Andorra, a small principality nestled between France and Spain in the Pyrenees mountains, is renowned for its scenic landscapes, skiing, and shopping opportunities. With just 468 km2 of surface, Andorra is a small tourist paradise that offers an infinity of activities to its visitors, both in winter to enjoy its ski resorts, and in summer to enjoy all its hiking and nature routes, without forgetting the wide range of commerce available. Its more than 250 accommodations make the hotel sector in Andorra one of the most popular and interesting in the country, given that the vast majority (73%) are managed by independent owners. Even so, it presents a series of challenges that it has to face in the coming years in order to continue being a reference destination among its competitors: its high seasonality, the oversupply of places and its homogeneity, and the lack of information in the sector. This report provides a comprehensive overview of the tourism and hotel market in Andorra, focusing on visitor demographics, economic impact, and sector challenges.