Spain Joins US, Canada, Brazil, Germany, UK, Italy, and More in Experiencing a Massive Tourism Plunge for Nine Straight Months Amid Weakening Travel Demand, Everything You Need to Know

Spain Joins US, Canada, Brazil, Germany, the UK, and Italy, has experienced a significant decline in tourism for nine consecutive months, driven by weakening travel demand. This downturn reflects broader global trends influenced by economic uncertainties, political tensions, and inflationary pressures that have dampened international travel. As Spain continues to face slower growth in tourist arrivals and spending.

Tourism has long been a significant pillar of Spain’s economy. As one of the world’s most popular travel destinations, the country attracts millions of visitors each year, contributing substantially to its GDP. However, recent reports indicate that Spain’s tourism industry is facing an unexpected downturn. This decline is not unique to Spain but is part of a broader trend where several major global economies are witnessing a slowdown in tourism growth. According to a new analysis, tourism-related activities in Spain are expected to grow by just 2.8% in 2025, down from earlier estimates of 3.3%. This revision highlights the increasing challenges the tourism sector faces, influenced by economic factors that extend far beyond Spain’s borders.

A Sobering Review of Spain’s Tourism Growth in 2025

In the latest forecast from Exceltur, Spain’s leading tourism industry association, it was revealed that the country’s tourism growth in 2025 will be weaker than expected. With a revised estimate of 2.8% growth for the year, Spain’s tourism industry is grappling with several pressures, including weaker spending from European and U.S. visitors. This is a significant decline from last year’s robust 5.5% growth, indicating a substantial slowdown in both the number of visitors and the amount they are spending.

• Tourism Contribution to GDP: Spain’s tourism sector was initially expected to contribute 13.5% to the country’s GDP in 2025. However, this estimate has been reduced to 13.1%, underscoring the strain on the sector amid shifting global economic dynamics.
• Tourist Arrivals: The number of international tourists coming to Spain may fall short of the 100 million mark that the World Travel and Tourism Council (WTTC) predicted earlier this year. As of August 2025, Spain had welcomed 66.8 million international visitors, representing a 3.9% increase compared to the same period in 2024. Despite the positive growth, the pace has slowed considerably over the past nine months.

Factors Behind the Slowdown

A variety of economic factors are driving the slowdown in Spain’s tourism growth, some of which are tied to broader global trends affecting many countries around the world.

1. Weaker Spending from Key Markets

Spain’s tourism growth is heavily reliant on visitors from a few key countries. However, there has been a noticeable decline in the spending patterns of tourists from some of these nations. According to Exceltur, tourists from Germany, France, Turkey, and the United States have reduced their expenditures. This is particularly evident in high-end tourism and luxury segments, where spending on accommodation, dining, and leisure activities has dropped.

• German Tourists: Germany has traditionally been one of the top source markets for Spanish tourism. However, recent economic turbulence in Germany has resulted in lower spending by German tourists, who account for a significant share of Spain’s foreign visitors.
• French and Turkish Visitors: France and Turkey are also among Spain’s major tourist markets. The weakening economies and inflationary pressures in these countries have led to a reduction in the discretionary spending of travelers.

2. Rise in British, Chinese, and Polish Tourists

Despite the decline in spending from traditional European and U.S. tourists, there have been notable increases in visitors from other countries. British tourists, in particular, have become an increasingly important source of arrivals, contributing to an uptick in Spain’s tourism figures.

• British Tourists: The U.K. accounts for 26.5% of Spain’s total tourist arrivals, making it the largest source of international visitors. The increase in British travelers this year has helped offset some of the losses from other markets.
• Chinese and Polish Visitors: Spain has also seen an influx of tourists from China and Poland. The easing of travel restrictions in China, along with a recovery in outbound tourism, has resulted in more Chinese tourists visiting Spain. Poland, with its growing middle class and greater disposable income, has also become a key market for Spanish tourism.

Challenges and Opportunities in Spain’s Tourism Landscape

While the slowdown in Spain’s tourism sector presents a challenge, it also highlights the ongoing changes and opportunities within the broader global tourism landscape. Many countries are facing similar difficulties, and the key question is how they will adapt to these challenges.

Challenges Faced by Spain’s Tourism Industry

• Economic Slowdown: The broader economic conditions affecting major source markets are a key factor in the slowdown. The reduction in discretionary spending due to inflation, currency fluctuations, and economic uncertainty in Europe and the U.S. is impacting travel habits.
• Post-Pandemic Adjustments: Although global tourism has rebounded post-pandemic, the industry is still adjusting to new travel patterns, including shorter stays and more budget-conscious trips. This shift is particularly evident in Spain, where there has been a reduction in the average spend per visitor over the nine-month period in 2025.
• Increased Competition: Spain’s tourism sector faces growing competition from other destinations in Europe and beyond. Countries like Italy, Portugal, and Turkey are aggressively marketing their attractions to capture a larger share of the tourism pie.

Opportunities for Recovery

• Emerging Markets: Spain can capitalize on the increasing numbers of tourists from emerging markets like China and Poland. As these markets continue to grow, they present new opportunities for Spain to diversify its tourism offerings.
• Sustainability and Green Tourism: There is a growing demand for sustainable and eco-friendly tourism experiences. Spain’s focus on sustainability in tourism, through initiatives like responsible travel and eco-certifications, could help attract environmentally-conscious travelers.
• Luxury Tourism: Despite the general decline in tourism spending, there is still a strong demand for luxury travel experiences. Spain’s high-end resorts, Michelin-starred restaurants, and exclusive cultural experiences continue to draw affluent visitors, offering a potential avenue for recovery.

Spain’s Situation Mirrors Broader Global Tourism Trends

Spain’s tourism slowdown is not an isolated case. Several countries across Europe, Asia, and Latin America are facing similar challenges as global economic conditions continue to affect the travel industry. Here’s a closer look at how other major countries are navigating the slowdown in tourism:

Germany

• Projected Growth: Germany’s economy, after two consecutive years of recession, is expected to grow by just 0.2% in 2025. This marginal recovery is largely driven by domestic consumption, although exports are forecast to decline slightly.
• Tourism Impact: The weaker economic growth has affected spending in the tourism sector, with many tourists choosing more budget-friendly destinations. Germany’s tourism sector is bracing for a challenging 2025, despite efforts to boost domestic and European travel.

Italy

• Growth Outlook: Italy’s economy is expected to grow by only 0.5% in 2025, which is significantly lower than previous forecasts. Inflation, external tariffs, and rising costs are impacting domestic consumption, which in turn affects tourism.
• Tourism Decline: Despite Italy’s strong appeal as a cultural and culinary destination, the country is facing a slowdown in the number of visitors, particularly in the luxury and high-end segments.

United Kingdom

• Economic Challenges: The UK’s economy is expected to grow by just 1.2% in 2025, driven by high inflation and uncertain global trade policies. This is impacting the ability of British citizens to travel abroad, further dampening tourism revenue.
• Visitor Spending: With less disposable income, U.K. tourists are increasingly opting for shorter, more budget-conscious trips, affecting destinations like Spain that rely heavily on British visitors.

China

• Decelerating Growth: China’s economy, which was expected to grow at 4.8% in 2024, will see a decline in 2025 to 4.2%. The country continues to recover from the pandemic’s impact, but the property sector’s stress and high household savings are limiting domestic spending and outbound tourism.
• Travel Behavior: While Chinese tourists are increasingly traveling abroad, their spending has not yet returned to pre-pandemic levels, affecting Spain and other destinations.

Indonesia

• Economic Strain: Indonesia is facing significant financial strain as the government dips into central bank reserves to fund ambitious projects. This move, while intended to boost the economy, is raising concerns about the long-term sustainability of fiscal policies.
• Tourism Slowdown: Indonesia’s tourism sector, while benefiting from domestic growth, is feeling the effects of these economic pressures, leading to slower growth in international arrivals.

Brazil

• Slower Growth: Brazil, once a major growth story for Latin America, is seeing its tourism growth slow from 2.4% in 2025 to 2.2% in 2026. High inflation and political instability are affecting tourism spending and the overall economic outlook.
• Impact on Tourism: Although Brazil remains an attractive destination, factors such as high domestic inflation and political uncertainty are dampening foreign visitor interest.

Argentina

• Reduced Forecast: Argentina’s tourism growth forecast has been reduced to 4.6% in 2025, down from an initial estimate of 5.5%. Economic instability, including high inflation and political uncertainty, poses risks to sustained growth.
• Tourist Spending: The decline in visitor spending is evident, with many international tourists reconsidering Argentina as a high-cost destination.

Nigeria

• Economic Growth: Nigeria’s economy is projected to grow by 4.2% in 2025, driven by services and non-oil sectors. However, high food prices and poverty remain significant challenges.
• Tourism Outlook: Despite efforts to boost tourism, Nigeria faces significant challenges in attracting international visitors due to socio-economic conditions and high food inflation.

United States

• Declining International Arrivals and Spending: The U.S. is experiencing a sharp downturn in international tourism, with inbound visits projected to decline by 8.2% in 2025. Contributing factors include political tensions, economic conditions, and visa challenges:
  • Political Tensions: Former President Trump’s controversial policies have strained relations with key markets, especially Canada, leading to a 15% drop in Canadian tourism to the U.S.
  • Economic Factors: The strong U.S. dollar has made the U.S. more expensive for international tourists, deterring many from visiting.
  • Visa and Entry Issues: Stricter visa policies and lengthy processing times have created obstacles, particularly for visitors from Europe and Asia.
  • Financial Loss: The U.S. is projected to lose approximately $12.5 billion in international visitor spending by 2025 due to these factors.

Canada

• Domestic Growth Amid Falling International Visitors: Canada is seeing strong growth in domestic tourism while struggling with declining international arrivals:
  • Domestic Tourism Surge: Domestic tourism spending is expected to hit nearly $104 billion in 2025, reflecting a remarkable increase compared to previous years. This surge highlights the growing interest in local travel experiences.
  • Drop in International Visitors: International arrivals to Canada decreased by 6.6% in May 2025 compared to May 2024, marking the eighth consecutive month of decline. The drop in overseas visitors comes amid ongoing global economic challenges.
  • Impact of U.S. Relations: Strained relations with the United States, including political rhetoric and trade tensions, have resulted in a 23% decline in Canadian visits to the U.S.
  • Projected Economic Impact: Despite these challenges, Canada’s tourism sector is expected to contribute $183 billion to its economy in 2025, with the domestic market playing a critical role.

The slowdown in Spain’s tourism growth mirrors broader global trends, as many countries face economic challenges that affect the travel industry. While Spain continues to be a top destination for international tourists, its tourism growth is under pressure from changing spending patterns, global economic factors, and rising competition from other destinations. Nevertheless, there are opportunities for Spain to adapt, focusing on emerging markets, sustainability, and luxury tourism to reignite growth in the coming years.

Spain joins US, Canada, Brazil, Germany, the UK, and Italy, is facing a significant decline in tourism for nine consecutive months, driven by weakening global travel demand and economic uncertainties.

As the tourism landscape continues to evolve, it is essential for both industry stakeholders and governments to respond strategically to mitigate the impact of these economic shifts and ensure that tourism remains a significant contributor to global economies.