“The drums of crisis have started to roll,” says the vice-chairman of the Alliance for Tourism Excellence, Jose Luis Zoreda. “The outlook is stormy."

Holidaymakers affected by the growing credit crunch have deserted Benidorm, as Spain’s traditionally strong and resilient tourist industry sees a downturn during the peak season.Visitor numbers to beach resorts along Spain’s Costa del Sol dropped by eight per cent in July, as the government makes a pledge of €500 million to upgrade facilities.This unprecedented decrease in foreign visitor numbers in July has meant deserted bars, empty sun loungers and highly-discounted offers extending the length of the Costa del Sol, and has sent a warning signal throughout the industry.“The drums of crisis have started to roll,” says the vice-chairman of the Alliance for Tourism Excellence, Jose Luis Zoreda. “The outlook is stormy. There’s nothing to indicate that the rest of the year will compensate for the fall in business that occurred in July.”Compared with July of 2007, the area saw a drop of eight per cent in the number of foreign tourists in July of 2008. Between April and June, the numbers of holidaymakers from the UK dropped by five per cent, although Spain remains the favourite overseas destination for Brits. French, Italian and Swiss visitors also came in lesser numbers.The areas worst hit have been Andalusia, the Balearics, the Canary Islands, Catalonia and Valencia.Even domestic tourists, typically fiercely loyal to their own resorts, have decreased their holiday spending by thirty per cent, in a trend that increasingly shows “signs of instability”, according to the tourism and industry ministry.

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