Changing patterns in tourism - Costa del Sol

How does the area fit the Product life cycle?

Stage 1: Traditional Society (1960's)

In 1960, fewer than ½ a million British tourists visited Spain. Local employment was mainly focused on farming and fishing. There was limited accommodation and very few hotels. Roads were poor and there were very few amenities. The environment was clean with relatively little pollution. It was also quiet with little visual pollution

Stage 2: Take off and development (1970's)

Tourism became Spain's leading industry. By 1971, the number of British tourists had risen to 3 million. Tastes had changed and with the introduction of package holidays and cheaper air travel, it was easy to holiday in Spain. People were attracted by hot summers with temperatures reaching 30 degrees Celsius in Malaga, long stretches of sandy beaches, Sierra Nevada Mountains, nightlife, cheap accommodation and variety of activities (water parks, golf courses etc). Local employment created in construction, hotels and shops. There was a decline in farming and fishing. Large hotels were built using concrete. Congestion began to be a problem in towns. Farmland was built upon and wildlife frightened away. Beaches became less clean.

Stage 3: Peak Production (1980's)

By 1988 the number reached over 7.5 million. The total number of visits by all tourists was 54 million. The carrying capacity of the area had been reached. Tourism accounted for 70% of employment in some areas. In Majorca, tourism accounted for 60% of the GNP (85% including the construction industry). Mountains became hidden behind hotels and the sea became polluted by sewage. Vandalism and muggings increased as did the noise from traffic and nightlife. The number of British tourists visiting Spain dropped by 4%.

Stage 4: Stagnation (1990's)

Tourist numbers from the UK dropped to 7 million. Unemployment increased as tourism declined by 30%. Region obtained reputation of attracting ‘lager louts' which dissuaded families from travelling to Spain. Hotels looked dirty and run down. Bars and cafes closed down due to lack of business and increased competition for fewer visitors. Increased abstraction of water from aquifers severely altered the ecology of wildlife habitats such as the Cota Donana National Park. 53% of the species of mammals are said to be under threat. Lack of investment in infrastructure, environmental deterioration and polluted beaches compounded the problems. Tourists looked elsewhere such as Florida, the Caribbean and the Far East on new, cheaper charter flights.

Stage 5: Rejuvenation or Decline? (2000+)

Spanish government reduced VAT to 6% in luxury hotels to try to maintain cheap holidays. Stricter controls introduced to try to clean up the beaches. To tempt constructors and hoteliers to upgrade and relocate supply away from the coast the Ministry of Tourism have drawn up facilities for tax credit and a 15 year extension to borrowing. A ‘Green Spain' promotional campaign has been introduced. New laws introduced to ban any new building any nearer than 100 metres from the shore. The Balearic government has announced a budget of £65 million to improve public and tourist amenities such as waste disposal. Benidorm has pledged £317 million over 5 years to improve facilities. Only new 4 or 5 star developments will get the go ahead for new development. The government also wants to spread the load and develop tourism outside the coastal areas. However, some hotels will close if the owners cannot afford to redevelopment costs. This may have a negative impact if they are left boarded up and empty.

Indications are good though. The Spanish Tourist Office in London, reports a 60 to 70% increase in enquiries about inland Spain. However, the traditional resorts will undoubtedly see a rise in unemployment levels and a loss of revenue during this transition phase.

D.Drake 2009