A new cloud hangs over the Costa del Sol, amongst other places, as two major northern European markets, Germany and the UK, introduce austerity measures to combat the continuing financial crisis. The UK and Germany account for around 40% of hotel bookings on the Costa del Sol.
It had been highly anticipated that 2010 would be slightly better than 2009 as far as the tourism industry on the Costa del Sol was concerned, but there is now an air of uncertainty.
The continuing weak euro will, perhaps, encourage a few more British tourists to take their holiday along the Costa del Sol, but nothing is certain. People will still, naturally, take a holiday, but it could well be a shorter one than normal and with a lower spending budget.
Predictions for a recovery in the tourism industry were originally based on three critera:
A weak euro to attract British tourists – The euro remains weak at the moment, but this may well be counteracted by austerity measures in the UK.
Stable or increased domestic tourism – Pension freezes, salary cuts and other austerity measures could affect the domestic market.
The recovery of the German economy – The German economy has not recocvered according to plan.
It is very much a question of ‘wait and see’.