Tag: Egypt

Hotels Suffer from the First Decrease in Overnight Stays since 2012

24 January 2019 – Expansión

The record number of tourists registered in 2018 has not removed the bitter taste from the mouths of Spanish hoteliers, who are starting to suffer from symptoms that the sector is worn out. In 2018, Spanish hotels recorded the first decrease in the number of overnight stays in six years. A moderate decrease, of –0.1%, according to data from INE, but one that has not been seen since 2012, when Spain was in the midst of the financial crisis.

Spain is receiving more tourists than ever, and they are increasing their spending year on year, but they are also gradually reducing their average stay, and some of the demand is opting for alternative destinations, such as Turkey, which are competing on price, which is eroding the margins of many hotels at home (…).

According to data from Exceltur, Spain lost 21 million overnight stays in 2018, due to a decrease in the average stay. The boom in low-cost airlines, amongst other factors in the sector, has favoured the democratisation of tourism. Increasingly more people are travelling, but they are doing so for shorter periods. Whilst in 2008, the average stay was 9.4 days, it is now 7.4 days.

That change can be observed most easily amongst overseas tourists, who account for 65.8% of overnight stays and who decreased the number of nights spent in Spain by -0.4%, whereas domestic tourists increased their overnight stays by +0.4%.

The change in trend is being observed primarily in the traditional beach and sun markets, and in the most important months for the sector, in the height of the summer. In the Canary Islands, the primary destination for international tourists, accounting for almost one third of all overnight stays, visits by foreigners decreased by 3.6%(…).

According to explanations provided recently by the Head of Research at Exceltur, Óscar Perelli, these decreases reflect “the recovery of competitor countries”. Hotels, especially those on the beach, are being affected by competition in terms of prices from countries such as Turkey, Egypt and Tunisia. Those markets have recovered around 12 million tourists in recent years and they are still 20% below the levels they reached before their own crises (…).

Travellers from the United Kingdom and Germany account for 46% of all of the overnight stays made by non-resident visitors, and yet, there was a -0.9% decrease last year in the case of British tourists.

As a result, many hotels are trying to compete through promotional packages and cost reduction policies, and so prices barely increased in 2018. The Index of Hotel Prices from INE reflects a 1.5% increase in hotel tariffs, barely three decimal points above inflation for the year, making it the lowest rise in prices since 2013.

In terms of tourists who increased their hotel stays by the most, those who have to travel long distances, including visitors from the US (6.1%) are also the travellers who spend the most (€113 per tourist per day, compared with €98/tourist/day for those visiting from traditional markets), and so representatives in the sector recommend focusing promotional strategies to attract tourists from those countries.

Original story: Expansión (by Inma Benedito)

Translation: Carmel Drake

INE: Overnight Hotel Stays Rose By 7.4% YoY In July

24 August 2016 – Expansión

The Balearic Islands, Canary Islands and Valencia recorded the highest occupancy rates during the month. There was no “Brexit effect”: the British market grew by 15%. The sector believes that it has recorded from the losses of the crisis.

The tourism sector has moved full steam ahead during the first half of the year and, above all, so far this summer. In July, there were 42.8 million overnight hotel stays (28.1 million foreigners and 14.6 million Spaniards), up by 7.4% compared with the same month in 2015, when the figure had risen by 6% YoY. There are two main drivers of this acceleration: overseas tourists, whose stays increased by 8.2%, and Spain’s own residents, whose stays rose by 5.7% in July compared with last year, according to data published yesterday by INE. Sources in the sector consider that the problems of the crisis, above all in terms of the domestic market, are now behind us.

The autonomous regions with the highest occupancy rates during the seventh month of the year were the Balearic Islands (91%), the Canary Islands (84.9%), Valencia (77.9%) and Cataluña (75.8%). The most successful area in terms of the number of beds occupied was the island of Mallorca, with a 92.1% occupancy rate and Palma-Calvià, which achieved a higher occupancy rate on the weekends (90.9%). In terms of total overnight stays, the most popular area was the Costa del Sol, with more than 2.3 million overnight stays during the month.

And not only did the number of overnight stays rise, hotel prices also increased in July: by 7.5% compared with a year ago, which represents an increase of 1.5 points over the rate obtained then (6%). Again, the autonomous regions that contributed the most to this increase were the Balearic Islands (with a YoY increase of 10%), Andalucía (8.9%), the Canary Islands (8%) and Cataluña (5%).

In addition, the average revenue per room occupied stood at €93.20, up by 6.3% YoY. By hotel category, the average income was €208.40 for five-star properties; €102.40 for four-star hotels and €79.40 for three-star establishments (…).

In addition to the economic recovery, which has relaunched domestic demand after it was significantly depressed during the crisis, one reason that explains the strong tourism figures in Spain is the difficulties that competing countries are facing, such as Turkey, whose tourist market is experiencing decreases of 30% following the terrorist attacks in recent months, and Egypt, with a decline of almost 70%, following five years of political and social instability since the outbreak of the Arab spring (…).

For the time being, the figures do not reflect any negative effect from Brexit in terms of the arrival of British visitors. Quite the opposite: in July, Brits recorded 1.28 million overnight stays in Spain, up by 15% compared with the same month in 2015. “So far in 2016, the British market has grown by 20%”, said Juan Molas, Chairman of the Spanish Confederation of Hotels and Tourist Accommodation (CEHAT), who revealed that reservations made by tour operators for the winter season (November-April) already reflect an increase of 16% compared with the same period last year.

Despite the general recovery in terms of overnight hotel stays, sector representatives are still warning about the increase in the use of unregulated establishments through platforms such as Airbnb, Homeaway and Niumba, amongst others. “The use of these services unbalances the tourist model”, said Inmaculada Benito, Chairwoman of the Hotel Business Federation in Mallorca. A war has been declared on these types of businesses in cities such as Barcelona.

Original story: Expansión (by Yago González)

Translation: Carmel Drake