Alicante hospitality sector faces worst July in years

The summer Alicante's hospitality industry discovered tourism has limits

What if the issue isn't a lack of tourists, but that those arriving have less spending power? According to Cadena SER, Alicante's restaurateurs are sounding alarms: it was the worst July in years, and August is trending similarly. This isn't mere complaint; Abreca, the association for Benidorm—one of the Costa Blanca's tourism hubs—estimates a 7-8% revenue decline compared to last summer.

Officially, Spain continues to break arrival records. The problem is that tourists landing at El Altet (Alicante Airport) behave differently now. Or perhaps locals who stay home have stopped dining out.

Swiss prices with Spanish wages

The circulating figures are stark. A draft beer and tortilla slice cost €15. Bravas potatoes run €8-9. Calamari hits €15. A standard restaurant menu costs €20-25; adding paella, tapas, sangria, and dessert brings the bill to €40 per person. Coffee is €2, horchata €4.

Spain's hospitality sector has mirrored the price structures of the US, UK, or Switzerland—countries with significantly higher purchasing power. Consequently, average Spaniards, whose rent consumes half their salary, have done the math and decided the tortilla slice can wait. They now stay home with phones, TV, and Mercadona groceries.

If establishments resist lowering prices, tourists also calculate. A week in Alicante now costs what a month in Thailand does, flights included. Hotel nights have more than doubled from €180 for three nights. With this disparity, the Costa Blanca competes at a disadvantage against destinations offering sun, beach, and favorable exchange rates.

Full terraces, empty wallets

Abreca summarizes it bluntly: “Terraces fill up, but people are broke.” Venues operate at high occupancy, yet per-customer spending has plummeted. Patrons order one beer and share a snack, dine at the hotel, or just grab an ice cream downstairs.

The president of ARA notes that cleaning staff in several hotels see supermarket food bags taken out daily. People eat in rooms to avoid restaurant bills. This explains much.

The sector itself hinders recovery. Staff shortages force closures of zones or entire days, losing revenue. Yet solutions don't seem to involve lowering prices, quite the opposite. Some propose raising beer to €50 to compensate, hoping to attract high-spending tourists again.

Meanwhile, restaurateurs lament, customers tighten belts, and Alicante discovers tourism isn't immune: when money is scarce, the first victim is the €40 paella.