Property Investment Research - Spanish Tourism
Published on 6th August 2008 by Don Ross
Spanish Tourism Still Buoyant
For investors with properties in Spain the press and media would have us believe that there is nothing but doom and gloom.
Whilst the effects of the credit crunch have been noticeable to say the least, property investment is a medium to long term proposition and the underlying issues are as, if not more, important than temporary situations; no matter how dramatic.
Financial markets undoubtedly have their ups and downs, and there is no doubt that we are currently experiencing a down, however, when the current situation is resolved what do we have in Spain?
British tourists are still the largest proportion of the Spanish holiday market; by a long way. We represented 27.5% of visitors in the first half of this year – the next nearest were the Germans with 17.9% and the French with 13.8%. Further, 26.6 million people visited Spain in the first half of this year, an increase of 2.6% over the same period last year.
Why is this important? Because the underlying value of investment property is in no small way influenced by the holiday market and, if this remains buoyant, the increase in the value of property will continue. A demanding market needs to be served.
Whilst this does not greatly mitigate the effects of the credit crunch, these will pass in time as all other financial market swings have done in the past, the future value of property in Spain, or indeed any other holiday destination, will continue to grow as long as tourism continues to grow. These latest figures from the Spanish Institute of Tourism confirm that there is still a growing market out there and that the long term view is still good.
Don Ross
General Manager of Ward & Co, has a vast range of experience in both financial services and property development. As an international speaker he has provided the inspiration that has led to wealth creation around the globe.
