.1% to contribute €10.7bn in 2015.
As a result of PENT, tourism is currently booming in Portugal, with revenues rising, unemployment decreasing and the outlook for the country’s real estate improving on the back of it.
Property at the luxury end has been buoyant for the last two years, something that is mirrored in prime real estate markets throughout the world. However, recovery has taken longer in the mainstream residential sector particularly in the Algarve, with the green shoots just beginning to appear.
Portugal showed modest house price rises during the year to Q1 2015, increasing by just 1.53% over the period, albeit a better performance than the previous year. However, despite its lacklustre performance in recent years, Portugal is very well-placed to return to growth over the short term future largely due to its commitment to expanding tourism.
Pre-crisis, the Algarve region was particularly popular with British holiday home buyers, who drove demand to such a degree that property prices inflated to the point where value opportunities became few and far between.
In 2015, it would appear that the Portuguese property market has moved back into positive price growth territory which, supported by increased investment in tourism is likely to throw out some great opportunities for savvy property buyers in Portugal.
Article by +Roxanne James on behalf of Propertyshowrooms.com
Business Partners
