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The ESADE Business School study on ‘Social and Economic Impact of the Vacation Rentals Industry in Spain’

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14% of tourists who visited last year Barcelona, Madrid, San Sebastian or Granada and the areas of Mallorca and Calpe chose holiday rentals. Of these, 79% were foreign tourists. • Holiday rentals properties in Spain of these six cities and coastal areas welcomed 3.7 million tourists. • 96% of foreign tourist chose holiday rentals for its good location, 91% for homely and 88% for reasonably price.
More than 27 million tourists visited in 2014 the Spanish cities of Barcelona, Madrid, the coastal areas of Mallorca and Calpe (Alicante) and cultural destinations of San Sebastian and Granada, six areas that concentrate almost 50% of tourism in Spain. Of these 27 million tourist, 3.7 million chose to stay in holiday rentals, a form of accommodation that is becoming more popular among tourists visiting Spain, according to the study “Impact of holiday rentals on the Spanish economy”, carried out by ESADE Business School, in collaboration with Salvetti & Llombart and commissioned by the Spanish Federation of Housing and Tourist Apartments (Fevitur). The research reflects the current situation in the holiday rentals industry and assesses its impact on the Spanish tourist industry and on the finances of families who benefit directly or indirectly from this kind of accommodation.

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The ESADE Business School study on ‘Social and Economic Impact of the Vacation Rentals Industry in Spain’

  1. 1. PRESS  RELEASE       The  ESADE  Business  School  study  on  ‘Social  and  Economic  Impact  of  the  Vacation  Rentals  Industry  in  Spain’   14%  of  tourists  visiting  Spain  choose  holiday  rentals  with   an  economic  impact  close  to  €  2.700  million     • 14%  of  tourists  who  visited  last  year  Barcelona,  Madrid,  San  Sebastian  or   Granada  and  the  areas  of  Mallorca  and  Calpe  chose  holiday  rentals.  Of  these,   79%  were  foreign  tourists.     • Holiday  rentals  properties  in  Spain  of  these  six  cities  and  coastal  areas   welcomed  3.7  million  tourists.     • 96%  of  foreign  tourist  chose  holiday  rentals  for  its  good  location,  91%  for   homely  and  88%  for  reasonably  price.       Barcelona  July  23,  2015.  -­‐  More  than  27  million  tourists  visited  in  2014  the   Spanish  cities  of  Barcelona,  Madrid,  the  coastal  areas  of  Mallorca  and  Calpe   (Alicante)  and  cultural  destinations  of  San  Sebastian  and  Granada,  six  areas  that   concentrate  almost  50%  of  tourism  in  Spain.  Of  these  27  million  tourist,  3.7   million  chose  to  stay  in  holiday  rentals,  a  form  of  accommodation  that  is   becoming  more  popular  among  tourists  visiting  Spain,  according  to  the  study   “Impact  of  holiday  rentals  on  the  Spanish  economy”,  carried  out  by  ESADE  Business   School,  in  collaboration  with  Salvetti  &  Llombart  and  commissioned  by  the   Spanish  Federation  of  Housing  and  Tourist  Apartments  (Fevitur).  The   research  reflects  the  current  situation  in  the  holiday  rentals  industry  and  assesses   its  impact  on  the  Spanish  tourist  industry  and  on  the  finances  of  families  who   benefit  directly  or  indirectly  from  this  kind  of  accommodation.     In  the  view  of  Gerard  Costa,  professor  of  Marketing  Management  Department  at   ESADE  Business  School  in  Barcelona  and  author  of  the  study,  “we  were  able  to   verify  for  the  first  time  in  Spain  that  the  holiday  rentals  have  been  the  vanguard  of   a  new  form  of  tourism  that  is  becoming  a  great  global  trend:  foreign  families   seeking  a  convenient  and  comfortable  house,  consuming  in  local  commerce,  who   value  the  deal  with  the  owner  as  well  as  the  fact  that  the  money  goes  to  an   individual  rather  than  a  corporate  chain,  and  recommend  the  experience”.   According  to  data  from  the  official  National  Statistics  Institute  (INE),  tourists  who   opted  for  a  holiday  rental  property  in  Spain  –not  only  in  the  six  areas  where  it   concentrates  the  study-­‐  increased  by  17.1%  in  2014,  exceeding  7.4  million   users,  a  figure  that  indicates  that  this  industry  contributed  more  than  €5.400   million  to  the  Spanish  economy.     About  79%  of  the  3.7  million  people  who  visited  the  six  cities  or  areas  of   Spain  aforementioned  were  foreign  tourists.  They  chose  to  stay  in  vacation   homes  for  three  reasons:  its  good  location  (96%),  be  homely  (91%)  and  to  have  a  
  2. 2. reasonably  priced  (88%).  Most  foreign  tourists  who  chose  the  holiday  homes  have   an  average  age  of  46.8  years  (83%  are  between  35  and  over  54  years)  and  they   travel  in  family  (83%).       The  average  number  of  days  the  tourists  have  spent  in  these  accommodations  was   7.4  nights  (at  least  3  nights),  and  9  in  10  said  that  the  holiday  homes  are  usual   accommodation  for  their  stays  in  Spain.  The  84%  of  them  prefer   accommodation  with  a  kitchen  or  an  access  to  a  kitchen,  67%  like  to  feel  at  home   when  they  travel  and  62%  think  the  kind  of  accommodation  is  very  important   when  choosing  a  destination.     The  impact  on  the  Spanish  economy     The  impact  of  this  type  of  tourism  contributed  almost  €2.7  billion  to  the   Spanish  economy  in  2014.  As  reflected  in  the  study,  the  average  expenditure  was   €726  per  tourist,  of  which  €249  was  spent  in  accommodation  and  €477  in   activities,  transportation  or  meals.  This  new  profile  of  tourism  has  a  direct  impact   on  business  around  the  area  where  the  holiday  rental  is  located.  So  then,   convenience  stores,  markets,  local  services  and  other  local  businesses  received   32%  of  the  expenditure  per  tourist.     Holiday  rentals  make  a  significant  contribution  to  Spanish  family  finances.  As   noted  in  the  report,  the  owners  have  a  very  specific  profile:  smallholders  who  only   have  a  housing  for  this  kind  of  use  and  which  is  an  important  source  of   supplementary  income  for  the  family  finances.  Thus,  for  92%  of  the  owners,   renting  means  a  help  to  the  family  economy;  to  65%  it  is  a  good  option  for  an  extra   income;  and  58%  helps  cover  the  cost  of  the  property.     The  holiday  rentals  have  a  direct  impact  on  job  creation  too:  46%  of  the  owners   employ  any  person  for  the  housekeeping  and  47%  offer  a  permanent  cleaning   service.  Moreover,  3  out  of  4  owners  renovated  the  house  after  renting  and  85%   buy  special  furniture  to  rent  it.  In  addition,  95%  of  owners  confirm  that  the  holiday   rentals  boost  their  city's  economy     Despite  the  growth  of  this  holiday  option  in  Spain,  73%  of  owners  believe  that  the   law  does  not  make  renting  out  the  property  as  a  holiday  rental  an  easy   option,  and  to  64%  the  law  can  deter  people  from  staying  in  a  holiday  rental.  Even   so,  in  51%  of  cases  the  property  is  registered  as  a  holiday  property,  68%  of   the  owners  always  sign  a  rental  agreement  with  guests  and  80%  of  them  inform   guests  of  the  rules  and  regulation  for  the  property  or  the  building  housing  the   property.  According  to  Pablo  Zubicaray,  president  of  Fevitur,  “both   policymakers  and  the  hotel  industry  will  understand  that  holiday  rentals  industry   is  here  to  stay.  It  is  true  that  we  have  to  create  rules  that  can  be  met,  and  we  have   to  pay  taxes  too,  but  holiday  rentals  are  already  part  of  the  tourist  accommodation   map  in  Spain”.     Websites  for  holiday  rental  are  the  main  form  of  monitoring  and  management  the   properties:  87%  of  tourists  chose  and  managed  rental  housing  over  the  Internet  
  3. 3. and  13%  did  so  through  the  social  media.  Of  total  rental  operations,  98%  booked   online,  primarily  through  rental  websites  specialists.     (Summary  of  study  on  attachment)   Press  contact:   Marta  Sardà   Mobile  +34  607  213  484