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Crisis, late Easter hurt Spanish tourism in March
Wednesday, April 22, 2009 @ 6:28 PM

MADRID, April 21 (Reuters) - The number of foreign tourists visiting Spain in March fell by a fifth compared to a year ago, with British numbers undermined by recession and the weak pound and hurt by Easter falling outside the period.

Data from the tourism ministry on Tuesday showed 3.4 million tourists visited the world's second most popular destination last month -- 20.8 percent fewer than a year ago or 10.1 percent down when corrected for Easter falling in April.

Such a sharp fall will alarm Spain's second biggest industry after the devastated property sector. Tourism employs one in seven Spanish workers and made 42 billion euros ($54 billion) from the 57 million foreigners who holidayed there last year.

The March fall compares to a previously-reported 15.9 percent decline in February, which the tourism ministry said it had revised to a fall of 11.3 percent on Tuesday because of "calendar effects".

One of the biggest worries for industry bosses will be the fall in British numbers, down by a quarter in March.

Spain's biggest origin market is reeling from one of the worst economic crises in Europe and the weak pound makes euro zone countries such as Spain more expensive, and competitors like Turkey, Croatia and Egypt more attractive.

Lobby group Exceltur said 100,000 jobs in the industry will have been lost by next month compared to May 2008 -- the last time tourist numbers here rose. Spain's unemployment rate is already the highest in the OECD at around one in six workers.

"The crisis has affected us a great deal," said Exceltur Vice President Jose Luis Zoreda, adding that foreign visits would fall 6 percent and hotel stays by 8.1 percent in 2009.

A price war raging across the hotel, car rental and transport sectors was savaging profits as businesses scrap for custom, he said.

"Profits have fallen across the board and with great intensity," he said, adding that 42 percent of businesses were now loss making, and forecasting a 6.4 percent drop in sector income this year. (Reporting by Ben Harding; editing by Stephen Nisbet)

Source: Reuters



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2 Comments


VILPRANO said:
Thursday, April 23, 2009 @ 9:42 AM

THE BRITS HAVE HAD A SPECIAL AFFECTION FOR SPAIN AND THE SPANISH PEOPLE SINCE THE EARLY 60S. UNFORTUNATELY DUE TO CORRUPT PRACTICES IN A NUMBER OF AREAS THIS RELATIONSHIP HAS BEEN SEVERELY DAMAGED.
THE RESULT OF THESE EXCESSES IN THE CONSTRUCTION INDUSTRY/REAL ESTATE ARE NOW IN DANGER OF DESTROYING ANOTHER MAJOR INDUSTRY.
HOW FAR WILL THIS CANCER BE ALLOWED TO GROW BEFORE THE SPANISH GOVERNMENT PUTS THEIR HOUSE IN ORDER.
THIS IS NOW AFFECTING NOT ONLY EX PATS BUT THE ORDINARY SPANISH MAN IN THE STREET.


Irene Blackwood said:
Thursday, April 23, 2009 @ 7:11 PM

Well done - you hit the nail right on the head. My husband and I plus many others are caught up in a living hell where our money was taken (we used what we thought was a reputable UK company) and together with the builder and the local solicitor we were all basically mugged and did not see it coming. After over 5 years we are still waiting for our deeds, although we did go to court and win our case.
The UK company only needed to tell us to take out a small Spanish mortgage (we paid cash and got a UK mortgage for the excess) and we would have been safe but no, there were too many back handers exchanging hands.
I now have deep distrust of Spain but still fighting for justice.


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