Tourism in Spain.

University Degree Business and Administrative studies

HG 253

TOURISM IN SPAIN.

(As a main host country).

RUWANTHI PERERA.

Introduction.

Spain is a land of geographic and cultural diversity, and with a lot to offer. The Mediterranean beaches of the south and the northwest attract those sun lovers, but more and more tourists are discovering the fascinations of an old and beautiful Spain far from the beaches. There are an enormous variety of landscapes in Spain: forests, salt marshes, rocky bays, mountains, medieval cities, rivers and mountain ranges. (www.spaintour.com)

Through out this essay I will be looking at the following themes respectively.

P.S: Because Spain is a huge country which has lot of remote islands I will not be looking at tourism statistics specifically regarding these islands however, I will be referring to them on the following themes as ‘examples’ to illustrate certain points.

An overview of tourism in Spain in context of tourism in the Mediterranean and rest of the world.
Historical background of inbound tourism in Spain.

Franco era.
Development of Mass tourism and their motivations.
Coastal tourism.
Tourism statistics until 2000.

Reformation of tourism in Spain.

Reasons why and how?
Past approaches.
Current approaches.

Conclusion.

Nature/ quality of tourism during past few years, as a host country.
Future plans to improve their tourism.

According to world tourism organisation (WTO website) it was estimated 219.6 million international tourist arrivals (excluding domestic) in 1999 and 84% of the tourists were from Europe, mostly northern and western countries and Almost 80% of the Mediterranean tourists were received by Spain, France, Italy, and Greece.

Ccording to table 1 on appendix, extracted from the (WTO website) shows the numbers of passenger arrivals to countries on the medittreranian during 1999 and the growth percentages between 1998-99.according to table it is clear that Islraels seems to have increased the tourist arrival numbers out of most Mediterranean countires while spain Syrian Cyprus and Greece seems to have a similar steady groth perecentage ranging from 9.2-9.9%.

According to Gonzales (1996) tourism is very important to Spanish economy as In 1990 it was estimated, Spain was the fourth country in regards to tourism earning following United States, Italy and France. Also as mentioned on (WTO website), for the last fifteen years Spain has always seems been among the 10 most visited countries in the world.

Although historical sites and unique cultural features had always made Spain attractive to foreign visitors, the tourist boom that began in the mid-1950s. As Gonzales (1996) argues after general franco commited his government to the promtion of tourism as a mjor econimc agenda in order to overcome the problems in their balnce of payment in the country by encouraging private interments and foreign investment tourism has grew very quickly based primarily on the recreational areas of the Mediterranean seashore areas. The country had fewer than 1 million tourists in 1950, but the number rose steadily, reaching more than 34 million in 1973 and 50.5 million in 1987 (see table 2, Appendix).

As Gonzales (1996) explains The most popular resort areas were the Balearic Islands and the Mediterranean coastal areas because of the climate and temperatures of average 12’C –14’C all year around and white sandy beaches which attracted lot of cold European citiy holiday makers . according to (www.refernce.com website),The Balearic Islands generally accounted for about 34 %of the number of nights foreign tourists spent in Spainwhile the Costa Brava and the Costa Dorada, stretching from the French border through Barcelona to Tarragona, accounted for 22 % and the Costa del Sol and Costa de la Luz, extending from Almeria on the southerncoast to Ayamonte on the Atlantic coast at the Portuguese border, accounted for 12%. However, according to the website Although areas on the northern coast facing the Bay of Biscay were accessible to the Europe their attraction was limited by tourists feared over continuing political problems and violence in the Basque region.

Also according to (albert-pinole 1993)another factor which contributed to mass touirsm development in spain was the inotroduction of low priced package holidays. Britain was one of the main tourist income countries. As mentioned on (www.atheneum.com), the spainsh seashores became filled with hotels and flats finaced by foreign investors who offered low package holidays, which inreturn encouraged mass tourists with small disposble income which in return spent less cash as well as not providing enough income for the countire’s balance of payment.(which was not what franco intended to achieve) (refer to graph 1, appendix) according to website This trend has been especially marked in German tourism, as a result of the economic downturn in their country, so that every year they shorten their stay and spend less for their Summer holidays.

However As Deborah Luhrman (1991) identified spain had decided to put their prices up in order to encourage more up market tourists and to eliminate the reputation they have as the land of cheap sangria and beer. According to Luhrman (1991) spain saw this as Over development of beach resorts, noise and bad service were among other reasons what tourists gave for staying in return .

Although Luhrman (1991) argues By the end of 1990 Spain had received about 4% fewer visitors than the previous year, 1.4 million tourists less than in 1989. Because of high prices. This was a huge blow for a country whose tourism industry represents nearly 9 per cent of gross domestic product and employs 11 per cent of the workforce.

However according to(www.atheneum.com)The Spanish Press has reported different record for the 1999 . as it says the number of foreign tourists who have spent at least one noght in a hotel, apartment or camping during the first seven months of 1999 has exceeded 28 million, aproximately 8.4% more than the same period in 1998.according to the wensite, overnight stays reflect the healthy development of economic activity in the first months of the year better than tourist totals. During the month of June, overnight stays of foreign tourists were 17.7 million, so that average occupation was 5.7 days per person, practically the same as in 1998.

Pg 246 and 257

Railway etc gp 253

(www.atheneum.com)Tourist promotion encompassed such routine activities as advertising and distributing maps, information folders, and lists of accommodations and shops. In addition, tourist offices were maintained in major foreign cities in order to encourage, to advise, and to assist people planning visits to Spain. Within the country, tourist assistance was provided by a network of more than seventy local tourist information offices found in all major cities and sites of interest.

Although most tourist accommodations were privately owned and operated, there was considerable government supervision of the industry. All restaurants and hotels were inspected, classified, and controlled by the Ministry of Transportation, Tourism, and Communications. Prices for meals and accommodations were controlled, and establishments catering to tourists were required to maintain complaint books which were intended to help the ministry's inspectors identify any shortcomings. In addition, the government operated a number of accommodations. These establishments included the above-mentioned paradores, many of which were converted castles, palaces, or other buildings of historical or cultural interest. Government-operated inns (albergues) were maintained on highways away from larger cities and towns, and many areas had hostels (hosterias), which were government-operated restaurants featuring traditional regional dishes. The ministry also maintained a number of mountain lodges (refugios).

Oecd book

diversifieswww.internationalspecialreports.com/Spain's ability to lure visitors, again and again, to its tourist attractions is a vital force in the nation's economy. Tourism is the biggest generator of earnings, contributing about 11 percent to the country's gross domestic product and accounting for more than 9.5 percent of Spain's employed labor force.

More than 46 million tourists visited Spain last year, topped only by the United States and France. The industry has been gaining importance in Spain for years, its new sophistication proving valuable both at home and overseas, where Spanish tourism companies are rapidly becoming a potent force.

Despite its success -perhaps because ...

This is a preview of the whole essay

Oecd book

Despite its success -perhaps because of it- Spain's tourist industry faces the challenge of reinventing itself. With more than 70 percent of its visitors coming from other European countries, Spain must reach out to that "mature" market in different ways to increase revenues and avoid losing loyal visitors to new competitors. It also needs to redouble its efforts to tap other, more distant markets, including the United States, to keep its lead in the field. González's assessment may be on target. The Islands, especially the largest -Mallorca- are home to Spain's largest hotel chains, which have expanded to other regions within Spain and abroad.

Running at full capacity during the peak summer months, the Islands are now drawing in winter visitors with offers of golf, sailing and special cultural and sporting events. "They come for vacations that don't have anything to do with the beach," González says

General Director of the Spanish Tourism Institute (TURESPAÑA) Carlos Horno says the industry is taking a wider perspective. "We have to develop policies that focus on the medium term," he says. "We have to reinvent ourselves -leaders can't copy."

The challenge is that of a changing world, where cheap airfares have made the furthest corners of the globe accessible to most -and created new competitors. The advent of the European single currency, the euro, also forces change, as do the increasing demands of tourists.

He says that Spain must shake off an image as a place that offers little more than sun, sand, sangria and cheap paella. The nation's cultural richness must be exploited, he says, as well as its gastronomic excellence. Unlike the Balearic Islands, Catalonia's tourist infrastructure has room to grow, but into quality rather than quantity, Hortal says. "Remember that 50 years ago, Caribbean tourism was in its infancy, while we already had a massive industry. Obviously, we must constantly improve our hotels and service to allow sustainable growth."

Cities are making the most of their traditional assets –art and culture– in order to revitalise their centres. They are using museums, theatres, operas and auditoriums to promote economic development. These new cultural infrastructures are conceived to relate with other buildings and spaces within the widest framework of economic and urban regeneration.

The recent cultural evolution of Metropolitan Bilbao is characterised by intense investment, which has allowed it to successfully promote itself to foreign countries as a city closely associated to leisure and culture. These returns will subsequently help to promote a strong cultural industry within the metropolis, hence the generation of job openings and a higher quality of life. The Guggenheim-Bilbao Museum, the best example of Metropolitan Bilbao's backing of culture as a tool of revitalisation and sector of the future, has welcomed literally flocks of visitors during its first year of opening. With 1,300,000 visitors during 1998, it has surpassed even the most optimistic forecasts and has spectacularly contributed to the international projection of Bilbao and the Basque Autonomous Community as a whole.

Espanya website more from pg 257
website ()Cultural tourism: Spain is made up of a combination of cultures. This diversity is reflected in its distinct artistic currents. Spain houses some of the best museums in the world such as the Prado, the Thyssen-Bornemisza, the Picasso Museum and the Guggenheim Bilbao.
This diversity and contrast which makes up the character of Spain is also seen in its cities. In Spain, one can find both major metropolis such as Barcelona and Madrid, as well as numerous smaller cities which have been declared World Heritage Sites. In order to encourage this sort of tourism, the «Plan for the Promotion of Cultural and Linguistic Tourism» was put into practice in 2002, involving an investment of 70

regeneration in Spain

• Starts in the 1980s, following the experience in rest of Europe

– After boom in the 60s, general economic crisis at the end of the 70s

– Old industrial cities aspire to become service-led and creative cities

• Political leaders see benefit of integrating CP in urban development

– Integral city development: social, education, urbanism, tourism & heritage

– Range of strategic plans for local development focused in cultural action

• New urban and cultural planning grows in parallel to democratic process

– New posts established in municipalities (cultural managers, urbanists)

– New concepts: city marketing, cultural/urban tourism, cultural regeneration

• Improving image and ‘selling the city’, key arguments for

regeneration through culture

www.culturalpolicy.arts.gla.ac.uk

CENTRE FOR C U L T U R A L P O L I C Y RESEARCH

www.beatrizgarcia.net

Regeneration, CP and flagship projects

• Enthusiasm for new initiatives allows sustained growth of cultural

budget (1980-1992)

– Generous investment in new local cultural infrastructures and festivities

(covering the lacks of Franco regime)

– Flagship projects/events seen as a key platform to improve city image

– Peak in 1992: Barcelona Olympics, Seville Expo, Madrid City of Culture

• Second half of the 1990s: a halt in urban cultural investment

– Once key infrastuctures are finished, difficult to justify the benefits

of sustaining cultural budgets for community development

– Priorities shift: dealing with immigration, transport, unemployment…

– Post 1992, questioning the long-term legacy of major events for

host cities and citizens: e.g. a white elephant in Seville?

www.culturalpolicy.arts.gla.ac.uk

The city of Bilbao

• Context

– Post- industrial city, North of Spain. Traditionally the largest and most

active Spanish port to the Atlantic

– Mid 1970s: associated with unemployment and political violence

– Disadvantaged with democratic re-structuring: Basc capital in Vitoria

– Contested identities (Basc vs Spanish) undermine confidence

– Strong tourism competitors: San Sebastian & Santander

• Potential for improvement and regeneration via culture

– History of good relations public

Regeneration via flagships - emphasis on design & aesthetics

– Futurist subway system designed by Norman Foster

– 1997, opening of Guggenheim-Bilbao designed by Frank Gehry

• Short term benefits:

– Great success in city image transformation (worldwide publicity beyond

average tourism media- fashion, design, musical clips, advertising)

– Remarkable tourism rise (1994-2000: + 42.7% foreign, 58% Spaniard)

• Challenges

– How sustainable is the economic impact for the city at large?

Is it benefiting the locals? Is it addressing social issues?

Website

Green Spain

But the Cantabrian also has another side made up of warmly welcoming landscapes, of noisy fiestas and celebrations, of silent hills which are always green and naturally of great industrial centers and ports whose silhouettes are marked by tall cranes. It would be an error to think of the Cantabrian Coast as something which is uniform.

The Cantabrian Coast is, in the end, a complex sampling of urban and rural cultures, of "inland" ways of life and those which continue to be intimately linked to the sea; two aspects which so frequently blend together that it would be a waste of time to see them separately. And it is a sampling, as well, of different cultures. Upon skirting the coast, from the Biscayne Gulf to the Rias Gallegas (Galician Estuaries), the traveller will get to know four autonomous communities, four languages - the Basque tongue, Castilian or Spanish, Bable or the Asturian dialect, and Gallego or Galician- and indefinite amounts of differential features which have a great deal to do with the traditions and somewhat less to do with the natural environment.

But it is in the strip of land which borders the coast and always limited by a curtain of mountains, that the autochthonous traditions have been conserved in a truly exceptional manner. The rural and urban craftwork, the fiestas, the ritualised work converted into competitive sports, legends and myths, have survived in a kind of stubborn determination, despite these times of industry and reason. It is difficult to locate a starting point -a specific origin- in the traditions which make up the popular culture but in some cases, it does not seem adventurous to say that they date back to the Pre-Roman cultures, to the times of the Celts, the Asturs, the Cantabrians and the Vascons, who probably knew a setting quite similar to the valleys and forests which we see today in the North of Spain. The four regions which line the Cantabrian Coast may appear as Paradise to anthropologists though it is not at all necessary to resort to scientific interests in order to justify the traveller's curiosity.

Tourspain launches its new and first promotional campaign o The General Secretary of Tourism has introduced its first on line campaign implemented to promote Spain as tourist destination. This publicity campaign has a total budget of 4 million euros and the 90% of its budget will be directed mainly to United Kingdom, Germany, France and Italy. The strategy is based on a product planning where cultural tourism will be on first stage, going on by sun and beach tourism, sports and natural tourism. The campaign consists in online publicity, strategy alliances with horizontal and vertical ports, e-mail marketing and the optimising search engines through the advertising announcement of the letter ñ piercing in "Spain marks" in yahoo home in Great Britain, France and Germany. Before the launching of the campaign it's expected that 400 doorsteps had got links directed to .

Spain's tourist board has temporarily withdrawn an ad showing a woman's half-naked bottom marked by the suntan outline of a thong with the slogan "Spain marks," after a deluge of complaints that it was sexist. The ad was pulled after protests by political and women's groups. A meeting of regional government and tourist authorities will decide whether the poster should be banned altogether. "This resorts to the figure of a semi-naked woman as a tourist attraction, which is pitiful and it seems like we're taking a step backwards," said Micaela Navarro, responsible for equality issues at the main opposition Socialist party. Tourism is Spain's biggest industry, accounting for more than one tenth of its economy. The "Spain marks" campaign has already been launched internationally, with a series of different photographs deemed to cause less offence.Clearly, the Spanish care how they make their money.

n line.

Horno says Spain won't abandon the "sun and sand" golden formula it used to become a tourist mecca. The nation's miles and miles of beaches are a magnet for northern Europeans and others attracted by the nation's welcoming reputation, whatever the visitor's budget.

"It's not only crucial [to maintain this type of tourism], it's basic," he says. "But, we don't just have to maintain it, we have to improve it."

============================================================

In 2001 Spain got 75,5 million foreign visits. But some of the visits were only border crossings, without any overnight stay, for instance French and Portuguese visitors coming for shopping, or North-Africans working in one of the Northern European countries, crossing Spanish territory for vacations in their home county without using any kind of tourist lodgings on the way. The tourist authorities have estimated that 49,5 million were real tourists, staying for at least 1 night in private or collective lodgings.

million British tourists came to Spain. For that year an increase by 800.000. In 2002 there has been a downward trend.

Germany is taking second spot, with 10,5 million tourists in 2001, down 600.000 from 2000. The downward trend has continued in 2002.

France delivers 6,7 million tourists in 2001, almost 1 million more than in 2000.

After the 3 big countries follows Italy with 2,2 million tourists in 2001, Holland with the same number, Belgium 1,6 million and Portugal 1,4.

92% of the foreign tourists coming to Spain in 2001 went to 6 regions, in the following order of importance: The Canary islands, the Balearic islands and Catalonia (with each 10 million tourist visits, or 63% of total), followed by Andalucia (7 million tourists, 14,4% of total), the Valencian region (9,3%) and Madrid (6%). The Cantabrian coast had 3,7% of total tourism and the remaining 3,9% was spread on all the interior provinces.

The Balearic islands continued also in 2001 the decrease (- 2,2%) starting in 2000, due to its strong reliance on the German market. Catalonia had in 2001 the strongest increase, with 10,2%.

That Spain is a world power in tourism, can be seen from the number of beds in the various regions for the different kind of lodging:

In 2001 there were 16.287 hotels or similar establishments in Spain, 38% being hotels. The total hotel sector has 1,3 million beds, 81% of them in hotels. Most of the hotelbeds can be found on the Balearic islands: more than 310.000. Catalonia has almost 250.000 beds, Andalucia almost 200.000, Canarias almost 150.000 and the Valencian region 100.000.

spanks- norsk websiteDevelopment of tourist accommodation
In 2002, hotel accommodation grew 4.4% in number of available rooms but less rapidly in terms of establishments, which grew at 2.3 %. This was due to a slight increase in the average size of hotels. Growth has been especially accentuated in the Autonomous Community of Valencia, where the number of rooms available increased 9.5% in 2002, while the number of hotels rose 4%.
Five Autonomous Communities provide the bulk of hotel accommodation.They are the Balearic Islands with 22.1%, Catalonia with 18.8%, Andalucía with 15.1%, the Canary Islands with 10.9% and Valencia with 7.8% of the total. Hotel accommodation in the Balearic Islands and the Canaries is characteristically centred on larger establishments, with the average hotel offering 321 and 318 rooms respectively

Since demand for beach holidays in Spain has been consolidated, a policy of diversification in the tourist sector is being undertaken. This combines with new tendencies for more frequent, shorter holidays and different modes of transport to lead people to discover other itineraries and seasons in which to enjoy their leisure time and contribute to easing the seasonal effects of the tourist industry.
The Comprehensive Plan for Quality in Spanish Tourism
The leadership of the Spanish tourist sector is based on quality. The Comprehensive Plan for Quality in Spanish Tourism (PICTE 2000) is the result of the many efforts made by both private and public sectors. The plan consists in the creation of demand for new products ranging from complementary activities to complete holidays, as well as renovating existing offers and generating public investment in infrastructure. The aim is to ensure that the concept of the «quality holiday» is a factor that makes Spain stand out from other destinations on the international markets.

Mention should be made of golf and skiing, due to the size of the infrastructure catering for them. Golf can be played all year round thanks to over 200 courses, most of which with 18 holes, offering in total over half a million hours of playing time. From the Pyrenees to the Sierra Nevada in Andalucía, ski resorts around Spain boast great technical quality and perfect hotel and leisure infrastructures.

(airwise website) In the first 10 months of the year, 46.7 million tourists visited Spain, just 0.1 percent more than the same period in 2002. Of those, 4.5 million came in October alone, which is low or mid-season in mainland Spain but the beginning of the winter season in the Canary Islands off the coast of Morocco. Utrera said two trends were becoming more pronounced -- the rise in the proportion of tourists coming without an inclusive package and the increase in people using low cost airlines.

Almost 54 percent of foreign tourists between January and October made their own travel arrangements. Some 5.4 million used budget airlines, 44 percent more than in the same period 2002, Utrera said.

spanks- norsk websiteHealth tourism is on the rise, with a seemingly unstoppable increase in demand for beauty treatment and relaxation. In 2002 the combination of centres dedicated to tourism focusing on health and beauty generated a business worth 606 million euros, 18% more than a year earlier.
Currently, Spain boasts 130 health resorts, 22 thalassotherapy centres, 24 health and beauty complexes and 50 hotels with their own Spas, most of which are operated by large multinationals. Spahotels provide a good way to combat the seasonality of Spanish tourism. Furthermore, some of the hotels have started to compete with health resorts and thalassotherapy centres by mixing business tourism with health tourism to generate more added valued and distinguish themselves from the competition.

Rural tourism began in the nineties and is growing year by year. In 2002 the number of stays in establishments of this sector grew 12.2%. Rural tourism facilities are largely used by Spanish tourists but 2002 has seen a considerable growth in foreign visitors.
The clear increase in holiday homes is having a notable effect on the economy. They are an example of trends in tourism which obviously contribute to easing seasonality, developing population centres and attending to new tendencies related to the different work habits and ways of enjoying one’s leisure time.

Euromonitor international website Spain ranked second worldwide in number of tourist arrivals in 2001, after France.

There were 49.8 million international arrivals in Spain staying one or more nights in 2001, up by 26% over the review period. British and German visitors accounted for 49.7% of total arrivals.

There is a recorded mounting trend among Spaniards towards taking shorter and more frequent holidays reducing seasonality.

============================================================

future

www.tourspain.co.uk

2004, there will be an intense promotion of Spain as cultural destination, owed to the celebration of Forum of Cultures in Barcelona, the Salvador Dali's centenary and the Holy Year in Santiago de Compostela. The international promotion for 2004 will have got with an ambitious investment plan in advertising campaign and familiarisation trips for foreign journalists. The General Secretary of Tourism has introduced its first on line campaign implemented to promote Spain as tourist destination. This publicity campaign has a total budget of 4 million euros and the 90% of its budget will be directed mainly to United Kingdom, Germany, France and Italy. The strategy is based on a product planning where cultural tourism will be on first stage, going on by sun and beach tourism, sports and natural tourism. The campaign consists in online publicity, strategy alliances with horizontal and vertical ports, e-mail marketing and the optimising search engines through the advertising announcement of the letter ñ piercing in "Spain marks" in yahoo home in Great Britain, France and Germany. Before the launching of the campaign it's expected that 400 doorsteps had got links directed to .

n line.

According to the World Tourism Organisation, in the next five years, between 800,000 and 1.7 million European families will buy their second home in Spain, looking for optimum conditions for tourism, a good climate, security, political stability, modern infrastructure and an unbeatable quality of life.

undoubtedly Spain is one of the most important tourist destinations in the world and undoubtedly the leading country for beach holidays. It is the second largest destination after France in terms of the number of visitors and the second in terms of revenue generated after the USA. Both revenue and visitors have increased significantly over the last few years. Spanish tourism today is a solid, well-founded sector which has learnt to grow, consolidate and undertake large investments to improve quality at the right stage of the global economic cycle.

The sector has also known how to perform better than the competition in difficult situations such as the period following 9/11, demonstrating its capacity in terms of quality and competitiveness.
In the words of World Tourism Organisation General Secretary Francesco Frangialli: «Spanish tourism stands out for both the variety of activities it has to offer, which are no longer centred around beach holidays, and its regional diversity, which means that demand is not

Plans include the massive renovation -and even destruction- of existing tourist hotels in preparation for the 21st Century; inventing new ways to entice visitors during Spain's slow winter tourism season; creating new attractions, such as theme parks; and greater promotion of historical and cultural sites. Spain's goal: to increase tourism to 100 million visitors by the year 2005. To attract different nationalities, the Islands are now reaching out to Eastern Europe and Russia, while marketing in the United States and Japan is also planned.

()

Tourism

Although historical sites and unique cultural features had always made Spain attractive to foreign visitors, the tourist boom that began in the mid-1950s was based primarily on the recreational assets of the Mediterranean seashore areas. The country had fewer than 1 million tourists in 1950, but the number rose steadily, reaching more than 34 million in 1973 and 50.5 million in 1987 (see , Appendix).

The tourist boom had a significant, and not wholly beneficial, impact on the Spanish economy. Though it was a welcome source of foreign exchange and created new employment opportunities, it also diverted capital investment and construction efforts away from more stable economic activities to a sector subject to seasonal fluctuations, the whims of fashion, and worldwide economic conditions.

Nonetheless, the importance of tourism to the Spanish economy was substantial. Net tourist receipts averaged about 5 percent of GDP in the early 1970s, but in 1987 that figure rose to almost 10 percent, as receipts rose to US$14.7 billion--more than enough to cover the country's merchandise trade deficit. On a net basis, Spain's tourist revenues were the highest in the world. The United States had higher gross revenues, but its tourist expenditures exceeded revenues by a considerable margin.

Spain's 50.5 million foreign visitors in 1987 constituted 12 percent more than had come in 1986. Most of them came from the EC, with France, Portugal, Britain, and West Germany leading the way. American tourists accounted for less than 2 percent of the total, but they spent more per person than their European counterparts making the United States the second source of tourist receipts after Britain. Tourism was projected to remain strong in 1988, with a 5 percent increase in visitors. Tourist sector spokespersons were more concerned about raising tourist spending, however, than with increasing the number of visitors. The average expenditure per foreign visitor increased only 2.4 percent in 1987.

The most popular resort areas were the Balearic Islands and the Mediterranean coastal areas. The Balearic Islands generally accounted for about 34 percent of the number of nights foreign tourists spent in Spain; the Costa Brava and the Costa Dorada, stretching from the French border through Barcelona to Tarragona, accounted for 22 percent; and the Costa del Sol and Costa de la Luz, extending from Almeria on the southern--or Mediterranean-- coast to Ayamonte on the Atlantic coast at the Portuguese border, accounted for 12 percent. The distant Canary Islands attracted 13 percent of Spain's foreign guests, and land-locked Madrid was host to 8 percent. Cultural festivals were instituted in Santander and Madrid in an effort to increase the attractiveness of these cities. The seaside resorts continued to dominate the tourist industry, however, despite considerable government effort to stimulate interest in visiting historical and cultural sites.

Although areas on the northern coast facing the Bay of Biscay were accessible to the rest of Europe and had good weather in the summer, when most Europeans and Americans took their vacations, their share of the tourist trade was only about 3 percent. San Sebastian was the center of the tourist industry on the Bay of Biscay, and nearby towns were also popular, but their allure was limited by tourist apprehensions over continuing political turbulence and violence in the Basque region.

Tourist centers farther to the west, on the Cantabrian coast and in Galicia, were not so commercially developed as the better known Basque or Mediterranean resorts. Accordingly, their appeal to tourists was their traditional Spanish flavor. They also provided visitors with less elaborate, but also less expensive, accommodations.

Like most nations dependent on tourist trade, Spain was concerned about the underutilization, and sometimes overutilization, of facilities that was caused by seasonal variation in weather. These variations caused marked differentials in monthly tourist revenues and international trade receipts. July and August were the most active months; February was the least active. Efforts were made to develop winter sports facilities in order to increase the number of tourists visiting Spain during the colder months; however, competition from France, Switzerland, and Austria, where snow conditions were more reliable, constituted a formidable obstacle to success in this area.

Tourism was recognized, even before World War II, as an important economic activity worthy of government support. A chain of official hotels, known as tourist inns (paradores), was initiated at historical sites in the 1920s during the Primo de Rivera regime, and it was extended during the postwar years. Tourist promotion was a function of the Ministry of Interior until 1951, when the Ministry of Information and Tourism was created. In the late 1980s, the Ministry of Transportation, Tourism, and Communications took on this responsibility. The National Tourist Company, a state-owned enterprise, was engaged in the construction of hotels and tourist complexes.