Benidorm is packed this summer, but the familiar routine of dining out is changing as inflation hits tourist wallets. The influx of visitors has not translated into the expected boom for local restaurants, which are seeing sales drop by 5% to 7% compared to previous years.
The battle between restaurants and grocery stores
The economic pressure is forcing a shift in behavior. According to Javier del Castillo, the president of the Association of Restaurants of Benidorm and Comarca (Abreca), the purchasing power of visitors has dropped significantly. He notes that paying for hotel rooms or apartment rentals consumes a large portion of the budget, leaving less money for leisure activities.
“The purchasing power of people has dropped a lot,” Del Castillo said. “Only by paying for the hotel room or renting the apartment, a good part of the money for the holidays has already gone, so when it comes to consuming, there is less joy.”
This financial strain is benefiting supermarkets instead of dining establishments. Travelers, particularly those staying in apartments, are opting to buy food and bring it back to their lodgings rather than eating out.
“Those who go to apartments and flats prefer to buy food and take it to the room,” Del Castillo explained. He also admits that the restaurant sector has had no choice but to raise prices due to the current inflationary environment.
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Abreca’s data confirms that bars and restaurants are suffering a decline, while supermarkets are seeing the opposite trend due to this change in habits. The shift suggests that while the city remains full, the spending is moving from service industries to retail.
Domestic and international travelers adjust spending
The decline is not uniform across the region. Mª del Mar Valera, president of the Provincial Association of Hospitality Entrepreneurs of Alicante (APEHA), observes that coastal areas are feeling the pinch more than inland locations.
“This year, just like last year, the drop in consumption in restaurants has been felt a lot, especially in coastal areas because in the interior they are doing very well this summer,” Valera stated.
The president points out that both national and international tourism are adjusting their spending. Foreign visitors, in particular, are reportedly choosing the cheapest items on restaurant menus rather than ordering full meals.
While the city faces these challenges, the volume of tourists remains high. The combination of full hotels and reduced dining revenue creates a complex economic picture for the hospitality sector this season. It remains to be seen how long these spending habits will persist as the summer progresses and prices continue to adjust.