Andorra Tourism: A Year of Recovery and Growth
In the world of tourism, anything can be a hindrance,“ admits Betim Budzaku, general director of Andorra Tourism. First, it was the pandemic, and now the war in Ukraine. However, the country has managed to reinvent itself, and 2022 is closing as a year of recovery, with record numbers in the tourism sector. „If there are no radical changes in the global economy,“ Budzaku predicts „a solid and bright future for tourism.“
Budzaku took over as the director of Andorra Tourism ten years ago. How has the sector changed during this time?
Starting in 2012, the goal was to ensure that people stayed at least one night in Andorra. The results have been truly remarkable: in 2012, we generated 6.55 million overnight stays, whereas now we exceed 10 million.
Who deserves the credit for this success?
It is not solely the merit of Andorra Tourism, but also of the private sector that collaborates with us in defining the country’s tourism offerings. We communicate what we have to offer.
Can we maintain this momentum?
We are talking about figures that are challenging to sustain. From November 1, 2021, to November 30, 2022, we generated 10,057,675 overnight stays. Moreover, in December, there was a 35% increase in hotel nights sold compared to the previous year.
Are you concerned about overcrowding?
We are aware that exceeding the 8 million visitors we receive annually is not in anyone’s interest. However, we have room for growth in terms of total tourists. Andorra can have more than 10 million overnight stays per year because we are not always at 90% capacity. There are over 47,000 beds, and there are months where this occupancy rate needs to be different.
For example?
The month of May is still a challenging season because there are no holidays yet, and if there are any, there are no tourist attractions. This is what we are trying to balance.
How has the war in Ukraine affected tourism?
We have lost more than 350,000 overnight stays due to the war. However, it is true that we did not have this market during the pandemic, and we balanced it out with local tourism. This serves as a lesson for Andorra to open up to other markets and have alternatives in case one market encounters issues.
Which markets are you considering?
Asia and America. Starting in 2024, we will have a larger budget thanks to the tourist tax. This will allow us to have more targeted communication and reach alternative markets to compensate for the loss of Russian tourists, which is currently balanced by local tourism.
Do tourists from distant countries stay longer?
It is a mix of the characteristics of the countries of origin and the destination’s offerings. If you provide more leisure options for tourists, their stays automatically become longer. In Andorra, we have increased the average length of stay because people have discovered things they did not know before, which is the reason for staying longer.
Is it challenging to compete with neighboring countries?
We have less money compared to other countries where tourism is significant, such as France and Spain. This means that while we spend a lot, we are competing with countries that spend even more, and the market is the same.
Are shopping still one of the main reasons for traveling to Andorra?
The reason for a trip cannot be shopping. Culturally, this is not normal for a tourist.
But it has been like that for many years.
Because there was a significant price difference, but now we have to realize that this model has ended, and we need to find new ones. Shopping will always be a highlight, but it should be a differentiating factor in the experience, not the reason for visiting a country because it is not natural.
Are you concerned that the lack of snow could jeopardize Andorra’s tourism model, which is ultimately a winter destination?
Yes, but this is not an exclusive problem of Andorra. We cannot be fatalistic, but we need to prepare. Skiing is a crucial added value in the tourist experience, but a country like Andorra, where 92% is nature, has the capacity to differentiate itself with other attractions.
This year, Cirque du Soleil celebrates its tenth anniversary. Will there be an eleventh?
It will depend on this show. If the experience is good, we will repeat it. For now, the return is spectacular, which gives us absolute peace of mind to define the future of Cirque. This year, without the Braus square, we gain space, but all tickets will have seats, and we still need to define the capacity.
Do you miss the Multifunctional in times like these?
Always! Many things have happened, but that does not mean it is not a priority in the future. A country with 8 million visitors needs a place for events. It is a crucial and essential building to improve Andorra’s offerings.
In conclusion, Andorra Tourism has faced challenges such as the pandemic and the war in Ukraine but has managed to adapt and thrive. With a focus on diversifying markets, enhancing the tourist experience, and preparing for the future, Andorra is poised for continued success in the tourism sector.