Holiday rentals news - Spanish government to invest 1bn euros in tourism industry

Spanish government to invest 1bn euros in tourism industry

The Spanish government is ploughing 1bn euros into the country's tourism industry. The funding is more than double the amount that was originally planned and will be used to modernise tourist sector establishments.

In 2008 the Spanish government said it would provide 400 million euros to help the country's tourism industry face up to competition from other popular destinations, reports AFP. However, according to the tourism ministry, this has already been spent so the government will provide a further 600 million euros in 2009.

By improving facilities for those staying in villas in Spain and other holiday accommodation, the funding will help boost the country's economy. It is hoped that the work created will provide employment for construction workers who lost their jobs following the collapse of the Spanish property boom.

Through its investment, the Spanish government has expressed its commitment to the tourism sector. In a statement it said: "The granting...of the credit in such a short period of time is evidence that the modernisation of tourism infrastructure is a key demand of the sector."

According to Expatica.com, Spain experienced a 2.6 per cent drop in visitor numbers last year, with 57.4 million holidaymakers staying in the country. In particular, the number of British tourists visiting Spain fell significantly, which has been attributed to the weak pound and the current recession.

The tourist industry is said to account for approximately 11 per cent of all Spain's jobs and gross domestic product (GDP). The majority of this employment is provided in what the website terms Spain's "ageing" sun and beach destinations along the country's southern coast.

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