MADRID AIMS TO BECOME THE CAPITAL OF HIGH-IMPACT INTERNATIONAL TOURISM

Madrid’s consolidation as a top European destination is undeniable: music festivals, sports events, culture, gastronomy, nightlife…

Today, two types of tourism coexist: high-net-worth travelers and middle-class tourists, for whom Madrid still offers more competitive prices than other major European cities.

Can both types of tourism coexist, or will one eventually prevail? Scanning the present to anticipate future trends is part of the Business Intelligence that GAT HOSPITALITY offers its clients.

Let’s analyze the key factors:

On one hand, Madrid City Council launched the “Madrid Unique Destination” High-Impact Product Club at the end of 2024—a public-private platform aimed at promoting premium tourism.

On the other hand, the request by the Ministry of Social Rights, Consumer Affairs and the 2030 Agenda—backed by the High Court of Justice of Madrid—to remove 65,000 illegal tourist apartment listings from Airbnb for violating licensing regulations will very likely lead to higher hotel rates, as the sector takes advantage of its main competitor’s setback.

If these rates do increase, the national tourist will be most affected, since their average daily spend of €150–180 is significantly lower than that of international tourists, who spend €300–320 per day.

In 2024, Madrid received over 11 million international tourists (a 56% increase compared to 2023), accounting for more than 60% of total overnight stays. Their average spending per trip rose from €1,300 to €1,800 in just one year.

Moreover, the average stay has lengthened, thanks to business tourism, which has a direct economic impact of €2.5 billion and an indirect impact of nearly €5.5 billion. Here too, international visitors outspend locals, with an average spend of €1,600, nearly double that of Spanish business travelers.

If we add to this the growing number of five-star hotels opening in the capital—now representing 17% of Madrid’s hotel supply, with more than 70% foreign guests—it’s clear that Madrid is welcoming high-spending international tourists with open arms… and making it increasingly difficult for mid-range domestic tourists.

This presents major business opportunities in Madrid, and at GAT HOSPITALITY we remain alert to market trends so we can turn them into high-value projects. Would you like us to tell you more?

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