Deep Crisis Looms. Warning Issued... July Marks Worst Month in History
Record tourism in Spain in July with 11.5 million visitors and €18.218 billion spent, but the hospitality sector only grew by 0.5%.
English · Original discussion in Spanish · Published
Despite the influx of tourists and their high spending, bar and restaurant revenue in July 2026 barely increased by 0.5%, marking the worst historical figure for this month.
The tourism sector in Spain is hitting records. In July 2026, **11.5 million international tourists** visited the country, a **4.6% increase** year-on-year. Their spending also reached historic figures, totaling **€18.218 billion**, a **10.9% increase** compared to the same month in 2025. However, this momentum has not translated into the hospitality sector with the same force. Sector revenue only grew **0.5% year-on-year** in July, the lowest positive growth recorded since the **National Institute of Statistics (INE)** began collecting data in 2002. The only worse records were drops during years of recession or health crisis.
## Slowdown at the Checkout Counter
The hospitality industry, which includes bars, restaurants, and accommodations, has seen its momentum gradually slow down. If growth was **13.8%** in July 2022, it dropped to **8.2%** in 2023, **7%** in 2024, and **5%** in 2025. The figure from this last July, **0.5%**, is a clear indication that something is not working as expected. The **Ministry of Industry and Tourism** had predicted that Spain would receive **43 million international tourists** during the summer, with spending approaching **€64 billion**. While visitor numbers and spending targets are being met, the impact on the local economy is less than anticipated.
Restaurant services, which include bars and restaurants, showed slightly better performance than accommodation, with growth of **0.7%** versus **0.3%**. Nevertheless, the industry association **Hostelería de España** points to several factors explaining this slowdown. One major factor is the increasing cost of living, which is affecting resident consumption. These consumers are more sensitive to inflation and thus tend to curb their spending on leisure and dining.
## Resident Budgets Under Pressure
The rising cost of services in general also plays a significant role. According to a report by **BBVA Research**, up to July, prices in transport had increased by **6%**, accommodation by **7.7%**, dining by **4.4%**, and recreational activities by **2.5%**. This generalized price increase, combined with restrained spending by local consumers, partly explains why the rise in tourists is not directly translating into higher revenues for the hospitality sector.
A survey conducted by the hospitality association reveals that **47.8%** of establishments consulted reported a reduction in revenue compared to the previous summer. Only **32.2%** managed to increase it, while **20%** maintained stability. Profitability has also been affected, with **46.2%** of businesses stating that it worsened, compared to **34.2%** that it remained stable and **19.6%** that it improved. The problem is not only the number of visitors, but also what they spend.
A **32.6%** of businesses received a number of visits similar to the previous year, and **26.1%** even recorded an increase, but more than half observed a reduction in customer spending.
## Heat Also Factors In
High temperatures have been another factor to consider this summer. Heatwaves may have altered consumption and mobility patterns, with differing effects depending on the area and business type. **57.2%** of establishments surveyed reported some impact from high temperatures, which tended to shift consumption towards the afternoon and night, particularly affecting bars and cafes. Geopolitical instability, which antiestéticared late February might divert tourists from other regions to Spain as a "safe haven," has not been sufficient to offset the effects of inflation and changing consumption habits.
The tourism sector in Spain is hitting records. In July 2026, **11.5 million international tourists** visited the country, a **4.6% increase** year-on-year. Their spending also reached historic figures, totaling **€18.218 billion**, a **10.9% increase** compared to the same month in 2025. However, this momentum has not translated into the hospitality sector with the same force. Sector revenue only grew **0.5% year-on-year** in July, the lowest positive growth recorded since the **National Institute of Statistics (INE)** began collecting data in 2002. The only worse records were drops during years of recession or health crisis.
## Slowdown at the Checkout Counter
The hospitality industry, which includes bars, restaurants, and accommodations, has seen its momentum gradually slow down. If growth was **13.8%** in July 2022, it dropped to **8.2%** in 2023, **7%** in 2024, and **5%** in 2025. The figure from this last July, **0.5%**, is a clear indication that something is not working as expected. The **Ministry of Industry and Tourism** had predicted that Spain would receive **43 million international tourists** during the summer, with spending approaching **€64 billion**. While visitor numbers and spending targets are being met, the impact on the local economy is less than anticipated.
Restaurant services, which include bars and restaurants, showed slightly better performance than accommodation, with growth of **0.7%** versus **0.3%**. Nevertheless, the industry association **Hostelería de España** points to several factors explaining this slowdown. One major factor is the increasing cost of living, which is affecting resident consumption. These consumers are more sensitive to inflation and thus tend to curb their spending on leisure and dining.
## Resident Budgets Under Pressure
The rising cost of services in general also plays a significant role. According to a report by **BBVA Research**, up to July, prices in transport had increased by **6%**, accommodation by **7.7%**, dining by **4.4%**, and recreational activities by **2.5%**. This generalized price increase, combined with restrained spending by local consumers, partly explains why the rise in tourists is not directly translating into higher revenues for the hospitality sector.
A survey conducted by the hospitality association reveals that **47.8%** of establishments consulted reported a reduction in revenue compared to the previous summer. Only **32.2%** managed to increase it, while **20%** maintained stability. Profitability has also been affected, with **46.2%** of businesses stating that it worsened, compared to **34.2%** that it remained stable and **19.6%** that it improved. The problem is not only the number of visitors, but also what they spend.
A **32.6%** of businesses received a number of visits similar to the previous year, and **26.1%** even recorded an increase, but more than half observed a reduction in customer spending.
## Heat Also Factors In
High temperatures have been another factor to consider this summer. Heatwaves may have altered consumption and mobility patterns, with differing effects depending on the area and business type. **57.2%** of establishments surveyed reported some impact from high temperatures, which tended to shift consumption towards the afternoon and night, particularly affecting bars and cafes. Geopolitical instability, which antiestéticared late February might divert tourists from other regions to Spain as a "safe haven," has not been sufficient to offset the effects of inflation and changing consumption habits.
Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (14 replies).
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