- Summer 2021 brought back part of European and domestic tourism to Barcelona, an improvement on the previous year.
- Long-distance and business visitors remained far from pre-pandemic levels.
- The recovery was uneven: it pays to diversify the customer base and review the model, without hasty decisions.
Summer 2021 brought back part of European and domestic tourism to Barcelona, an improvement on the previous year. Streets, terraces and accommodation regained a liveliness that had been lost for many months. For many shopkeepers and hoteliers it was a breather, though not enough to make up for lost time. However, long-distance and business visitors remained far from pre-pandemic levels, so the return of tourism was partial and did not affect all businesses equally.
For a city in which tourism carries so much weight, the difference between a summer better than the last and a normal summer is huge. Many businesses depend on the flow of visitors to cover high fixed costs, and when the usual customers do not return, the recovery is slower than the general sense of activity suggests. Better than 2020, but still far from 2019. That distance, measured in occupancy, sales and jobs, explains the caution of many business owners.
An uneven recovery
Not all visitors spend alike or behave in the same way. European or domestic tourists tend to stay for shorter periods and with a different average spend from a visitor who crosses an ocean, who normally stays more days and uses more services. Likewise, the business traveller generates a specific demand for hotels, restaurants and meeting rooms.
That these segments remained far from previous levels explains why the recovery could feel partial even with the city full on certain days. The composition of demand matters as much as its volume, and each business’s results depended on what type of customer it served. The same premises could have a good season or a poor one depending on its usual audience.
Who was most affected
Businesses most dependent on the international tourist, and in particular the long-distance or business visitor, felt the recovery less than those with a nearby customer base. The difference between them depended greatly on location, type of offering and cost structure. Premises with a high rent and an almost exclusively tourist clientele were more vulnerable than those with moderate costs and a neighbourhood public.
The recovery was distributed very differently among city-centre businesses. Some regained a good part of their activity with local and regional customers; others, focused on international visitors, still had occupancy and sales well below those of before. For the latter, the situation called for patience, cash and some reflection on their model. Talking to the landlord, the bank and suppliers about payment schedules can provide the breathing space needed.
Rethinking the model
For owners of property and businesses in the centre, the uneven recovery meant reviewing the model: less dependence on international tourism and more on local and long-stay customers. It is worth analysing the customer profile, the flexibility of rental contracts and the fixed-cost structure.
An adviser can help evaluate alternatives without hasty decisions. A change of model usually takes time, and it is worth testing before committing to large investments. The aim is not to abandon tourism, which remains an essential engine, but to reduce the risk of depending on a single type of customer. Diversifying the customer base is a way of reducing risk, and businesses that manage it tend to withstand falls in a specific segment better.
Recovery arrives at different speeds, and the best-prepared business is the one that does not depend on just one.
This article is general information. It is not legal, tax or investment advice, and it does not take anyone’s particular circumstances into account.
