Holidays in Spain face competition from cheaper destinations

Cheaper destinations such as Croatia, Bulgaria and Turkey are challenging the traditional beach holiday in Spain, new research confirms.

Spain remains the world's second most popular tourist destination with an estimated 53 million visitor a year but more are forgoing traditional beach packages in favour of shorter central European and North African city breaks.

The current downturn affecting the UK economy is resulting in savvy travellers heading to the destinations where you get more for your pound on arrival. This makes destinations like Croatia, Bulgaria, Turkey, Central European Cities like Budapest and Prague and new destinations like Marrakech an attractive option.

The sun and beach tourism offered by the Balearic and Canary Islands will continue to be most popular throughout 2008. But growth in these regions will be held back by the increasing number of visitors switching to the alternative destinations on offer.

Barcelona and Valencia are expected to be the most successful city-break destinations in Spain, as they tend to satisfy the diversification demaned by an increased number of sophisticated travellers. However the central European cities of Budapest and Prague are once again gaining popularity whilst a new city player has emerged in the form of Marrakech in the North African country of Morocco.