The coast of the of

According to the 2016 Hotel Investment Market X-Ray Last year, two thirds of investment came from interna- report in , published by the real estate consultan- tional sources, a trend starting in 2015. In other words, as a tourist cy firm IREA, Spain and Germany were in 2016 the two 64% of total investment came from international inves- countries receiving more real estate investment. tors (e.g. Hotel chains or REITS) and the remaining 36% from Spanish investors. investment The report also anticipates that in 2017, Spain will sur- pass France as third hotel investment destination in Eu- As for the origin of international investors, France was rope after having a total investment volume of €2.184 first (€628 million), followed by Germany (€149 million) destination billion, slightly less than the previous year, when it recei- and Luxembourg (€93 million). It is also relevant that last ved more investment than ever before. year there were no investments from sovereign wealth funds coming from oil-producing countries. Around 24% of all commercial asset investment targeted hotel assets, according to the report. The sectoral profitability indicator (known as RevPAR) increased 10.4% in 2016 for a 43-month growing trend, obtaining a value 27% higher than in 2008. TERRITORIAL REFERENCES YECL A

ALBACET E JUMILL A ALICANTE 1,470,273 inhabitants 274 km of coastline 3,2% Spain’s total (46,572,132) 5th province after the Islands, Cadiz and Tarragona

January 2017 MURCIA CARA VACA 11,314 km2 60,133 beds 2,2% of Spain’s total (505,968) 1,8% of Spain’s total SAN JAVIER

December 2017 LORCA CARTAGENA 130 persons/km2 19º C average temperature Spain: 92 persons/km2 66º F 300 days of sunshine yearly 443,243 inhab. city of Murcia ALMERÍ A 7th most populated city in Spain

National chains invested €276 million in the purchase of vPAR (revenue from available room) and occupancy rate Account, shows that most predictions on the future of 32 hotels, with HOTUSA’s purchase of 5 establishments - exceeded the national average. More specifically, for the refer to the key role played by the standing out. National investors spent 304 million. Calida destinations the year-on-year growth rate tourist sector. The wish to enjoy unique experiences is for tourist occupancy nearly doubled the average rate of one of the main pillars of the forecasted tourism demand Within Spain, 97 hotels were sold, 17% more than the pre- all Spanish vacational destination included in this report. growth over the next few years. Within this context, the vious year (83), although the average number of rooms challenge for tourist destinations such as the Region decreased more than 33% (down to 142). So far this year, The Economist Association of the Region of Murcia, ba- of Murcia is to be capable to meet and exceed tourist individual asset operations were more common in the sed on the 2017 January Barometer results, sees tou- expectations, thus further turning tourism into a driver Spanish market, different from the trend of the last few rism and hospitality as the sector with the best growth for job creation and economic prosperity. This requires years when investment tended to focus on traditional prospects for the first semester of 2017. According to forward thinking and designing, in collaboration with lo- destinations. economists, international investment and tourism are cal entrepreneurs and social agents, a proposal that in- solid options against other possible unfavorable inter- cludes unique experiences based on the peculiarities of The information provided by Exceltur’s last Barometer national political-economic scenarios. each Murcia Region area. for profitability and employment in Spain’s tourist desti- nations for 2016, reveals that both for vacation destina- The IMPACTUR study on the economic impact of tourism tions (Costa Calida) and urban destinations (large cities) on the Murcia Region economy and employment, prepa- the main sectoral ratios - ADR (average room rate), Re- red by Exceltur in line with the regional Tourism Satellite COMMUNICATIONS

2 international airports Highways 2 international ports in a 80-km radius: in a 200-km radius Murcia- 3:30 h. Murcia- 2:00 h. The Port of Cartagena offers regular service to the INTERNATIONAL AIRPORT OF THE REGION OF MURCIA Murcia – Mediterranean Rim: AP7 largest ports in the world, connecting the Region of ALICANTE - EL ALTET Murcia to destinations in , America, Africa and Asia. Brussels 2:30h + 15 lights/week London 2:15h + 30 flights/week Paris 2:00h + 30 flights/week Berlin 2:20h + 30 flights/week

The study shows the important role of tourist activities and others fully developed. In fact, there is a combina- in the economic system of the Region of Murcia, which tion of areas with key natural value, most likely some according to initial Tourism Satellite Account estimates of the best preserved in the Mediterranean Region and generated over €3.1 billion in 2016. This resulted in in- others highly built-up. The report also shows that the creased relevance of tourism in the regional economy, Region of Murcia has one municipality in a list of 155 that from 9.2% in 2010 to 11% in 2016. are less filled and none in the TOP 10 of more-filled mu- nicipalities in our country. Having said that, there is one In addition to economic figures, which are obviously im- in the TOP 25. The main risk is the sea level rise resulting portant, it is also necessary to know that the late develo- from climate change. pment of tourism in the Region of Murcia has resulted in various advantages: Some of the main problems resul- ting from tourist activities in highly consolidated desti- nations do not significantly affect the Region of Murcia. This is clearly described by an organization known for strong environmental statements and which in its last public report on the status of Spanish coastal described Murcia as a region with areas well preserved In the last few years, structural tourism assets have increased significantly in the Region of Murcia.

This refers mainly to capabilities in terms of accommodation, tourist resources, communication and connection services and infrastructures, ensuring the region’s readiness to receive tourists and make their stay pleasant.

IMPORTANCE OF TOURISM

Flow of tourists Economic impact 53,894 in official & private accommodation of tourism directs jobs 63,000 directs & indirects jobs

5.6 MM 41.6 MM 7.4 days 3,390 MM 11.2% 6.3% 11% 1st 3% million tourists million overnight One of the longest Tourist GDP if GDP Increase rate of regional Employment Average stays average stays in in 2017 / 2017-2016 employment record in 2017 year-on-year the country / initial estimate increase rate / last 5 years TRANSPORT INFRASTRUCTURES

Intern. Airport of the Region of Murcia Railroad: High speed train Upcoming inauguration: 2020

22 24H 3.5 MM Line connecting 955 km 1:20 H operations/hour flight schedule passenger/year length Valencia-Murcia capacity extendable to 5 MM Madrid - passenger/year 300 km/h 1,6 MM maximum capacity Castile La Mancha - maximum speed million seats

Valencian Region - 2:30 H Murcia Región Madrid-Murcia

Alicante-El Altet Airport

37 23 87,113 airlines countries operations > +17.6%

117 12.3 MM 20 MM destinations passengers > +16.7% passengers/year maximum capacity 212 routes Port of Cartagena:r

Cruises The Port of in cruise 147 cruises Cartagena passenger flow

231,548 ranks eighth in Spain passengers / +23.3% *year 2017 GROWTH OF INTERNATIONAL TOURISM IN THE REGION OF MURCIA AND SPAIN MAIN INTERNATIONAL SOURCE MARKETS. / 2014-2016 PERIOD HOTEL ESTABLISHMENTS IN THE REGION OF MURCIA .

Alemania Países Nórdicos Italia 5.4% Región de Murcia 5.1% 29.6 % 6.5% Países Bajos 4.2% España Europa del Este Austria 8.4% 3.9% 24.5 % Portugal 3.7% EEUU 3.1% Francia 9.5% Bélgica 3% Irlanda 10.3 % 2.9% Suiza 7.1 % 7 % 1.3% 4.9 %

Reino Unido Resto 2014/2013 2015/2014 2016/2015 22.3% 20.7%

Source: FRONTUR. Spain’s Institute for Tourism and INE Source: Hotel occupancy survey - INE

MURCIA

1MM 365,643 4.6 MM 1,243,320 foreign tourists foreign tourists in spanish tourists spanish tourists in official accommodation official accommodation / + 5.8% / + 7.2% GOLF TOURISM

18 Designed by Accommodations The Region of Murcia has some of the best players in the golf world: 4- and 5-star hotels, 18 top quality golf courses Jack Nicklaus apartaments and villas offering various service facilities Dave Thomas all within a 50-km radius. Robert D. Puttman Seve Ballesteros Why invest Strengths of the Region of Investment in the regional in tourism Murcia as a destination tourist sector

Variety of consolidated Only Spanish region with An analysis of investment products of interest for products: nautical-scuba, 3 wine appellations: , evolution in the tourist sector investors. culture, golf, health, rural. and Bullas. reveals a significant increase The arrival of investors and in capital attraction over in Costa Emergent products with 274 km of coastline, with two the modernization of hotel the last few months. A great potential: sports, seas, Mediterranean and Mar infrastructures translates into contributor to this situation wine-making, gastronomy, Menor, the largest seawater an increase of service and was undoubtedly the industry get-aways, culture, festivals, lagoon in Europe. installation quality, leading upturn, the availability Cálida? “slow” tourism, therefore to an enhanced Port of Cartagena, with an of fiscal incentives and perception of Murcia as a Highly ranked in hospitality, increasing development of services for consultancy and tourist destination amongst safety and value for money cruise ship tourism. Quality of life, pleasant weather administrative proceedings, tourists. the fact that Murcia is all year round. Diverse environments, Excellent potential for senior natural areas and cultural tourism development. increasingly less conditioned heritage. by seasonability, as well as the Non-saturated coastline, Magnificent Mediterranean excellent potential of our main unspoiled beaches. High coastal demand seabed for scuba and regional tourist products, such guaranteed in the snorkeling tourism. as the Holy Year of Caravaca. A sea within a sea. summertime. Excellent infrastructures Thus, it can be concluded Hospitality. Unique destination. High campsite demand in for development of golf that the Region is undergoing Living traditions. the winter months by clients tourism and sportive stages. an upgrade of hotel from Central and Northern infrastructures, not only Large offer in culture, leisur Europe. building new facilities, but also refurbishing some and activities. is one of the five “Holy Cities which were underused and Good connections, short distances. Worldwide”. offering packaged investment