Spain Emerges World’s Tourism Powerhouse, Madrid Declared Global Tourism Capital 

Spain has cemented its position as a global leader in travel and tourism with outstanding visitor figures, major institutional headquarters based in its capital, and an ambitious strategy aimed at balancing economic gains with long-term sustainability.

In 2025, Spain welcomed a record near-97 million foreign visitors, surpassing the previous year’s total of 94 million and continuing a post-pandemic rebound that has seen annual arrivals set new benchmarks. The surge contributed to substantial economic impact: tourism now accounts for more than 12.6 per cent of Spain’s gross domestic product, generating approximately €134.7 billion ($159 billion) in revenue from international travellers — up nearly 7 per cent year-on-year.

According to official figures, the most popular source markets for inbound travel were the United Kingdom, France, and Germany, with millions of visitors drawn to Spain’s blend of beaches, culture, culinary attractions, and historic cities.

Madrid: Capital of Global Tourism Governance 

In a landmark development that underscores Spain’s growing clout in the global tourism landscape, Madrid has been chosen as the new headquarters for the World Travel & Tourism Council (WTTC) — one of the most influential non-governmental bodies in the sector. After a competitive bid against cities such as Dubai, Paris, Milan and Geneva, WTTC’s governing committee unanimously selected Madrid to house its global office starting in 2026, citing strategic advantages including connectivity, competitive operating conditions, and proximity to global institutions.

The move relocates WTTC’s headquarters to Spain, alongside the United Nations’ specialised tourism agency, UN Tourism, which has long been based in Madrid. Together, these bodies position Madrid as a central hub for shaping worldwide tourism policy, sustainability strategies, and industry leadership — prompting Spanish officials to herald the city as the “world capital of tourism governance.”

Authorities and industry leaders say this clustering of global tourism institutions will not only elevate Spain’s diplomatic and economic influence but also attract additional investment in travel infrastructure, data analytics, sustainability innovation, and start-ups.

Overtourism: Managing Growth Without Killing the Goose

Despite celebration over record numbers, Spain’s success has heightened concerns about overtourism — a phenomenon in which excessive visitor numbers overwhelm local infrastructure, inflate housing costs and erode quality of life for residents.

Regions like the Balearic and Canary Islands, historic city centres and coastal resorts have frequently topped lists of overtouristed destinations. Research and local reporting have documented instances in which resident populations are dwarfed by visitor counts, straining water resources, transport systems, and public services.

Regulating holiday rentals: Authorities have removed tens of thousands of properties from tourist rental registers in major destinations, returning them to long-term residential use to ease housing shortages.

Capping cruise ship and tour bus arrivals: Ports such as Barcelona have limited daily cruise arrivals, and urban planners are encouraging tourists to explore less-visited regions to reduce pressure on historic cores.

Promoting quality over quantity: Spain’s tourism strategy aims to shift focus toward higher-spending visitors, longer stays throughout the year, and more diversified regional tourism, spreading economic opportunity beyond traditional hotspots.

Officials argue that these policies help maintain economic dynamism while protecting cultural sites, housing markets, and local environments from the worst effects of mass tourism.

Local Backlash: Protests Reflect Rising Tensions 

Notwithstanding government efforts, overtourism has sparked significant protests across Spain’s major destinations, particularly in cities where tourism pressure has been most acute.

In Barcelona, long-running discontent has escalated into public demonstrations that, at times, directly confront tourist flows and industry practices. In both 2024 and 2025, residents staged marches and rallies decrying rising costs, crowded public spaces and the dominance of short-term rentals — with some protest actions involving symbolic closures of tourist amenities and dramatic street demonstrations.

Protests have not been limited to Barcelona. Strategic demonstrations have taken place on the Balearic Islands, Canary Islands, Málaga, and San Sebastián, where local campaigners argue that unchecked tourism growth has degraded the quality of life, contributed to environmental stress, and inflated everyday costs for residents.

While protest organisers stress they are not anti-tourist, but rather opposed to unsustainable models of tourism, the movements have spurred heated debate around the future direction of Spain’s most lucrative economic sector.

Looking Forward: Balancing Prosperity and Sustainability 

As Spain approaches the milestone of potentially 100 million annual visitors, tourism officials maintain that the sector’s long-term value lies not just in raw arrival numbers but in sustainable, high-quality tourism that benefits communities across the country. Industry stakeholders are now calling for continued innovation in tourism management, technology integration, infrastructure investment and inclusive policy frameworks that ensure prosperity for both residents and visitors alike. With Madrid increasingly viewed as the epicentre of global tourism policy — hosting both UN Tourism and WTTC — Spain is poised to play a defining role in shaping the future of international travel while confronting the complex challenges of the present.