Saturday, March 28, 2009

Spanish government set to modernize tourism industry

The Spanish government has announced a multi-million euro cash injection in a bid to support the country's tourism sector.

According to, loans totaling approximately 400 million euros have been assigned to the tourism sector, which has been passed on to companies operating within the industry to modernize their facilities. As these funds have already been spent, the Government has pledged to provide a further 600 million this year.

A tourism and industry ministry spokesman commented: "The granting...of the credit in such a short period of time is evidence that the modernization of tourism infrastructure is a key demand of the sector." According to Spain's deputy prime minister, Maria Teresa Fernandez, the cash injection is expected to boost the country's economy by improving facilities for those staying in holiday accommodation particularly the elderly European holidaymakers, which may interest people looking for a property in Spain. The tourist industry currently accounts for around 11 per cent of all Spain's GDP.

Earlier, Span's housing minister Beatriz Corredor has stated that economic and property sector recovery will begin in the second half of next year and the current slowdown was needed to alleviate the rapidly rising house prices, which had tripled in the ten years, according to Reuter reports.

In related news, Jose Luis Zoreda, vice-chairman of the Alliance for Tourism Excellence, called for "urgent measures" and "big financial injections" in order to help tourism industry.