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550 Spain
of international arrivals to Spain had reached 2.7
million, and it was clear that tourism demand was
not hindered by those shortcomings.
Because of close cooperation between the
national industry and international tour operators,
investment in tourism has been enormous since
then, resulting in practically continuous growth in
tourist numbers and revenue. The number of
international arrivals to Spain was 62 million in
1996, of which an estimated 42 million were
tourists. Domestic tourism has also grown in
parallel, with a demand for both international
holidays �some 4 million in 1996, with Spain
occupying the position 10 in the ranking of tourism
origin countries) and national tourism services. At
present, it is estimated that 45 per cent of the
tourism demand in Spain is international, while the
remaining 55 per cent is from holidaying Spaniards
themselves. The Spanish stock of tourism capital is
estimated to be worth over $300 billion and
includes over 1.3 million hotel beds, another 5±6
million non-hotel tourist beds, over 58,000 restaurants
and tens of thousands of other tourism
entertainment installations. The main markets for
Spanish tourism are in Europe, with tourists
coming mainly from France, Germany, the
United Kingdom, Portugal, Italy and Belgium.
Long-haul arrivals from the United States,
Japan, Latin America and other origins are on the
rise, but still represent a minor segment of demand.
Spain is endowed with rich and diversified
resources, although tourism has concentrated
largely on the peninsular coastline and its two
archipelagos �Balearic and Canary Islands). Therefore,
the potential resource base for tourism is still
considerable, with the interior of the country
largely undiscovered by international tourism
and providing for authentic cultural experiences
and controlled visits to many natural reserves.
The impact of tourism on the Spanish
economy is enormous, accounting for an estimated
9±10 per cent of the GDP and some 11±12 per
cent of total employment, and being one of the
fastest growing activities. Of course, these figures
are not evenly distributed across the whole country
but vary considerably among the regions. It has
been said that `Spain is not a tourism power. . .
some of its regions are'; Catalunya, AndalucõÂa and
Valencia, all coastal regions, together with the
Canary islands and the Balearic archipelago,
account for over 65 per cent of total demand.
Other coastal regions in the Mediterranean
�Murcia) or the Atlantic �Galicia, Asturias, Cantabria
and the Basque Country) are experiencing a
strong increase in tourism demand and responding
with new tourist facilities and modern infrastructures,
while adopting high standards of environmental
quality.
The role of government in tourism development
has been active since the 1950s and even
before, but has changed much in scope. Because of
the importance of tourism in Spain's balance of
payments as a foreign exchange generator, central
government assumed early the lead of promotional
activities in foreign markets, with varying degrees
of coordination with private initiative. Foreign
tour operators did most of the actual selling
abroad, with the Spanish industry concentrating on
the product side within the country and adding
little in the way of international distribution.
Government intervention in tourism production
was limited to legislation concerning the quality of
services �consumer information and protection)
and isolated investments in high-category lodging,
adapting national heritage buildings �castles,
monasteries and so on) to hotel use and managing
the resulting product, the Paradores de Turismo.
In the beginning of the 1980s, and because of
the political devolution process, the policy powers
in tourism were handed to the regions, the socalled
Comunidades AutoÂnomas �Autonomous Communities).
These have almost full powers to control
tourism in their respective areas and to promote,
even abroad. For several years, between 1982±3
and 1990, many chose to exert that capacity with
little coordination with the central government or
other Comunidades AutoÂnomas. Later, at the beginning
of the 1990s, the importance of policy coordination
in achieving efficiency was recognised.
The tourism policy of the Comunidades AutoÂnomas
in the 1980s concentrated on the promotional side,
while regional governments were consolidating and
assuming their tourism capabilities. Product policies
and quality issues received less attention at a
time of high inflation, with the result of a loss in
competitiveness in tourism markets. By the end of
the decade, Spain as a whole was rapidly losing