Tourism in Spain: economic and social perspectives
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1 Tourism in Spain: economic and social perspectives Jose Antonio Mateos Royo University of Zaragoza Faculty of Economics and Public Management (Campus of Huesca)
2 Tourism in Spain Some reasons to follow this paper: Importance of tourism as economic activity to create employment to attract foreign investment to reduce commercial deficits Importance of tourism as strategy for late comers to capitalistic development: Mediterranean, Eastern Europe use of advantages of backwardness (Gerschenkron) Dependence of tourism on: historical evolution resources and means political and cultural background
3 Tourism in Spain Example: Spain world leader in tourism (2th country in arrivals) essential for national development (1960-actuality) Demography and Society (2017): Actual population: 46.5 millions Immigrants: 6.5 millions (2.3 from EU) Urban population: 77% Religion: Roman Catholics (94%), few practicants Languages: Spanish (74%),Catalan (17%),Gallego (7%),vasco (2%) Politics: Arrival of democracy ( ) Insertion into European Union (1985) Political decentralization at regional level
4 Tourism in Spain Economy: GDP/capita: 23,970 euros (92% EU average) (2016) Contribution of economic sectors: (2016) % Active % Sectors population GDP 1) Agriculture 4.6% 2.3% 2) Industry 13.9% 16.1% 3) Building 5.9% 5.1% 4) Services 75.6% 67.2% (69% NEW JOBS) Unemployement: 16.7% (2017) State public debt: 98.1% GDP (2017) Trade openness ratio = (Imp + Exp)/ GDP: 47.4% (2014) Export/import coverage deficit: 84% GDP (2014) (66.8% in 2008) Current account superavit: 1.7 GDP (2017) (-10% in 2007) (improvement of trade balance + tourism incomes)
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6 Tourism in Spain Part I International tourism in Spain (nineteenth century-1973)
7 The precedents: nineteenth century The Romanticism: travels by foreigners Reasons: adventure attraction for Spanish past and Catholic religion (Antiquity, medieval, early modern times) interest on Spanish folklore search of exotism Character of travellers: men, singles, educated, often conservative, well-off people Examples: Rilke, Irving, Chopin, Rodin, Renoir
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13 The precedents: nineteenth century Context: a) inadequate infraestructures and facilities ( adventure ) b) dependence on personal contacts with Spaniards Results: Few visits >> not significant in economic terms Transmision of a exotic picture about Spain (Washington Irwing: The Alhambra/ 1832)
14 The beginning of tourism: the early twentieh century ( ) Context: progress in Europe (tourism demand) modernization process in Spain (1920s) Creation of the National Comission for Tourism (1905) Creation of the National Patronat for Tourism (1928) Character: Goal: Promotion of cultural tourism (nationalism) economic effects just considered from 1928 onwards (tourism: non-productive activity)
15 The beginning of tourism: the early twentieh century ( ) Positive points: Creation of legislation and public institutions Consolidation of some tourist attractions cultural tourism : recovery of cultural heritage (state hotels paradores - in historic buildings) promotion of Spain abroad propaganda and marketing (cartels) International Exhibitions (Barcelona, Seville, 1929) debate on tourism > Tourism International Conferences
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19 The beginning of tourism: the early twentieh century ( ) Problems: Few means and attention from public sector Slow means of transport mainlands visited by natives (rail, road) foreign tourists concentrated on the coast (ship) Poor offer of accommodation (despite public regulation)
20 The beginning of tourism: the early twentieh century ( ) Character of foreign tourism: Social extraction: accomodated people Source markets (1932): France (68,27%), UK (13,33%), Germany (8,06%), USA (5,19%), Italy (3,58%), Belgium (1,56%) Transport: ship -maritime routes between metropolis and colonies -transit between mediterranean sea and atlantic ocean Urban, cultural tourism (mediterranean coast)
21 The beginning of tourism: the early twentieh century ( ) Modest tourism development: 192,000-96,000 tourists ( ) 187, ,000 tourists ( ) (Italy: 3.9 millions, Germany: 1.7, France: 1) Small contribution to the economy: income from tourism: 0.5% GDP (1900) 0.42% GDP ( ) covering of commercial deficit: 16% (1900) 5.1%-8.6% ( )
22 The dark ages: civil war and autarchy ( ) Spanish civil war ( ) civil conflict between 2 political and economic models destruction of phisic and human capital victory of the right: Franco s dictatorship ( ) Autarchy ( ) Goal: economic autosuficiency (fascism) Mean: state control (excessive, inefficient) restriction of imports (protectionism) appreciation of national currency control of money exchange regulation of business activity promotion of national industrialization (not competitive)
23 The dark ages: civil war and autarchy ( ) General Direction for Tourism ( ) Political context: 2º W.W ( ) + isolation ( ) international suspicion about Spain (dictatorship) gobernement s suspicion about the penetration of liberal ideas trough international tourism opposition of fascists (tourism = exaltation of national and religious identity) Character: excessive legislation and burocratic control perception of insuficiencies on infraestructure transport accommodation small public support for private initiatives
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26 The dark ages: civil war and autarchy ( ) The beginning of liberalization ( ) international political acceptance of the dictatorship ( ) + USA help (1953) cold war - attenuation of state rigid controls on economy Ministry of Information and Tourism (1952) >> supported the significance of tourism: a) to get foreign currency b) to promote political acceptance of the dictatorship abroad (improvement of Spain s image ) > importance of propaganda for tourism marketing (creation of Foreign Tourist Offices abroad)
27 The dark ages: civil war and autarchy ( ) Public policy: reduction of burocratic tramits state control on tourism inside trough: transports (increase of public investment) hotels (private property but public regulation) goal: to protect consumers by containing the cost mean: to fix accommodation prices ( ) result: reduction of benefits for businessmen Tourism marketing abroad was left to foreign agencies tour-operators >>packet holidays (charter+hotel) result: relegation of national agencies (excursions)
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30 The dark ages ( ) Increase of visits: 83, ,000 ( ) 909,000-2,864,000 ( ) (1950, 8th country in the world by arrivals) Contribution to the economy: income from international tourism: 0.03%-0.12 GDP ( ) 0.25% GDP ( ) covering of commercial deficit: 9.5% ( ) 37.6% ( )
31 The boom of international tourism ( ) Liberalization of economy ( ): deterioration of Spanish economy ( ) Influence of international institutions ( ): OEEC, IMF, WB Result: Stabilization Plan (1959) >> rationalization and liberalization of Spanish economy partial reduction of customs tariffs reduction of control on foreign exchange devaluation of currency + control of inflation
32 The boom of international tourism ( ) Improvement of industrial equipment required currency, to be supplied by: Foreign investors Spanish immigrants working in Western Europe (Golden age of capitalism) Foreign tourists Political goal: increase of tourism at any price
33 The boom of international tourism ( ) Reforms >> promotion of tourism: improvement of infraestructures reform of historic monuments ( paradores ) increase of credits for private initiatives (hotels) privatization of public spaces in the coast (ports) Difficulties: absence of real planification small national investment (small benefits) lack of international investment (10% in ) lack of well-trained professionals (languages) dependence on tour-operators for marketing
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36 The boom of international tourism ( ) Results: radical change of tourism pattern Social extraction: middle class (families on holidays) Diversification of source markets (1977): France (51%), Germany (16%), UK (16%), Belgium (5%), USA (4%), Italy (2%) Seasonal and space concentration of tourism in summer in the mediterranean coast (model of tourism sun and beach )
37 The boom of international tourism ( ) This mass-tourism was promped by: Reduction of burocratic tramits (frontier) Improvement of transport network: 85% of arrivals by road (73% by car, 12% by train) 12% by plane (charter), 3% by sea ( ) Increase of accommodation offer: high class paradores in historic buildings medium size-low quality hotels (low prices) BUT no participation of international chains
38 Carretera = road, aeropuerto = airport ferrocarril = train, puerto = port
39 The boom of international tourism ( ) Expansion of visits: 4,332,000-31,335,000 ( ) annual increase: 15% (1970, 4th country in the world by arrivals) Benefits: increase of employment (structural change): services: hotels, restaurants, agencies construction transport expansion of income coming from international tourism: 3.5 GDP ( ), 5% GDP ( ) better covering of commercial deficit: 62.3% ( )
40 Tourism: number of visits by foreigners to Spain ( )
41 The boom of international tourism ( ) Costs: tourist concentration in the coast: (problems of supply, transport, etc) drastic urbanization process >> speculation rapid degradation of natural environment (no public legislation) marketing control by foreign agencies, that: did occupy the best spaces at low cost did obtain the main benefits
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44 Tourism in Spain ( ): conclusions Tourism as alternative for late comers to capitalism with disadvantages: not-competitive industrial production lack of native capital and business network inadequate education and technology low qualification of services In this situation, tourism can allow: creation of employment attraction of foreign investment reduction of commercial deficit
45 Tourism in Spain ( ): conclusions Usual problems for tourism: dependence on foreign marketing >> reduction of national benefits serious costs (speculation, environment) dependence on foreign demand (competition + evolution of world economy) Importance of public regulation: to maximize national benefits to preserve social rights and the environment to stimulate alternatives (tourism as starting point for productive activities)
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