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International Visitor
Economy Report
Spain
Jian Jiao
Table of content
1. Introduction
2. Tourism versus Visitor Economy
2.1 Tourism
2.2 Visitor Economy
2.3 Relationship between Tourism and Visitor Economy
3. Strategic Importance of Visitor Economy
3.1 Direct Importance
3.2 Indirect Importance
3.3 Induced Importance
3.4 Strategic Importance
4. Consumer behavior and Visitor Economy
4.1 Motivation
4.2 Ethical Concern
5. Conclusion and Recommendations
6. References list
7. Appendices
1. Introduction
Spain, famous for its "sunshine and golden beaches," is the second most visited country
globally. Since the 21st century, Spanish tourism has developed rapidly and has become
one of the country's pillar industries. The development of tourism in Spain takes
innovation and sustainable development as the theme and attaches importance to
improving tourism quality. The tourism industry in Spain is flourishing and has
achieved remarkable economic results. Tourism accounted for 11.4 percent of Spain's
GROSS domestic product in 2019. Despite the epidemic's impact in the past two years,
the proportion of foreign visitors declined to some extent. Still, in 2021, Spain received
33.6 million foreign visitors, and the foreign exchange income of tourism reached
37.257 billion euros, continuing to maintain the status of the world's second-largest
visitor destination. In Spain, one out of every five employees works in tourism. Due to
the tragedy of Spanish history and the coexistence of diverse cultures, dark tourism has
also become a focus of tourism in recent years. This report will focus on analyzing the
Spanish visitor economy to understand its importance and impact on the Spanish
economy, legislation, and policy. The information will also be analyzed to identify the
strategic importance of the visitor economy in many aspects. Then it will examine the
visitor behavior and the ethical issues of dark tourism. Finally, the conclusions and
suggestions are given.
2. Tourism versus Visitor Economy
2.1 Tourism Economy
At present, there are many definitions and explanations of tourism economy in the
world. To put it simply, tourism economy is a social complex composed of a series of
related industries that provide physical products and services to meet the various needs
of tourists in the process of tourism (Gómez & Molina, 2011). Yrigoy (2021) believes
that "tourism is a variety of business activities carried out by many different
independent departments to meet the needs of tourists". From the actual consumption
activities of tourists in tourist destinations, tourism is indeed a huge and complicated
comprehensive, multiple, social complex industry or mixed industry (Chang, 2018). It
is a collection of social and economic departments and industries of tourist destinations
that are naturally organized to participate in and penetrate into tourism consumption
activities under the common goal of meeting the needs of tourists and obtaining
economic benefits.
2.2 Visitor Economy
Compared with tourism, the definition of tourist economy is broader. It includes all
economic activities of tourists, not only the economic activities and economic relations
involving food, housing, transportation, travel, shopping and entertainment between
tourists and operators of tourism industry in the process of tourism activities. Even,
anything that indirectly affects the tourism-related business in the whole tourism
process can be called tourist economy (Grimmer & Vorobjovas-Pinta, 2019).
2.3 Relationship between Tourism and Visitor Economy
Compared with tourist economy, tourism economy involves relatively narrow aspects.
The development of tourism economy only needs to consider tourism-related industries,
which involves relatively narrow fields. The tourist economy is designed to encompass
any other relevant industry, including the direct and indirect factors that attract tourists
to travel, with a broader scope, greater impact, and broader economic scale (Kim et al.,
2021). Therefore, compared with tourism economy, tourist economy is more worthy of
us to discuss.
3. Strategic Importance of Visitor Economy
3.1 Direct Importance
The economic impact of tourist economy refers to the economic impact of providing
direct services and products to tourists. As the second largest tourist destination in
Europe, Spain has many famous attractions. Since the beginning of the 21st century,
the proportion of Tourism in Spain's GDP has gradually increased. Tourism will account
for 13.8% of GDP in 2020 (López, 2021). In 2020, the number of Tourists in Spain
reached 33.6 million foreign visitors, and the foreign exchange income of tourism
reached 37.257 billion euros, and the trend is increasing (TRADING ECONOMICS,
2022). At the same time, because of Spain's own historical and religious complexity,
the economy of dark tourism is also growing. Tourism has become the real driving force
of economic development and the basic element of national wealth accumulation. The
development rate is generally faster than the growth rate of the national economy.
3.2 Indirect Importance
The indirect impact of tourist economy on economy is caused by multiplier effect,
which refers to the economic impact of tourist economy by promoting the development
of other sectors in the economic system. The most obvious is the employment impact.
Employment is a crucial issue in a country's economic development. The employment
problem of a country plays an important role in stabilizing its political situation and
improving its economic level. In recent years, tourism has made a great contribution to
the employment of Spain's working population. In 2020, approximately 26% of total
employment in Spain was directly or indirectly employed in tourism-related industries.
Horizontally, compared with other sectors of the economy, tourism's ability to create
jobs is increasing (Z, 2022). As a major component of the service industry, tourism is a
labor-intensive industry with multiple levels and easy access, which can accommodate
more labor than other sectors. Take the employment situation of various economic
sectors in Spain from 2010 to 2020 as an example. During this period, the number of
agricultural and industrial employment decreased significantly, while the number of
service employment increased significantly, and the proportion of tourism employment
in the total population kept rising. According to statistics, the number of people
employed in tourism stood at 2.32 million in 2020, and reached 5.74 million in 2020
(Gutiérrez-Domènech, 2020). It can be seen that tourism has become an effective way
to increase employment opportunities and solve employment problems in Spain,
indirectly affecting the Spanish economy.
3.3 Induced Importance
Induced impact refers to the increase in sales in a country as a result of the direct or
indirect expenditure of tourism income brought about by the tourist economy. They
spend their wages on local goods and services, influencing the job market, taxes and
other sectors of income such as wages. Due to the tourist economy, the cost of living
and real estate prices of Spanish residents have been affected to a certain extent, rising
by 13 percent and 26 percent respectively (Cladera, 2021). At the same time, due to the
substantial growth of tourist economy before 2020, Spain's national tax revenue will be
driven. The government receives some revenue from the tourism sector, such as income
tax, sales tax and purchase tax. Tax revenues rose by 28%, which in turn allowed the
government to use tax revenues to improve local economies and boost other industries.
3.4 Strategic Importance
4. Consumer behavior and Visitor Economy
4.1 Motivation
4.2 Ethical Concern
5. Conclusion and Recommendations
6. References list
Chang, S. (2018). Experience economy in the hospitality and tourism context.
Tourism Management Perspectives, 27, 83–90.
https://doi.org/10.1016/j.tmp.2018.05.001
Cladera, C. (2021, February 4). Spainâs tourism industry feeling the loss of British
visitors. EL PAÃS English Edition.
https://english.elpais.com/economy_and_business/2021-02-04/spains-tourism-
industry-feeling-the-loss-of-britishvisitors.html?msclkid=3f21b29fcf4c11ec9d62e6ee537abbff
Gómez, M., & Molina, A. (2011). Wine Tourism in Spain: Denomination of Origin
Effects on Brand Equity. International Journal of Tourism Research, 14(4),
353–368. https://doi.org/10.1002/jtr.868
Grimmer, L., & Vorobjovas-Pinta, O. (2019). From the sharing economy to the visitor
economy: the impact on small retailers. International Journal of Tourism
Cities, 6(1), 90–98. https://doi.org/10.1108/ijtc-01-2019-0015
Gutiérrez-Domènech, M. (2020, January 16). The economic impact of the tourism
industry in Spain. CaixaBank Research.
https://www.caixabankresearch.com/en/economic-impact-tourism-industryspain?msclkid=b347967dcf4b11ec876e5dcc85748145
Kim, Y. R., Liu, A., & Williams, A. M. (2021). Competitiveness in the visitor
economy: A systematic literature review. Tourism Economics,
135481662110344. https://doi.org/10.1177/13548166211034437
López, A. M. (2021, September 10). Tourism sector in Spain - statistics & facts.
Statista. https://www.statista.com/topics/3867/travel-and-tourism-inspain/?msclkid=5ae0c94bcf4b11eca02355c2b66c24fb
TRADING ECONOMICS. (2022). Spain Tourism Revenues - April 2022 Data 1993–2021 Historical - May Forecast - Chart.
https://tradingeconomics.com/spain/tourismrevenues?msclkid=5ae124bccf4b11eca71b12e2d8d87d66
Yrigoy, I. (2021). Strengthening the political economy of tourism: profits, rents and
finance. Tourism Geographies, 1–20.
https://doi.org/10.1080/14616688.2021.1894227
Z, E. (2022, February 10). Spain: Tourism and employment boom puts economy back
on track. Evans Z. https://think.ing.com/articles/tourism-employment-boomputs-spain-back-on-track/?msclkid=b3476cd4cf4b11ecb0629e5172ff0d77
7. Appendices
Two website maybe use
https://www.oecd-ilibrary.org/sites/8ed5145ben/index.html?itemId=/content/component/8ed5145b-en#section-d1e91181
https://www.statista.com/topics/3867/travel-and-tourism-in-spain/
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