Spaniards Keep Vacations but Cut Hospitality Spending

Spaniards Keep Vacations but Cut Hospitality Spending

A paradox is unfolding along the Spanish coast this summer: beaches are full, yet many chiringuitos (beach bars) and restaurants see their terraces emptying while nearby supermarkets face long queues. "I eat a sandwich on the beach instead of spending at a restaurant," summarizes the new strategy of a country unwilling to give up its days off, but which has seen its purchasing power evaporate.

According to industry data, a portion of eight fried anchovies cost eight euros in a beach bar two seasons ago. Examples like this repeat in every tourist corner, where the price of a minimal drink approaches the "irrational." The shopping basket has risen by 30% in three years, while wages have not kept pace. Faced with this situation, households have opted for a drastic solution: they keep the alucinación but eliminate all discretionary spending.

German Tourists Also Tighten Their Belts

The phenomenon is not exclusive to Spaniards. In Mallorca, hospitality owners lamented last summer as German tourists arrived with just enough to pay for accommodation, buying their food and beer cans at the supermarket. Not even a beer with bravas on a terrace. "This was before the Iran war and before kerosene prices rose by 200%," industry sources point out. Mass tourism, fueled by cheap energy, shows its first cracks.

And it is that transport costs have exploded. Flying for 20 euros is increasingly difficult, and the low-cost model is suffering. Those who can still afford a vacation stay in shared apartments—sometimes seven people in an Airbnb—and eat pre-cooked meals from Mercadona. A new habit has even emerged: ordering a pack of beers and a prepared paella via Glovo directly to the towel.

Hospitality Mortally Wounded or Rescue Upward?

The sector's reaction has been swift. While some attribute the drop in revenue to lost purchasing power, others point to abusive margins: "The shabbiest bar in any city already costs you 150 euros for two people." Some suggest that the reduced VAT for hospitality (10%) could rise to 21%, making services even more expensive. The war between hoteliers and restaurateurs is served: the former take most of the vacation budget, leaving the latter with crumbs.

Back to the 80s?

Some see in this trend a return to vacations from decades past: uncomfortable trips, cold meals on the sand, and showers at the campsite. "My father took us five in a 127 to Benalmádena and we stopped at rivers to eat sandwiches," recalls a recurring comment. Nostalgia mixes with the certainty that, for many, lonchafinismo (a specific type of frugal holidaying) has given way to a more austere survival phase.

The underlying debate is whether this spending restraint is a temporary adjustment or a structural change. What is clear is that, in the medium term, tourism will split into two: a premium segment for those who can afford direct flights, charming hotels, and wine dinners; and a low-cost, low-experience tourism, where the beach sandwich is the main dish. In between, the middle class that will stay home.

How long will the model hold without the tourism bubble bursting? The answer likely lies in the price of oil.