The Diplomat
The tourism sector could create more than 93,000 new jobs if it received funds from the European Recovery and Resilience Mechanism in a percentage equivalent to its weight in the national GDP, 12.4%. This is according to a study promoted by the Tourism Commission of the Spanish Chamber of Commerce, which estimates that this aid would have an impact of almost 15 billion in production.
The study indicates that an investment of Next Generation EU funds amounting to 8,621 million euros, earmarked for the modernisation and improvement of the Spanish tourism industry, would have a multiplying impact on GDP and employment in Spain due to the knock-on effect that tourism has on other economic activities.
Specifically, the report calculates that for every 100 jobs directly generated by investment in the tourism sector, 161 additional jobs would be created; for every 100 euros allocated to modernising the sector, the value of the economy’s output would increase by an additional 72 euros; and for every 100 euros of Gross Value Added (GVA) directly derived from these investments, an additional 105 euros of GVA would be created.
The analysis underlines that tourism is one of the main drivers of the Spanish economy, not only because of its direct contribution to GDP or job creation, but also because of its dynamising effect on other productive sectors.
The food and beverage sector alone owes 10.5% of its total production to tourism. This percentage rises to 11% in the case of energy, and reaches 50% in activities such as sports and recreational services, and accommodation, food and beverage services.
In terms of employment, 11.7% of jobs in the security, building and administrative services sector depend on tourism activity. In the case of retail trade, 5.8% of the sector’s employment is due to tourism activity. In sports and recreational services, and accommodation, food and beverage services, around 50% of the workforce is linked to tourism.
The study of the Tourism Commission states that, taking into account that Spain would receive some 69,528 million of European funds, and that the tourist GDP represents 12.4% of the Spanish economy, it could be inferred that some 8,621.5 million would be allocated to the modernisation and improvement of the tourist industries in our country.
With this, the indirect impact on production would reach 6,199 million euros, which would result in a total impact on the economy’s production of 14,820.5 million euros, once the planned investments have been made.
In terms of Gross Value Added (GVA), the initial investment would have a direct impact of 2,740.2 million euros and an indirect impact of a further 2,874.3 million euros. Thus, the total impact over the three years envisaged could amount to 5,614.5 million euros.
Finally, thanks to the investment for the improvement and modernisation of tourism, up to 35,880 direct jobs could be created in the branches of activity responsible for supplying the investment goods and services. In addition, a further 57,707 jobs could be created indirectly.
In short, the Spanish Chamber of Commerce estimates that the total impact on the labour market of investment in the improvement and modernisation of tourism activity between 2021 and 2023 would be around 93,587 jobs.
