Spain remains one of the most popular holiday destinations for Brits, but that could start to shift. Higher prices, talk of a new tourist tax and tighter entry requirements may push some holidaymakers to look elsewhere. For timeshare owners tied to Spanish resorts, changing plans isn’t always so simple.
Rising costs in Spain
In April 2022, hotel prices in Spain rose by 36% year on year, according to a Reuters report, with inflation and higher energy costs blamed. Many of the same cost pressures can affect Spanish timeshare resorts too.
Similar hikes for timeshare maintenance fees
Timeshare operators face many of the same day-to-day running costs as hotels, so they are unlikely to be shielded from price rises. For that reason, some experts expect these increases to be passed on to owners through higher annual maintenance fees. "Especially when you take into account the resorts' track record of 'profiteering' from outside factors," says Andrew Cooper, our CEO of European Consumer Claims (ECC).
€100 per day entry requirement
There is another cost facing holidaymakers in Spain. The Spanish Ministry of the Interior introduced a rule requiring visitors from outside the EU to show they have sufficient funds to cover their stay.
This equates to €100 (£85) per person, per day.
Unaffordable for many families
That means a family of four travelling to Spain for a fortnight would need to show €5,600 (£4,730) is available.
Many Brits don’t have that level of savings readily accessible, which could make a Spanish break feel out of reach.
Why this hits timeshare owners hardest
The same issue applies to timeshare owners, many of whom may struggle to meet these requirements.
In practice, they can be left with an unappealing choice: pay for a holiday in Spain they can’t fully enjoy, or travel and risk being refused entry.
Tourist tax in the Costa del Sol?
On top of this, provinces along the Costa del Sol are considering a tourist tax of around €1.50 per person, per day. Why?
It has been suggested it would attract “higher-quality” tourists. Aside from the tone of that argument, it also raises concerns about fairness when many people are already feeling the pressure of the current economic climate.
Not great timing
Carlos Perez-Lanzac, president of the Andalusian Tourist Housing Association, said: "Entering a potential recession... I do not think it is the time to raise a tax as it may go against the competitiveness of Malaga as a destination."
Airport chaos and extra border checks
Then there’s the U-turn on a potential move to ease airport congestion.
Until recently, UK travellers were expected to be able to use automatic e-gates on arrival. Now, passports must be stamped, which can increase queuing and congestion at border control.
Brits may also face additional checks, including showing proof of onward or return travel and proof of accommodation when entering Spain.
Alternatives for non-timeshare travellers
For regular holidaymakers, the answer is straightforward: change destination. Countries such as Greece, Portugal and Bulgaria remain popular alternatives, with beaches and attractions that appeal to many British travellers.
Timeshare owners have fewer choices
For timeshare owners, it’s rarely that easy.
When many people bought their memberships decades ago, timeshare was often seen as a sensible option.
Now, timeshare can feel outdated, and some holidaymakers find they get better value from booking regular holidays.
Complicated exchange systems
In theory, owners can switch to a different resort using a timeshare exchange system. In practice, this often doesn’t work smoothly, which can leave owners with a Spanish membership effectively tied to Spain.
Limited options for owners paying regardless
"Timeshare owners in Spain have pretty limited options," explains Andrew Cooper. "They have to pay their maintenance fees whether they holiday or not. They are faced with the stark choice of not using their membership, while still paying for it, or to use it and accept such financial or bureaucratic obstacles as the Spanish authorities see fit.
"If, like a high percentage of Brits, they don't have the required amount of money in the bank, they will have to hope they don't get stopped and asked for proof of funds."
Is it time to get out?
Many timeshare owners don’t realise they may be able to relinquish their timeshare contract, or who they can trust to support them through the process.
In addition, a lot of timeshare contracts in Europe over the last two decades incorporate illegal aspects, meaning owners could receive compensation.
If you’d like to discuss your options for leaving a timeshare commitment the right way, or claiming compensation, you can contact the Timeshare Advice Centre for a free and confidential consultation.
