Falling Pound hits holiday lettings on the Costa Blanca

The economic crisis, and in particular the falling Pound, is taking its toll on holiday lettings on the Costa Blanca, reports the Spanish press.

According to the latest figures from Benidorm’s Association of Tourist Apartments, occupancy rates for holiday apartments barely reached 60% in November, down 6% on last year, and are forecast to be 55% at best in December. Just 3 years ago overbooking was a problem at this time of the year.

Holiday lettings on the Costa Blanca are highly dependent upon British clients, who are said to account for between 70% and 85% of bookings (and between 30% and 50% of hotel bookings). With the Pound heading towards parity with the Euro, British holiday makers are finding that Spain is no longer a cheap holiday destination.

Changes in demand and stronger competition from other destinations also help explain the falling occupancy rates on the Costa Blanca.

About Mark Stücklin

Mark Stücklin is a Barcelona-based Spanish property market analyst, and author of the 'Spanish Property Doctor' column in the Sunday Times (2005 - 2008). He can be reached by email on ms@spanishpropertyinsight.com. All articles published in good faith as a general guide but no substitute for professional advice. Please read the SPI disclaimer

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