Rising Spanish holiday costs are hitting timeshare owners as maintenance fees climb

Spain remains one of the favourite holiday destinations for Brits, but rising prices and new entry requirements could change the appeal for some travellers. For timeshare owners, however, switching to a cheaper or easier option isn’t always possible.

Rising holiday costs in Spain

In April 2022, hotel prices in Spain jumped by 36% year-on-year, according to a Reuters report, with inflation and higher energy costs blamed. Many owners are now asking whether the same pressures will feed through into Spain timeshare maintenance fees.

Why timeshare maintenance fees may rise too

Timeshare resorts face many of the same operating costs as hotels, so they are unlikely to be insulated from increases in utilities, staffing and general running expenses. As a result, experts expect timeshare companies to pass costs on to members through higher annual maintenance fees. "Especially when you take into account the resorts' track record of 'profiteering' from outside factors," says Andrew Cooper, CEO of European Consumer Claims (ECC).

€100 per day proof of funds

Another factor affecting travel to Spain is a rule introduced by the Spanish Ministry of the Interior, which states that visitors from outside the EU must be able to show they have enough money to support themselves during their stay.

This is widely reported as €100 (£85) per person, per day.

Unaffordable for many families

That means a family of four travelling to Spain for two weeks would need to show access to €5,600 (£4,730).

Many Brits simply don’t have that level of savings available, which could make travel plans unrealistic.

Timeshare owners could feel the impact most

The same issue may apply to timeshare owners, many of whom may not meet the requirement.

In practical terms, they may face an unpleasant choice: pay for a Spain holiday they may struggle to take, or travel and risk being turned away.

Tourist tax in the Costa del Sol?

On top of that, provinces on the Costa del Sol are considering a tourist tax, expected to be around €1.50 per person, per day. Why?

The suggestion is that it would attract higher-quality tourists. Aside from being distasteful (as though spending more makes someone “higher quality”), it also feels out of step with the current economic climate.

Not great timing for a new tax

Carlos Perez-Lanzac, president of the Andalusian Tourist Housing Association, said: "Entering a potential recession... I do not think it is the time to raise a tax as it may go against the competitiveness of Malaga as a destination."

Airport queues and extra checks

Then there’s the U-turn on a potential move to ease airport congestion.

Until recently, UK travellers were expected to be able to use automatic e-gates on arrival. Now, passports must be stamped, which can increase delays at the border.

Brits may also need to show additional documentation, such as proof of accommodation and an onward or return flight.

Alternatives for regular holidaymakers

For many travellers, the solution is simple: choose a different destination. Popular alternatives such as Greece, Portugal and Bulgaria offer great beaches and plenty to do.

Why timeshare owners can’t just switch

For timeshare owners, it’s rarely that straightforward.

When many people bought their membership decades ago, it was widely seen as a good option.

Now, timeshare can feel outdated, and many holidaymakers find better value by booking regular holidays.

Timeshare exchange systems often disappoint

In theory, owners can swap to a different resort using a timeshare exchange system. In practice, this often works poorly, meaning owners tied to Spain may find they have limited realistic alternatives.

Limited options for Spain timeshare owners

"Timeshare owners in Spain have pretty limited options," explains Andrew Cooper. "They have to pay their maintenance fees whether they holiday or not. They are faced with the stark choice of not using their membership, while still paying for it, or to use it and accept such financial or bureaucratic obstacles as the Spanish authorities see fit.

"If, like a high percentage of Brits, they don't have the required amount of money in the bank, they will have to hope they don't get stopped and asked for proof of funds."

Is it time to leave your timeshare?

Many timeshare owners don’t realise they may be able to relinquish their timeshare contract — or who they can trust to help them do it properly.

Additionally, many timeshare contracts sold in Europe over the last two decades include illegal elements, which may mean owners can claim compensation.

If you’d like to discuss your options for leaving a timeshare commitment the right way, or about claiming compensation for an illegal timeshare contract, you can contact the Timeshare Advice Centre for a free, confidential consultation.