Market Report: Galicia Market Overview
By Jesús Rodríguez on March 2, 2020
The region has diverse hospitality products, recently expanded to include more international brands, strong destination marketing support and the local business community has invested heavily in infrastructure. These combined efforts mean that Galacia is now a significant destination within Spain.
Over the last decade, these initiatives have had a direct impact on tourism, positively affecting the competitiveness and profitability of the hotel industry. 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 has historically offered culture, gastronomy, nature and the Camino de Santiago. Today, it stands out for having more traditional products (hostels, camping hostels and spas) combined with newer types of accommodation such as independent hotels, international chains, luxury and other innovative concepts. Hotel development growth, with a dozen future openings, will increase supply, a figure whose growth has remained constant at 5.3% since 2009. At the same time, refurbishment is planned for 625 establishments, supported by the Public Administration within the TUR Reform program and the MAT Plan, to promote tourism linked to quality and excellence.