Spain tourism warning over 'vicious cycle' as huge number of bars shut down in hotspots


Spain has been warned it’s facing a dip in tourists’ interest after the country has experienced the closure of thousands of bars, coffee shops and taverns.

The Spanish National Institute of Statistics (INE) said between 2021 and early 2023 the country saw a fall in the number of existing bars by 17 percent.

As of January 1 last year, Spain counted 168,065 registered bars – which according to the INE definition include traditional bars, taverns, cocktail bars and coffee shops.

A whopping 7,825 bar venues shut down in 2022 alone – marking a 4.5 percent decrease on the previous year’s total.

Among the reasons provided for the closure of bars were the retirement of the previous owners and a lack of interest in their younger relatives in taking over the business, rising costs and the coronavirus pandemic.

The Madrid area saw the highest number of bar closures, 5,900, between 2021 and 2023 – a 26.3 percent dip.

Also hugely affected by the closures were Castilla y Leon and the Galicia regions – down 24 percent and 23.5 percent respectively.

The Spanish regions much beloved by British tourists and expats, Andalusia and the Canary Islands, also saw the number of bars fall quite significantly – by 10.1 percent and 10.2 percent respectively.

These closures could drag the country into a “vicious cycle”, according to a travel expert.

David Doughty, CEO of private jet charter company Admiral Jet, told Express.co.uk: “Considering how much Spain has historically relied on its bars and taverns to draw in Britons and other Europeans, the country is bound to experience some sort of dip in interest.

“This has the potential to spiral into a vicious cycle, with the lack of bars dissuading potential holidaymakers, which results in a loss for the Spanish economy, placing even more of a strain on the bars that do still exist. This will of course lead to more closures.

“With so many people around the world tightening their belts, the travel industry was always going to suffer somewhat, but this is of very little reassurance to those who rely on business from foreign visitors.”

One way for Spain to mitigate any negative impact these bar closures could have on tourism is by “pivoting towards a more family-oriented approach”, advertising the country as a location suitable for young children and parents, who are less likely to be on the lookout for bars, the expert added.

This approach has already been embraced by a number of holiday hotspots in Spain. Magaluf, once known as a party resort, is now undergoing a millions-worth rebranding to attract British families rather than young party-goers.

Looking at the number of bars in 2023, hospitality representative Hosteleria de España said the market is now marked by a “stability in demand, the evolution of household disposable income and the financial behaviour of companies”.

The turnover for this year is predicted to rise by four percent, the organisation said.

Leave a Reply

Your email address will not be published.