Published on
September 20, 2025
Spain aims to reinvent Benidorm, a site of interest for the cool tourists, into an exclusive resort while maintaining it’s diversity offering something for the budget tourists. Bilbao is the epitome of what the towns city’s economy is expected to shift towards focusing biannual on the luxury retail sector. Local entrepreneurs support the idea of high-end secluding low-end tourist sites for the district to maintain a premium visitor attraction zone.
Benidorm, one of Spain’s most popular tourist destinations, is seeking a dramatic shift in its commercial landscape. Known for its lively beaches and an abundance of low-cost tourist shops, the city is now aiming to redefine itself and move towards a more upmarket image. Local businesses are expressing their concerns over the overwhelming presence of shops selling souvenirs, food, and drinks—products primarily geared toward short-term tourists. They argue that this trend has not only harmed the city’s image but has also made it difficult for traditional, locally owned businesses to compete.
A growing number of traders, represented by the Independent Association of Merchants of Benidorm (AICO), have voiced their frustrations about the increasing number of tourist-centric stores in the city. These businesses sell inexpensive goods such as trinkets, snacks, alcohol, and other items aimed at visitors who come for a short stay. The association believes this influx of tourist shops is diluting the quality of Benidorm’s retail sector, which is struggling to maintain its distinctive character amidst the rise of these generic stores.
In response, AICO is calling for stricter regulations to limit the number of licenses for tourist-focused businesses. Their proposal aims to establish a new law based on the principles of “necessity and proportionality,” ensuring that new commercial establishments in Benidorm are in line with the city’s long-term vision. By implementing such regulations, AICO hopes to maintain a balance between the needs of tourists and the interests of local businesses, preventing the over-saturation of the city with low-cost, tourist-oriented shops.
The inspiration for this shift comes from Bilbao, a city on Spain’s northern coast, renowned for its sophisticated retail environment. Bilbao’s “Golden Mile” is a prestigious shopping district known for its high-end boutiques and luxury shops. This area is a far cry from the image that Benidorm has cultivated over the years. Local business owners in Benidorm are eager to replicate this model, hoping to attract wealthier visitors and elevate the city’s retail offerings to match the upscale shopping experiences found in Bilbao.
The vision for Benidorm is to transform from a destination known for its cheap and cheerful tourist attractions into a more refined location that caters to a wealthier, more discerning clientele. By doing so, Benidorm hopes to create an environment where both locals and visitors can enjoy high-quality goods and services, and where small, independent shops can thrive alongside more upscale retail options.
The challenge, however, is not just about image—local merchants are facing real economic difficulties due to the growing number of tourist-oriented shops. Many of these stores, which tend to sell low-priced food, drink, and souvenirs, are often open late into the night and sometimes well into the early hours of the morning. They are typically located in high-rent areas of the city, making it difficult for traditional businesses to compete. The pressure on established shops is particularly intense as these tourist shops often undercut prices, drawing in visitors looking for quick and inexpensive items.
The financial strain on local businesses is reflected in AICO’s recent sales reports. In July, the association found that businesses were experiencing a significant drop in revenue, with figures showing a decline of between 11% and 30%. The situation worsened in August, with many shops reporting sales losses ranging from 31% to 50%. These declines are particularly worrying for small, family-owned businesses that rely on steady seasonal income to stay afloat throughout the year.
AICO’s members have called on the city council to reassess its approach to business licensing and introduce a more structured and controlled system for the opening of new shops. They argue that the current approach has resulted in an overabundance of stores that primarily cater to tourists, thereby overshadowing the needs of local businesses. The association is pushing for a system similar to the one implemented in Bilbao in 2015, known as the Local Ordinance on Hospitality Establishments. This ordinance is designed to regulate the types of businesses that can open in the city, ensuring that new establishments are aligned with the city’s broader economic goals and contribute to its long-term growth.
Despite submitting their proposal to Benidorm’s Councilor for Commerce, AICO has yet to receive a formal response. As a result, the association is now calling for the creation of a working group that would include municipal representatives, hotel owners, and business leaders. This group would be tasked with developing clear guidelines for the types of businesses that should be allowed to open in Benidorm, with a focus on those that are of general benefit to the local community.
The working group would also explore options for restricting the number of tourist shops in favor of businesses that align with Benidorm’s long-term vision of becoming a more upscale destination. This could include limiting the number of licenses granted for businesses selling low-cost souvenirs or products aimed solely at tourists. AICO believes that this approach would help protect the city’s image and ensure that it remains an attractive place for both visitors and residents.
Benidorm’s proposed transformation reflects broader trends in the Spanish tourism industry, where many cities are seeking to shift from mass tourism to more sustainable and upscale models. As other popular tourist destinations in Spain, such as Barcelona and Madrid, continue to evolve and diversify their offerings, Benidorm’s push for a more refined image could set a valuable precedent for other cities looking to balance the needs of tourists with the interests of local communities.
Whether Benidorm can successfully transform itself into a high-end tourist destination like Bilbao remains to be seen. However, the city’s growing concerns about the over-saturation of tourist shops and the economic struggles of local businesses make it clear that change is necessary. The outcome of these discussions will likely shape the future of Benidorm’s commercial landscape, and could ultimately determine the direction the city takes in the years ahead.
