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Date Published: 28/02/2022

ARCHIVED - Russia-Ukraine war could cost Costa Blanca 400 million in tourism turnover

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200,000 Russians holidayed in Alicante province in 2019 and 35,000 Ukrainians travelled to the province last year

<span style='color:#780948'>ARCHIVED</span> - Russia-Ukraine war could cost Costa Blanca 400 million in tourism turnover

Russia's condemned invasion of Ukraine has already claimed the lives of more than 350 civilians, according to the Ukrainian health ministry (as of Monday February 28), and altered the security landscape of Europe in just five days.

And whilst the cost of lives is the most serious consequence, closer to home, the unilateral attack by Vladimir Putin's military is expected to prove costly on the Costa Blanca, threatening a tourism and real estate turnover of 400 million euros a year.

In 2021, a year still marked by the paralysis of international travel caused by the pandemic, Alicante developers sold around 70 tourist homes in both countries, according to sector sources.

This eye-watering figure takes into account these property sales and the arrival of 200,000 tourists, predominantly Russians, who moved between the province and both countries pre-pandemic, according to data from Turisme Comunitat Valenciana and real estate development sources.

Furthermore, the repercussions that the war may have on the rest of Europe, especially in nearby countries, such as Germany, Poland and Sweden, is of great concern.

Alicante-Elche airport has regular flights to Moscow, St Petersburg and Kiev, the latter since last year, as until then movement between the Valencian Community and Ukraine was only possible via Valencia.

But within hours of Russia's invasion of Ukraine, the first repercussions were felt with the suspension of the eight weekly flights (Monday, Thursday, Friday and Sunday) by Ukrainian airlines (Skygroup and BeesI), which operate between Alicante-Elche airport and the Ukrainian capital, Kiev.

Russia is not one of the largest tourist markets on the Costa Blanca, representing just 2% of the total number of overseas visitors, but it is a country with high purchasing power in general, as shown by the fact that its average daily expenditure is 124 euros, the highest of all tourists, according to Turisme statistics.

Russian tourists typically stay in hotels (35%), flats and rented houses (27%), their second home (21%) and in the homes of family and friends (16%).

Also read: Serious concern over consequence of Russia-Ukraine war on Spanish agriculture

The average stay is 13 days, 90% travel alone and 98% arrive in the province by plane. Around 80% of those who arrive in Alicante stay on the Costa Blanca.

Some 12,000 Ukrainians reside in Alicante, 6,478 women and 5,354 men. Taking into account that the total population is 1,879,888, this represents 0.63% of the total.

Torrevieja is home to the majority of Ukranian expats in Alicante province, with 3,046 registered residents, followed by Alicante (2,156), Orihuela (789), Benidorm (610), Denia (533), Villajoyosa (329) and Elche (296).

"The fact is that, beyond the repercussions on the Russian market, a conflict of this magnitude will have an economic and social impact on the entire population and will end up having a negative effect on tourist flows, unless it is resolved peacefully and diplomatically in a few days," warned the president of the Valencia region's hotel and tourism business association Hosbec, Toni Mayor.

Meanwhile, according to the executive vice-president of Alliance for Excellence in Tourism, José Luis Zoreda, it is "very difficult at the moment to anticipate the consequences of the war in Ukraine, although if it becomes a destabilising element in Europe it could have an impact on tourism demand".

In 2019, around 1.3 million Russian tourists arrived in Spain as a whole and spent around 1.4 billion euros in the country. And even if there isn't too much impact on tourism demand, it will have an impact on energy costs, which will rise, he warned.

Also of interest: Spain rules out gas shortage as a result of Ukraine crisis

In Zoreda's opinion, "any additional energy costs will probably have to be borne by companies" and the conflict could generate new uncertainties that "make the recovery of employment and, therefore, the extension of temporary lay-offs (ERTE) once again essential".

Image: CVporsiempre

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