Spain’s Tertiary Sector: Trade and Tourism

The Tertiary Sector in Spain

The tertiary sector is the most important economic sector in Spain. It has experienced the greatest development in recent decades and now provides about 70% of the country’s GDP and employment. About 99% of companies in the sector are small, with fewer than 50 employees. Together, they account for just over half of the total turnover. Large companies generate 30% of turnover and employ almost a quarter of the workers in the sector.

Trade in Spain

Domestic and Retail Trade

Shopping habits in Spain have changed enormously in recent decades. In the last 10 years, small neighborhood stores have been disappearing, and mega-stores have grown: supermarkets, hypermarkets, and shopping centers. However, many people still shop at small stores.

At present, only a small minority uses other forms of commerce, such as shopping by catalog, TV, or electronic commerce. However, electronic commerce is growing rapidly. Between 2007 and 2008, internet transactions for goods and services increased by 40%. Airline tickets and travel services make up most of these transactions.

Foreign Trade

In recent years, Spain has increased its exports of goods such as industrial products, food, beverages, and automobiles. However, imports continue to be greater than exports. The main types of products imported are the same as those exported, plus energy-producing products. The majority of trade is with EU countries, mainly Germany, France, Italy, Portugal, and the UK. Outside the EU, Spain’s main trade partners are the USA, China, and Russia.

Tourism in Spain

Spain is the world’s second most important tourist destination in terms of income, after the USA. In terms of the number of visitors, Spain ranks third, after France and the USA. Tourism makes up 10.5% of the Spanish GDP and employs over 12% of the total population. The majority of workers have jobs in hotels, restaurants, and transport. Many jobs related to tourism are seasonal since most tourists come during the summer.

There are several ‘pull factors’ for tourism in Spain. The main ones are:

  • A sunny climate and good beaches
  • Cultural richness
  • Good transport facilities and infrastructure
  • A wide range of plentiful accommodations
  • Good quality health and social services

Traditionally, coastal tourism predominated in Spain, but recently, other types of tourism, such as rural, cultural, and business, provide significant economic benefits.

Domestic Tourism

The Spanish population is also traveling more and more. The majority travel within the country. In 2008, these trips accounted for 93% of all tourism. Many Spanish residents use weekends for tourism. They choose nearby destinations and normally travel by car. In 2008, their preferred international destinations were France, Portugal, Italy, Andorra, the UK, and Morocco.

International Tourism

Although Spain receives visitors from all countries, tourist preferences reflect nationality:

  • French and Italian tourists have a strong preference for Catalonia.
  • Tourists from Germany and the UK choose the Balearic and Canary Islands. The UK is also the main source of foreign tourism in Andalusia.
  • Scandinavian tourists prefer the Canary Islands, Catalonia, and, to a lesser extent, the Community of Valencia.

Regarding how tourists travel, other trends can be seen. Over three-quarters of all tourists arrive by airplane, half on low-cost carriers. Most tourists stay in hotels.