# Tourism revenues on the mend in Mediterranean countries
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-10-04
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Mediterranean countries see tourism rebound amid
Meta Description: Even with post-pandemic recovery still ongoing, Mediterranean states witness surge in tourist spending and tax revenues amid inflation and energy challenges.
URL: https://financedigest.com/tourism-revenues-on-the-mend-in-mediterranean-countrieshtml

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(Reuters) – Even if the number of visitors has still not quite recovered to pre-pandemic levels, Mediterranean countries are enjoying a much-needed boost as inflation and a strong sector recovery lift this year’s tourist spending and tax receipts higher.

The positive trend is one factor lending support to the heavily indebted economies of the region as they grapple with a spike in energy prices hitting both consumers and businesses.

Spain on Monday reported that it received nearly nine million passengers through its international airports in August – about 87% of those who arrived in the same month of 2019.

But higher prices meant tourist [spending stood at 11.26 billion euros](https://www.financedigest.com/europes-spend-on-energy-crisis-nears-800-billion-euros.html "Europe’s spend on energy crisis nears 800 billion euros") ($11.16 billion), nearly twice that recorded the same time last year and only fractionally down on August 2019.

Spain expects tourism revenues to hit 151 billion euros this year, 98% of [pre-pandemic levels](https://www.financedigest.com/fraport-sees-2023-passenger-traffic-at-80-90-of-pre-pandemic-levels.html "Fraport sees 2023 passenger traffic at 80-90% of pre-pandemic levels") when the tourism activity earned the country 154 billion euros, according to Exceltur, which groups major Spanish hotel chains, travel agents, tour operators and airlines.

The number of visitors to neighbouring Portugal beat pre-pandemic levels in July for the first [time since](https://www.financedigest.com/soccer-arsenal-reach-womens-champions-league-semis-for-first-time-since-2013.html "Soccer-Arsenal reach Women’s Champions League semis for first time since 2013") the end of most COVID-19 restrictions, the National Statistics Institute (INE) noted of 1.8 million foreign arrivals that month.

That recovery, plus the impact of inflation, contributed to a 21.6% [jump in tax revenues](https://www.financedigest.com/orpea-shares-jump-on-q4-revenue-and-cash-boost.html "Orpea shares jump on Q4 revenue and cash boost") to 5 billion euros.

Italy’s tourist industry lobby Assoturismo estimates that 49 million tourists spent at least one night in a [hotel during the June-August summer](https://www.financedigest.com/hotel-group-accor-continues-post-covid-recovery-after-a-gorgeous-summer.html "Hotel group Accor continues post-COVID recovery after a ‘gorgeous’ summer") period – still 6.9% lower than in 2019.

Yet separate [data from the tourist industry](https://www.financedigest.com/cbd-gummies-market-current-scenario-and-industry-growth-forecast-with-major-key-players-data-2030.html "CBD Gummies Market| Current Scenario and Industry Growth Forecast with Major Key Players data 2030") association Federturismo confirmed the same pattern as elsewhere: revenues from foreign tourists during the period almost returned to their pre-COVID, levels, with a decline of just 0.9% from 2019.

Greece’s finance ministry expects tourism revenues to top 18 [billion euros](https://www.financedigest.com/telecoms-group-orange-signs-sustainability-linked-refinancing-of-6-billion-euros-syndicated-credit-facility.html "Telecoms group Orange signs sustainability-linked refinancing of 6 billion euros syndicated credit facility") this year, beating their 2019 record. Net budget revenues for the first eight months of the year came in at 39 billion euros, some 5.6 billion [euros above target](https://www.financedigest.com/euro-zone-inflation-seen-just-above-ecbs-target-in-2025-poll-shows.html "Euro zone inflation seen just above ECB’s target in 2025, poll shows"), thanks to higher-than-expected tourism receipts and higher VAT revenues.

The conservative [government however has promised to spend the biggest part of the fiscal boon on energy](https://www.financedigest.com/european-governments-spend-half-a-trillion-euros-on-energy-crisis-report.html "European governments spend half a trillion euros on energy crisis – report") subsidies.

($1 = 1.0088 euros)

(Reporting by Sergio Goncalves in Lisbon and Corina Pons Rodriguez and Belen Carreno in Madrid; Lefteris Papadimas in Athens; Angelo Amante and Gavin Jones in Rome; writing by Mark John; editing by Mark Heinrich)


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