Spain's BNB bust: Why Indian tourists are ditching tapas for Taj Mahal tours

During her spring break, an Indian MBA student enrolled in a top Spanish business school had planned to explore the Basque countryside, a quiet getaway after months of rigorous coursework. But just days before the trip, her charming bed and breakfast in San Sebastián got abruptly cancelled. With prices for alternative accommodations skyrocketing and options limited, she stayed back in Madrid and settled for local sightseeing.
As Spain grapples with protests against mass tourism, anecdotes like this one are coming up frequently this year. The Spanish government recently ordered Airbnb to take down more than 66,000 rental listings that failed to comply with regulations, particularly those that didn't clarify ownership, while a Madrid court called for the immediate removal of 5,000 such listings. These moves follow mounting protests across major cities like Barcelona and Seville where locals say tourism is pricing them out of housing.
That tension is now echoing back to India's outbound travel industry, with data indicating a noticeable shift away from Spain, particularly among value-conscious and mid-range Indian travellers. According to the latest data from Turespaña, Spain's national tourism board, more than 226,000 Indian tourists visited the country in 2024, growing over 60% from 2022. The increasing negative sentiment and hostility towards tourism may now weigh on the growth, say travel industry insiders.
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'Spain has always been a favourite for Indian travellers, but over the past year, we've seen a noticeable shift,' said Tavleen Bhatia, chief marketing and revenue officer at travel services company Cleartrip. 'This year, pre-monsoon season, bookings to Spain dipped by 32%.'
'Lot of Planning Needed Now'
Indian travellers are broadening their European bucket list and are increasingly turning to destinations like Georgia, Romania, Serbia and Sweden for their rich culture and more affordable experiences, Bhatia said.
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Other factors may also be affecting the shift in traveller intent. 'The numbers this year have been a bit muted. That can be attributed to multiple factors, like changing preferences or less disposable income to spend,' said Rajiv Mehra, general secretary of the Federation of Associations in Indian Tourism and Hospitality.
He also explained the hostility faced by tourists in Spain. 'Accommodation has become an issue of prioritising locals over tourists. Locals view tourists as the prime cause of increased rentals, and they find it unaffordable. The whole issue sprang from there. Tourists avoid those destinations where they feel unwelcome by the locals.'
The lack of affordable accommodation options is also being felt. Hari Ganapathy, co-founder of customised tour package provider Pickyourtrail, said: 'A holiday in Spain now requires much earlier planning, primarily due to the limited availability of accommodations, which has become a more prominent issue recently.'
The well-heeled, however, are still finding their way to the Iberian Peninsula with enthusiasm. According to SOTC Travel president SD Nandakumar, even with a 7-10% increase in tour pricing this year, 'Spain continues to witness strong interest from our customers.'
The average 9N/10D itinerary is now priced around `2.9 lakh per person. Travellers are booking personalised holidays that include winery tours in La Rioja and Ribera del Duero, football stadium visits in Madrid and Barcelona, and nightlife experiences in Ibiza. There has also been a shift in where and how people travel.
'There's a clear uptick in demand for boutique hotels, luxury villas and heritage stays, reflecting the intent to slow down and explore more deeply,' he said.
At Thomas Cook (India), per-person spends for Spain range from 2 lakh to 3 lakh, often with bookings in 4- to 5-star hotels or even luxury resorts. Rajeev Kale, president, Thomas Cook (India), said, 'Interestingly, we are witnessing shorter booking windows — approximately 1.5-2 months in advance, aligning with faster visa processing times.'
According to Kale, emerging locales like Málaga and Costa del Sol in Andalusia, Ronda and Segovia are gaining traction.

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