The necessary plan for our sun and beach tourism

"The Catalan bourgeoisie has always married off their daughters to Rioja wines," Miquel Torres lamented to me many years ago. Indeed, Catalonia produced enormous quantities of wine, but of mediocre quality. Priorat wines, for example, were bought wholesale to be mixed with other wines or simply with soda water. The situation has changed dramatically, but not by chance. The first Pujol government created an institute dedicated exclusively to improving the situation and established a school of viticulture and oenology. Later came the professorships, the designations of origin, and the efforts of a vast number of businesspeople, journalists, and restaurateurs united by the desire to create quality wines.

To give a rough estimate, around 10,000 people in Catalonia make their living from wine, while some 200,000 depend on tourism. Why have we never aimed for our tourism to compete on quality? Why do we settle for mediocrity, both in Barceloneta and Lloret?

Transforming that reality requires three conditions.

First, knowledge.

On Monday, I participated in a conference organized by the College of Economists on tourism. The first thing that became clear was our ignorance of the most basic characteristics of this macro-sector. To begin with, a speaker had to clarify that the sector's weight is not 12% of GDP, as we are constantly told, but "only" 6%, which is what the INE (National Statistics Institute) calculates annually (6% is much less than the 20% for industry, but it is still significant). It was also mentioned that just a few days earlier, the Circle of Economy had published a report based on the low productivity of Catalan tourism, which was immediately followed by another from the Chamber of Commerce that concluded—erroneously—that this productivity is no lower than the average for the Catalan economy. How is it possible that, at this stage, we still have doubts about such a fundamental issue? I say that the Chamber was wrong because the productivity of a sector is the sum of the wages it pays, the profits it generates and the taxes it bears, and our tourism pays low wages, bears low taxes (starting with a reduced VAT) and, except in Barcelona, ​​generates modest profits.

Finally, it was also highlighted that we ignore the tax contribution made by the sector, given that it enjoys the privilege of fixed-term intermittent contracts, which imply that the public treasury takes charge of a significant part of the personnel costs, as if they were on a perpetual furlough.

Second, will.

An attendee asked how it was possible that Catalonia, a major tourist destination, didn't have a single internationally recognized school. The answer is obvious: because we've focused on quantity, and we're content to meet the bulk of the demand with temporary staff.

Third, a plan.

Obviously, transforming a sector from mediocrity to excellence is neither easy, quick, nor cheap. But it all starts with some fundamental ideas that the sector must embrace. The first is that the main structural flaw of the sun and beach tourism sector is that it's geared towards a peak season that, at most, lasts three weeks. Reducing this capacity means extending the high season, stabilizing staffing levels, and increasing prices during the summer. In fact, the fundamental reason why Barcelona's tourism is much more productive than the sun and beach sector is that it's geared towards the demand from April to October. The second is that it makes no sense to bring in immigrant workers if we then have to keep them unemployed—but subsidized—for a significant part of the year.

Catalonia enjoys the ideal conditions for developing top-tier tourism. Its natural attractions, its geographical location, and the presence of Barcelona are an unbeatable combination. And what does top-tier tourism mean? Among other things, it means that it pays good wages, supports generous taxes, and generates significant profits. Ultimately, it means that it contributes to the well-being of our society to such an extent that we finally stop questioning it.

Catalan tourism is highly fragmented, and therefore the private sector cannot be expected to orchestrate a restructuring plan. This is a task that must be led by the Generalitat (the Catalan government) with the cooperation of the municipalities, which control urban planning. It will require significant investment, but the return will be tremendous in economic, social, and cultural terms.

Which government will take on this challenge?