Decline in Spanish hotel market as UK and German visitors dwindle

Spanish hotels have been hit by a fall in demand from German and UK visitors, according to consultant Deloitte & Touche. Its research shows that revenue per available room (revpar) in both Spanish city-centre and resort hotels fell during the first five months of the year compared with last year, with hotels in Madrid experiencing the largest decline of 8.9%.

This fall was exacerbated by the large increase in the number of new bedrooms in the city - some 18 hotels opened in Madrid between 2000 and 2002 and another 22 hotels are expected to open this year.

Three of the key Spanish resort markets: the Balearic islands, the Canary Islands and the Costa del Sol, experienced revpar declines of 7.9%, 2.6% and 8.6% respectively. Deloitte & Touche said the drop in hotel demand was attributable to declining German visitor numbers as well as the strength of the euro, which had deterred UK tourists..