Costa del Sol businesses fear economic fallout from 'indefinite' Madrid rail closure

The picture speaks louder than words. María Zambrano main rail station in Malaga, virtually empty since the high-speed train accident near Cordoba, says much about the impact the suspension of the rail connection between Malaga and Madrid is having on the overall economy of the Costa del Sol. There is still no certainty about which day in February the service will restart, and in any case, traveller confidence has taken a severe knock since the tragedy.

Beyond the immense grief and effect on families, the accident has caused major disruption to two of the main engines of the Costa del Sol's economy: tourism, with a slowdown in Easter reservations from domestic tourists; and business, with diaries on hold and "concern" about the damage that the Malaga brand may suffer.

Malaga has promoted itself as a tourist and investment destination based, as one of its main strengths, on reliable and fast connections. And if those connections fail, Malaga loses appeal.

The at least three weeks during which Malaga will remain disconnected from Madrid by train are translating, for many companies, into cancelled meetings and visits, the search for less convenient or more expensive transport alternatives, such as plane, car or bus, and delays in plans. Disruptions that, nevertheless, have been partly mitigated by the plan B that emerged during the Covid pandemic: the video call.

Felipe Romera, director of Málaga TechPark, said, "It's a nuisance because the business relationship between Malaga and Madrid is very intense. Many people work between the two cities... several executives from the park live in Madrid."

Javier González de Lara, president of the head of the CEM Malaga province business owners' association, explained: "Besides the shock caused by the accident, there is great concern in the business community that this perception of gradual deterioration of high-speed rail in recent years will affect the image of Malaga as a safe, reliable destination, with infrastructure that meets increasingly high demands."

Future tourist reservations for the busy Easter season on the Costa del Sol have been hit, although there is some relief in that the stoppage came at a period in the year when mostly visitors are arriving at the airport from other countries rather than by land from Spain. The estimated percentage by which bookings by Spanish tourists in accommodation across Malaga province have fallen since the suspension of the rail service to Madrid is 15%.