Andorra Tourism Hits Record Highs Amid Cost and Staffing Woes

Andorra's tourism sector posted strong results in the first half of 2025, with record overnight stays and visitor numbers, though businesses warn of rising costs and staffing shortages that could curb future growth.

According to a recent business survey by the Andorran Chamber of Commerce, 2.1 million tourists stayed overnight in the country, up 5% from the previous year. Hotels and aparthotels recorded 3.73 million overnight stays—the highest total since 2011. Visitor arrivals and stays in May and June rose nearly 20% compared to the same period in 2024, underscoring ongoing efforts to reduce seasonal fluctuations.

Proximity markets drove the gains, with Spanish visitors up 15.6% and French visitors increasing 6.5%, including during off-peak months. Long-haul tourism fell 18.3% from 2024 levels, though volumes remain 64.5% above pre-pandemic figures from 2019.

Despite these achievements, operational challenges loom large. Among accommodation businesses, 64% cited higher prices for products and supplies as their top issue. A 52% share pointed to elevated operating costs, while half reported a shortage of skilled workers—the highest rate in three semesters. Weaker demand affected 36% of firms, signaling fragile consumer spending amid positive overall indicators.

Looking ahead, hoteliers and accommodation operators expect activity to hold steady but anticipate a slowdown, with sales volumes stabilizing at current levels and a slight drop in employment. This marks a shift from earlier optimism, as the sector adjusts to tighter conditions.

The Chamber of Commerce called for a rethink of Andorra's tourism model, emphasizing quality improvements, further desesionalization, diversified offerings, better-trained staff, and data-driven tools to track trends and tailor visitor experiences. These steps, it argued, would bolster long-term competitiveness in southern Europe.

The tourism surge aligns with broader economic strength, including 2.2% GDP growth in the second quarter of 2025. Construction and services also contributed, but global uncertainties, labor gaps, and cost pressures demand coordinated action to sustain momentum.