Magazine

Since the New York Times included Cádiz among the 52 best cities as a tourist destination for 2019, the only Spanish city, Cádiz has been on everyone's lips.

And it is not without reason: not only because of its wide variety of tourist attractions, but also because we can see it reflected in its income.

A tourism report by Exceltur ranks Cádiz fourth nationwide in average income per room, ahead of Madrid.

As for tourist apartments, income has increased over the years. As we can see in the chart, income has been rising every year in the city of Cádiz. In the last three years, €23,994,100 has been earned. 

In 2018, €7,923,443 more was earned than in 2016, when only €3,610,242 in income was obtained. Moreover, income is rising not only in the summer season; the figures increase during all seasons. 

In the first quarter of the year, which is usually the one with the lowest income, we see that in 2018 €1,873,483 more was collected than in 2016 and €812,751 more than in 2017. 

Chart 1: Brickstarter

We can also see that the total income of the 3 years was not obtained equally in all the zip codes of the city. The zip code with the highest income is 11002 with €3,998,358, closely followed by zip code 11003 with €3,823,548 in total income, with an average occupancy of 55.21%. 

That ranking takes historical, climatic and cultural values into account. As a result, Cádiz offers a wide range of tourist attractions.

It is famous for its carnival and its spectacular beaches. It has a great artistic, monumental and historical legacy, making it one of the oldest living cities in Europe. It was founded by the Phoenicians and was then followed by the Carthaginians, Romans, Goths, Arabs and Christians.

It competed with Seville to be the port for the goods trade after the discovery of America, and it was there, in 1812, during the War of Independence, that the Cortes Generales proclaimed the first Spanish Constitution, La Pepa.

It therefore has great tourist appeal, which is reflected in its overnight stays: in January it recorded a total of 209,909 in the hotels of Cádiz.

Most of these overnight stays were by domestic travelers (107,402), outnumbering foreign travelers (102,507), according to the Institute of Statistics and Cartography of Andalusia. In addition, the average stay is 2.2 nights. As for the number of travelers, the province of Cádiz recorded a total of 97,399, ranking fourth in Andalusia behind Málaga (249,520 travelers).

In January 2019, most Andalusian provinces show growth rates in both travelers and overnight stays, with Cádiz and Seville standing out, showing double-digit growth in nights stayed.

Chart 2: INE

In short, after analyzing all the information, we agree with the New York Times: Cádiz is trending, and not just because they say so; this is reflected in the figures that have been observed.  We have been able to see it in our opportunity in Cádiz, La Caleta.

For March we have 87% occupancy, and for next month we already have 90% of the occupancy covered (2019 data, no guarantee of future results). There are 182 days booked through the end of 2019.

The market study forecast that it would achieve an average occupancy of 71.25%, and before the end of the first quarter of the year, it already has an average occupancy of 67%. This means reaching 90% of our initial income forecast for the whole of 2019 (historical data; it does not guarantee future results). 

For all these reasons, we consider that Cádiz is a destination with growing tourist demand. 

Past or estimated returns do not guarantee future returns. Investing involves a risk of total or partial loss of the invested capital.