Costa del Sol hotel prices continue to climb as British tourist numbers soar in July
Room rates rose by 12.2% in Malaga province as a whole, and Marbella leads the way in hotel profitability in Spain
"Hotels are expensive," is one of the most commonly heard phrases this summer. However, it appears the sector has not yet reached its peak and it is clear that, despite the continuous rise in prices, there has been an increase in the number of both Spanish and foreign guests. This is why experts believe that supply and demand will lead to further upward adjustments of prices. Proof of this is the increase they experienced in July, some 12.2% and an average price of a hotel room in Malaga province set at 189 euros, according to data from the Coyuntura Hotelera de Turismo Costa del Sol report released by Spain's INE national institute of statistics.
The study shows that despite the rise in prices, establishments have received more guests and increased overnight stays, both by Spaniards and foreigners - something they were unable to achieve in July 2024, even though prices were lower. The data shows that the province's hotels exceeded the barrier of 2.5 million nights booked last month, which represents 4% and almost 100,000 more stays than in the same period last year. It is also noteworthy that the biggest increase has been in domestic tourism, with almost 5% more overnight stays, compared to the 3.6% increase in bookings by international tourists. Arrivals at Costa del Sol hotels also grew by 2.9%, with a 4.3% increase in Spanish tourists and a 2% increase in foreign tourists.
The upward trend in hotel prices is not exclusive to the Costa del Sol, although it is true that the average increase in this destination is almost double the national average, which has experienced an increase of 6.5%, to 146 euros. It is also three points higher than the average increase in Andalucía, where the average cost of a room was 152 euros.
The report warns that the rise in July has been much higher than the average for the first seven months of the year, which stands at 6.3% to 126 euros.
These increases have also raised the profitability of establishments, measured by the average revenue per available room (RevPar), which has grown by almost 18% in the province in July, compared to 5.9% in Spain and 8.3% in Andalucía This has also been facilitated by the fact that visitors have stayed longer in the destination.
It is also important to highlight the employment generation capacity of the hotel sector, which has generated almost 8% more jobs, employing a total of 20,365 professionals.
2.5
million overnight stays booked in July in the province's hotels, which is 4% more than in the same period last year due to the recovery of the national market
In addition to the positive recovery of the domestic market, which had been in decline since last year, the number of British tourists also grew by 14.3% this past July, reaching 110,982. The UK is the leading international market and it keeps consolidating its position. The second largest source of foreign tourists for hotels was Ireland, with a rise of 3.9%, followed by the Netherlands, also with an upward trend of 3.2%. On the other hand, two of the major markets - France and Germany - were weaker in July, with drops of 11% and 6.9%, respectively. The country showing the greatest dynamism due to its exponential growth in Malaga hotels in July was Poland, with a 27.3% increase in visitors. On the flipside is Denmark, with a decrease of 29.5%.
Balance of the year
The upturn in July, which even the Aehcos association of hotel business owners of the Costa del Sol could not foresee, comes to improve a balance of the first seven months that continues to be marked by the negative sign in the overall number of tourists who have stayed in hotels in Malaga province, in overnight stays and average occupancy. The report warns that despite the good performance last month, the total number of guests from January to July was 3,569,834, some 4.2% fewer, and the number of booked stays was 12,508,938, 1.5% fewer than in the same period in 2024. The decline in domestic tourism was the trigger for this drop in the number of guests staying in hotels, with drops of 12.8% and 10% in travellers and overnight stays in the first seven months, respectively. Occupancy in this period was 60.18%, 1.41% less.
Marbella takes the lead in hotel profitability in Spain
The hotel sector in Marbella has experienced a great month of July. Its hotels have registered an increase of 17% of foreign visitors and have led the way in hotel profitability indicators in Spain. The data, provided by Marbella town hall and based on INE statistics, shows that hotels recorded an average occupancy rate of 78.5% and once again set record highs in the average daily rate (ADR) - 375.12 euros per night, bringing the revenue per available room (RevPAR) up to 296.25 euros. "Both records are the highest of all the tourist resorts in our country and consolidate the municipality's leadership in the high-end segment," said general director of tourism of Marbella town hall Laura De Arce. She also explains that the town's hotels received 85,697 guests in July, almost 12% more than in the same period in 2024. They generated more than 325,000 overnight stays, an increase of 8.79% compared to July last year and well above the average increase experienced in the province as a whole. "A stable and high performance for the high season, especially if we take into account that this year we have 20 more hotel establishments, which shows the strength of the sector and its capacity to absorb demand," De Arce said, who highlights that it is the income left by tourists, not the number of visitors, that is more important to consider. The release of the August figures will reveal the full picture of this year's high season in the town. However, what De Arce already knows is that Marbella is "a benchmark destination at national and international level, with a quality offer and a model that is committed to tourism excellence".
