Released on = March 10, 2006, 12:17 am

Press Release Author = Christian Papenmeyer

Industry = Small Business

Press Release Summary = The current economical situation in Spain increases the
costs of living and makes travelling within Spain, and Barcelona in particular, more
expensive for tourists. As a consequence, new ways of finding a flat have been
established and companies try to compete with hotels offering alternative types of
accommodation for cheaper prices.

Press Release Body = Being one of the most beautiful cities, Barcelona still
attracts people from all over the world. With its unique arquitecture, manifold
cultural highlights, a flourishing economy and its historical background, the city
has kept its special character and still continues to strengthen this position.
However, problems arise at the same time when it comes to the costs of living and
the renting of an accommodation. Taking a closer look at the entire Spanish economy
and the Catalan in particular will lighten some concerns.
Growing three times faster than any other European economy for the past 5 years
(2005 the GDP achieved a growth of 3,5%), Spain now has to face its effects like
higher living costs, increasing rents and growing competition within the market of
accommodation. Especially the renting of accommodation has considerably grown and
indicates a rate of 4,3% in the year 2005 in the case of Catalunya. Additionally,
the costs of living have risen steadily and in the year 2005, Barcelona found itself
for the first time under the top 50 (rank 46) of the most expensive cities
worldwide. Combining this data with the fact that Barcelona is still accumulating
more tourists at a pace of 11% more in 2005 compared to 2004, this leads to further
problems for the Spanish people and even more for the tourists visiting Spain. They
will have to face a more expensive holiday-country with a capital (Madrid), which is
3rd rank of the most expensive cities in Europe.
As a consequence, new ways of finding a flat have been established and
internet-providers are growing constantly, thus reaching a fairly high
costumer-rate. The internetprovider www.oh-barcelona.com , for instance, has risen
to a flourishing company since its beginnings in 1998. They offer a wide range of
apartments, hotels or vacational rentals. Data like the 15.000 daily visits clearly
point to the growing demand in this sector and indicate a high use of this service.
However, focussing on students and other visting foreigners, they also have to face
higher prices for renting and accommodation. For incoming tourists this implies to
make a selective choice in searching for a flat or a hotel. Furthermore, due to
higher costs when renting a flat, they tend to spend less time on their vacation in
Spain. This leads to a loss of competitiveness of Spain in comparison to other
summer-destinations like Egypt, Greece or Turkey. Online services will benefit by
these costumers, who look for a flat on the spot or just for having short-term
vacations. Concerning companies and business-travellers however, this option of
short-term stays could mean a better use and higher savings for companies as offers
are generally cheaper than hotels. Moreover, this internetservice provides a
manifold variety of accommodations and therefore should be considered as a serious
alternative by managers and different corporates.
Eventually, the economic development in Spain and its accompanying circumstances
which have been illustrated will not stop owners to react on the increasing demand
for accommodation with higher rents. However, competition within this sector may
open more opportunities for tourists and generate a more transparent market.

Web Site = http://www.oh-barcelona.com

Contact Details = Postal del Angel 42, B
08002 Barcelona
0034 933015273
marketing1@oh-holidays.com