Costa del Sol tourism revenue hits record €21.8bn despite dip in hotel stays
The province’s tourism chief has hailed a shift toward "quality over quantity," as rising visitor spending offsets a cooling in traditional occupancy rates
Despite fewer beds booked, tourists spent more on their visits to the Costa del Sol in 2025 to reach a record 21.8 billion euros spent.
However, the good figures from the province’s 2025 annual report were tempered by a "strictly critical" address from Francisco Salado, President of Turismo Costa del Sol, who took aim at central government failings over infrastructure and border delays.
Opening his address on the heels of a morning of traffic chaos, Salado called for immediate intervention on the eastern section of the A-7 motorway.
Following a breakdown that caused widespread gridlock between Rincón de la Victoria and Malaga city, the President did not mince words. "The Three Wise Men gifted me a caravan trail of vehicles today," Salado remarked. "We have once again suffered long queues on the motorway. Action is urgently needed."
The President also turned his attention to Malaga Airport, warning that new passenger-screening requirements for non-Schengen travellers are creating a bottleneck for the region's most vital market.
With British arrivals growing by 7.5% in 2025 - accounting for nearly 30% of all international visitors - Salado urged the Ministry of the Interior to increase staffing levels.
"The queues at peak times create a very bad image," he warned. "We are asking the airport to put pressure on the Ministry to regulate passenger flow."
This was just the first of several points he raised regarding an issue that is causing concern in the sector, given that almost 30% of international visitors are from the UK.
Neither did Salado shy away from presenting the negative results revealed in the statistics for hotel, apartment and rural accommodation and also campsites. He reported a 1.1% decrease in visitor arrivals, totalling 7.9 million people, and a 1.4% drop in the number of overnight stays, which reached 30 million nights. Nor have they managed to improve the average occupancy rate, which stands at 75.4%, 1.8% lower than in 2024.
Salado downplayed these declines, attributing them to a 6.5% surge in the supply of beds - now totalling over 700,000 - and a shift in traveller behaviour. Many frequent visitors have transitioned from tourists to residents, buying their own properties in the province.
"There is no need to fear that occupancy is not at previous levels," Salado insisted. "The market is not saturated. Our challenge is to focus on quality rather than quantity, and the 2025 results confirm this strategy is working. Investors remain confident in a clientele that is willing to pay more."
21.811
million euros is the amount of money generated by tourism in the province, 2.8% more than in 2024.
He further stressed that the overall figures show that 2025 was a record year for tourism, with 14.6 million tourists visiting the province, a 1.19% increase and 21.811 million euros in revenue, up 2.8%. "The data shows a more sustained growth in visitors and greater dynamism in the economic impact of this activity," he stated, highlighting the strong 10% increase in job creation, reaching a total of 152,162 workers in the province's main industry.
"Tourism continues to bring us much joy," he added, predicting that 2026 is starting with good expectations given the growth in airline seats offered for flights in the first four months of the year - 4.4 million seats, to be exact, 6.2% more than in 2025. However, he warned of the need for prudence in the face of international instability.
Even so, he gave assurances that the tourism industry in the province expects to make progress in improving connectivity with Asia and the United States. "We are awaiting the launch of the Shanghai flight, hoping for good news on the agreements to establish connections with Atlanta or Miami and for the air route from Malaga to New York to be extended year-round."
Salado restated the core message, that "we are working in the right direction, prioritising quality over quantity. We have an unbeatable offer. The Costa del Sol is a very safe destination, an important asset in the face of global uncertainty. That is why we remain optimistic. 2026 is a promising year."
