The Tourism Sector in Spain: Balancing Opportunities and Challenges
According to a recent report from OBSbusiness School, tourism accounts for 15.2% of the national economy. The year 2025 is projected to be a record-breaking one for this sector, with an estimated 98 million tourists expected to visit Spain, marking a 4% increase from the previous year. These tourists are expected to spend around €138.5 billion .
The data from the Ministry of Industry and Tourism indicates that the sector will employ a total of 2.99 million people . However, as highlighted in the publication Cinco Días, the main problem facing the hospitality industry is not just the labor shortage . Although they can hire workers for the busy summer season, many of these potential employees cannot afford accommodation due to the high rental prices in tourist areas.
Working for the Landlord. According to the latest ‘Rental Price Report in Spain’ published by Idealista, the average price in Spain is €14.5 per square meter . Thus, a 60 square meter apartment should cost around €870 . However, prices surge in tourist areas like Málaga (€16.3/m2) , Balearic Islands (€19.7/m2) , and Barcelona (€23.9/m2) . In the case of the Balearic Islands , for instance, renting a 60 square meter home would rise to €1,182 , a figure that can double during the peak summer season.
The exorbitant rental prices make it practically impossible for workers from other regions to relocate to major tourist destinations during high season, as a significant portion of their wages would go just toward rent.
Work and Accommodation. Hoteliers in the Balearic Islands and the Canary Islands were among the first to raise alarms about this situation. Hotel chains like Meliá, Riu, Barceló, and Iberostar planned to expand their workforce to meet summer demand. However, due to difficulties in finding accommodations for new hires, these chains have been forced to reserve some of their facilities as staff housing during the summer months, offering it for free as an incentive to attract skilled workers. Meanwhile, hoteliers in the Canary Islands have even offered to build homes at controlled prices for their employees.
However, the Ministry of Tourism estimates that only 455,000 employees work in these larger hotel chains that possess the financial means to cover employee housing costs. The remaining 2.5 million employees belong to restaurants, bars, and other small businesses, leaving them with a severe dilemma—not a lack of workforce, but the fact that rental prices make it unviable for outsiders to move in for work during high season.
The Only Exit: Adaptation. It’s virtually impossible for local labor supply to meet the total demand in the hospitality sector during high season. Consequently, to cope with the hiring dilemma, restaurants and small hospitality businesses in these “overstressed” tourist areas have chosen to adapt by reducing their operation hours based on staff availability.
According to data from the employment portal Turijobs published by Autónomos y Emprendedores, 87% of hospitality businesses have had to implement these adjustments to their service hours due to workforce shortages.
Desseasonalization of Tourism. One of the key goals of the tourism sector is to desseasonalize tourism. This aims to stabilize demand throughout the year, thereby enabling a more relaxed labor market and economic continuity, rather than concentrating all activity in the summer months. As noted in El País, part of this objective has been achieved, with a 5.7% increase in tourist numbers in the first three months of 2025, prompting the tourist season to start earlier in May and extend beyond October .
The desseasonalization of tourism would enable employees to settle in these destinations throughout the year, not just in the summer months, thus stabilizing the availability of sufficient local labor.
Long-Term Strategies. Facing an unlikely scenario of moderating rental prices, the most affected businesses in the sector have adopted a long-term strategy of recruiting local personnel. This approach lessens reliance on workers from other regions, consequently alleviating the accommodation issue.
PortAventura World and the Universitat Rovira i Virgili signed a training agreement in 2024 for 150 employees per year. This agreement offers not only training accreditation but also employment at the facilities and Port Aventura resort upon completion. Similarly, the hotel chain THB Hotels has provided accommodation and training to over 2,000 employees since 2014 through their program THB College, effectively resolving the issues related to the shortage of qualified staff and housing.
As Spain navigates its intricate tourism landscape, the interplay between employment and housing remains a primary challenge. Addressing these issues through innovative approaches can transform potential hurdles into opportunities, paving the way for a more sustainable tourism industry.