Though Madrid is the capital of Spain and its largest city, Barcelona is far more popular with foreign tourists. Each year, about five million people come to the city, which makes it the fourth most visited metropolis in Europe, after London, Paris and Rome.
Why is Barcelona so popular? There are many reasons. But in this article we will focus on the decline of the travel industry in Spain. As you may know, the global recession hit Spain like a tonne of bricks. The impact was most acutely felt in the real estate market, where home prices experienced a thirty percent decline.
For the travel industry, the outlook was nearly as bad. The UK economy sank like a stone. This is important because tourists from the UK are Spain's most frequent visitors. How about holiday apartments in Barcelona?
The decline of the travel industry in Spain has hit apartment rentals especially hard. Because they do not have the money to compete with the hotels, most owners and agencies are unable to secure enough clients. Since the recession, the industry has declined by more than a quarter.
As they wait for the industry to return, most owners are offering competitive deals to potential clients on the internet. Of course, they are not big enough to offer attractive package deals that include airfares and rental vehicles, which puts them at a competitive disadvantage.