Gecko Towers:
A few years ago on the Circle Line boat tour of Manhatten Island, our guide, after detailing the various shore-line properties and the location of the just completed, High Line, paused. He asked whether we knew what was the single biggest contributor to the GDP of New York City? With a dramatic wave of his hands high above the heads of his seated audience he announced – “You are!”. Tourism is what keeps the wheels rolling in the city that never sleeps.
Let’s not kid ourselves that London, Paris or Venice could probably “survive” without the much needed tourist $, € or ¥, but would it thrive? If New York City needs to attract tourists to contribute to their highly valuable hospitality sector and, in so doing, injecting valuable cash into the City’s tax coffers to keep everything else going, then the same applied for Malaga, Marbella and most of the Costa del Sol.
Tourists can sometimes be irksome. Crowded beaches have a devastating environmental impact. Scarce water resources are diverted to fill hotel swimming pools. Poor driving, by those with cars stuck with rental stickers, unfamiliar with the road systems and driving on other side of the road, is a given. I may be prone to mild road rage like everyone else, but I tend to accept that these visitors may only be here for a week or two but they are bringing in holiday cash to spend on local amenities to the benefit of many. I can get “my beach” back in September…
Tourism is not simply a new phenomena, let me share a little history.
For much of the 19th century Málaga province had been quite prosperous. However, by the late 1890’s it experienced a decline in the textile, agricultural, wine and iron ore businesses – you can still see the concrete pillar in the sea at the “El Cable” beach in Marbella – to the East of the Centre of town – that used to bring the iron ore mined in the quarry at Sierra Blanca, to waiting ships. As a result, it was suggested that tourism should possibly be considered as a source of sustainable long-term income. As early as 1897, Malaga’s plans as a year round tourist destination were being formulated and slowly realised. The Baños del Carmen (east of Malaga) was open after the turn of the century, 1928 the Torremolinos golf course was launched and, in 1933, the “Hotel Miramar” arrived in Marbella. The owners of the latter promoted the destination to English and French visitors using the expressions in their marketing, “Sunny Coast” and “Cote du Soleil”, which, it is believed, gave the origin of the Spanish version “Costa del Sol.”
Post The Spanish Civil War and World War II, Aristocrat, Ricardo Soriano – who gave his name to the main avenue running through Marbella – promoted Marbella to his friends. Having purchased the El Rodeo estate near San Pedro de Alcantara in 1943, he created the first tourist development. His nephew, who bought Finca Santa Margarita in 1954, inaugurated the still hugely popular, Marbella Club
Torremolinos, in late 1940’s into 1950’s, became a very popular holiday destination with the hotels La Roca and Paz España.
The 150 km long Costa del Sol, that runs from La Linea de la Concepcion in the West to Nerja in the East, exploded with tourism from the late 1950’s and to 1970’s. It was planned to meet the demands of international tourism, the lure of its beaches and local culture, whilst it sought to preserve some of the elements of historical charm. The massive increase in the sector led to a rural depopulation as workers arrived on the Costa del Sol eager to work in the evolving businesses. Málaga Airport has been improved on several occasions to accomodate yet larger passenger numbers and low cost flights and package holidays stimulated the market generally.
The growth continued into the new Millennium with Brits, Dutch and Swedes voting with their feet to settle as expats on the Costa Del Sol both East and West of Malaga. This led to residential tourism with property owners renting their homes, on a short term basis, to others who preferred not to stay in traditional hotels making their holidaying easier and less formal.
So whilst it’s clear that the Costa del Sol tourist market is a phenomenon that solved an economic problem for the region it has probably succeeded far in excess of the expectations of the founding fathers. So as a community we now need to deal with the excess and, frankly, not kill the golden goose in the process. I can see a rational argument for a Tourist Tax as the pressures placed by tourists on a relatively fragile environment need to be minimized by funding. Without tourism, in whatever form that takes, be it hotel occupancy, AirBnB or staycation, the undeniable fact is that it brings economic activity stimulating commerce, wealth and job creation. The hospitality sector is a major driver in the economy of the Costa del Sol so seeking to encourage tourists to stay away is a “turkeys voting for Christmas” stance that is unlikely to win.
Certain press reports, among the hysterical “red tops” of particularly the UK, have spun a message that suggests a “backlash” against tourism. There are key environmental concerns that need to be properly addressed and, where possible, comprehensively, solved. There is an inequality between the costs of residential property aimed at an international buyer that tends to price out the demand from local workers which needs to receive careful consideration and enforceable public policy. We need our neighbours to be local and we need support staff, that are keen to work in hospitality, living locally. Above all, the success of the economic model that drives the Costa del Sol needs to endow the widest possible benefit. In that way, the multiplier effect of attracting wealthier visitors and residents to the region will become of tangible benefit to those engaged in this market at all levels.
Should you be interested in discussing the process involved in buying a property in the Marbella region, we would be delighted to assist you. Please contact me to discuss your precise requirements.
Please note that our posts are for general interest. There is no substitute for proper advice tailored to your specific circumstances as provided by a qualified Abogado who is experienced in the application of the Spanish Law.
Nothing contained in this article should be seen or taken as the writer or the publisher providing legal, tax or financial advice. All details have been reasonably fact-checked and all efforts have been taken to ensure that facts are accurate as at the date of publication.
My details: Mark FR Wilkins, during usual business hours on +34 600 343 917 or e-mail me at mark@therightsgroup.com
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