
Report
Galicia Hospitality Market Overview
Market Recovery and Performance:
Galicia, a region in northwest Spain, has seen significant growth and development in its hospitality sector over the past decade.
With a GDP of 62,570 M €, Galicia is in the top six regions in Spain and the growth and consolidation of the local business community have improved its economic position nationwide.
Tourism in Galicia grew between 2013 and 2019, precipitating an improvement in hotel profitability. The ADR (Average Daily Rate) increased by 4.34% between the years 2017-19. RevPar and ADR are heavily seasonal, concentrated in the summer months. There are a diversity and disparity according to the style and levels of the hotels, with the highest prices concentrating in four tourist centres: Vigo, Sanxenxo, Santiago de Compostela and A Coruña.
In the first half of 2019, Galicia tourism demand grew the most: 7.7% compared to 1.2% in the rest of Spain, demonstrating a shift towards longer seasons, with travellers also coming in the middle and low seasons.
Galicia is now a prominent destination within Spain, offering a mix of traditional and modern hospitality options.
Economic Context
- GDP: Galicia’s GDP stands at €62.57 billion, ranking it among the top six regions in Spain.
- Key Industries: The automotive industry (PSA-Peugeot in Vigo), textile sector (Inditex in Arteixo), and agri-food sector (Estrella Galicia in A Coruña) are crucial to the local economy. The increased activity in these sectors has positively impacted the hospitality industry.
Tourism and Connectivity
- Air Travel: The region’s three airports—Peinador, Lavacolla, and Alvedro—handled a record 5.26 million passengers in 2019.
- Rail and Road: Infrastructure improvements have reduced travel times for medium-distance rail connections, with the High-Speed Train line (AVE) set to open in 2022. The road network connects major Galician cities with Portugal, northern Spain, and Madrid via motorways AP9, A52, A6, A8, and A28.
The Camino de Santiago
The Camino de Santiago, a historic pilgrimage route, significantly boosts tourism in Galicia. Efforts by local authorities to promote and improve this route aim to:
- Increase national and international tourist numbers.
- Raise average tourist spending.
- Reduce seasonality.
In 2019, the route attracted 347,578 pilgrims, a 7% increase from 2018. The popularity is expected to continue, particularly during the Xacobeo years (2021 and 2027).
Market Performance
- Tourism Growth: From 2013 to 2019, tourism demand in Galicia grew steadily, improving hotel profitability.
- Occupancy and Rates:
- RevPAR: Increased by 10.34% from €23.19 in 2017 to €25.59 in 2019.
- ADR: Rose by 4.34% from €55.03 in 2017 to €57.42 in 2019.
- Seasonality: Occupancy and rates are highly seasonal, peaking in the summer months.
Accommodation Overview
Galicia offers a mix of traditional and modern accommodation options:
- Bed Supply: Concentrated in 2-star (26.35%) and 4-star (29.26%) categories.
- Hotel Developments: Growth in both national and international brands, including Barceló, Marriott, Relais & Chateaux, Accor, and Hilton. Future openings and refurbishments are planned, supported by the TUR Reform program and the MAT Plan.
Emerging Trends
- Glamping: This high-end camping option integrates local environments and sustainability, catering to a high/medium-level tourist profile. Examples include Las Cabañitas del Bosque in A Coruña and Glamping Muiñeira in O Grove.
- Cultural Heritage: Historical buildings like Pazos and Paradores de Turismo offer unique accommodation experiences. Galicia has 12 Paradores, attracting premium guests.
- Health & Wellness: Galicia is known for its thermal and mineral-medicinal tourism, with 21 spas and over 3,000 hotel beds. Examples include Hotel Balneario de Mondariz and Talaso Atlántico.
New Supply and Forecast
- New Developments: DoubleTree by Hilton (58 rooms) and NOA Boutique Hotel (32 rooms) in A Coruña, and Parador de Turismo de Muxía.
- Future Outlook: The Xacobeo years and new international air routes will attract more tourists. The trend towards authentic, sustainable experiences close to nature presents significant growth potential.
Download the report
For detailed charts, graphs, and further analysis, download the full report here