Simon Wade
LOWER HOME sales, tourism revenues and rising energy prices due to Russia’s invasion of Ukraine could cost Costa Blanca 400 million euros, reports claim.
The economical implications of the ongoing conflict in Ukraine could have a devastating effect on Spain’s Costa Blanca.
Some 200,000 tourists and investors moved between the two countries and the Costa Blanca in 2019, according to Turisme Comunitat Valenciana and property development sources.
Although Russians make up only 2% of the tourist numbers in the region, they do represent a high level of spending per person, an average of 124 euros per day according to statistics.
Toni Mayor, president of the hotel association HOSBEC, said this sector of tourism can be protected if the conflict: “is redirected through the diplomatic and peaceful path in the next few days.”
Lamenting: “the effects of this conflict will be noticed sooner or later, both in a contraction of reservations and in a new rise in all costs.”
Almost 12,000 Ukrainians live in Alicante province, with Torrevieja housing the highest concentration, with just over 3,000.
There are also pockets of Russian nationals in the Alicante districts of La Marina Baixa and La Marina Alta.
Exceltur supports and promotes Spanish tourism excellence around the world.
Their vice-president, José Luis Zoreda, said the war between Russia and Ukraine “is not a positive scenario”, especially after the industry was seen to be recovering from the last wave of Covid-19.
He said that the war will see energy costs rising because of Europe’s reliance on Russian gas.
He remarked, “any energy cost overrun will probably have to be absorbed by businesses out of their profits.”
READ MORE:
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– Barcelona’s Mobile World Congress 2022 in Spain removes Russian pavilion from next week’s event
– Russian invasion of the Ukraine described as ‘terrible blow’ to economic recovery of Spain’s Costa Blanca and Valencia areas
