Domestic tourism in Spain is shrinking during the peak summer season, while foreign visitors continue to fill the gaps and push prices higher. The National Institute of Statistics reported that overnight stays by residents dropped 1.1% in July compared to the same month in 2025. This decline contrasts sharply with the 1.1% increase in stays by international travelers. Despite the domestic pullback, total hotel occupancy in Spain rose slightly to 44.8 million nights, a growth of just 0.3%.
The retreat of local demand coincides with a sharp rise in hotel rates. The Hotel Price Index climbed 5.9% year-on-year in July, marking the highest increase since April 2025. This marks the 50th consecutive month of rising prices. The hike was most severe in the Valencian Community, where costs rose 9.8%. Only Castilla and León saw a negative trend, with prices falling 0.4%.
Higher rates are translating directly into more revenue. Hotels earned an average of 156.8 euros per occupied room in July, a 6.8% increase over the previous year. The revenue per available room also grew by 6.6% to reach 119.3 euros. Luxury accommodation commands the highest premiums, with five-star hotels averaging 339 euros per occupied room compared to 164.8 euros for four-star properties and 132.6 euros for three-star establishments.
The drop in domestic stays was not uniform across the country. Ciudad Real saw the sharpest decline, with resident visits falling more than 17%. Other regions with significant reductions included Guipúzcoa (15.6%), Ceuta (14.6%), Teruel (14.5%), and Álava (13%). Lérida also recorded a 10.2% decrease in nights booked by Spaniards.
Conversely, international tourism is maintaining the sector’s momentum. Foreign overnight stays increased by 1.1% in July, contributing to a cumulative growth of 1.8% in the first seven months of the year. Domestic stays rose just 0.8% during that same period. The Balearic Islands, Catalonia, and the Canary Islands remain the primary destinations for international visitors, while Andalusia, Catalonia, and the Valencian Community host the largest share of Spanish travelers.
While foreign arrivals are currently propping up the industry, the sustained rise in costs combined with a cooling domestic market creates a difficult environment for local travelers. If the trend of lower domestic demand continues without a corresponding rise in international numbers, the sector’s reliance on foreign currency could become a structural weakness rather than a temporary buffer.
Despite the financial boost from international guests, the market is facing challenges. The reliance on foreign travelers creates risks for the economy. Spain’s airline market is also evolving rapidly. Ryanair flights to Europe are becoming more competitive, offering travelers more options and potentially pressuring prices in the long run.