Quote:
Originally Posted by v4 media
Because Spain gets 20 million scum tourists, The hotels make money because of volume.
Massive concrete blocks that have killed the coast.
Italy gets 2 million but they spend the same amount of $$ in smaller hotels.. What would you prefer?
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First I do not believe 2 million people spend as much as 20 million people. Hotel prices are twice, not 10 times more expensive.
Second, you do not get my point. My point is:
Same level hotels in Spain cost 30eur and in Italy it cost 60eur.
So any smart investor would go and build same hotel in Italy and charge 50eur. That would be cheaper than all the rest that charge 60eur. And it would turn way more profit than same hotel in Spain that charges 30Eur.
Lets say operating cost is 25Eur and room cost is 30eur in Spain =5 eur profit per room.
So in Italy it would be 25eur cost and 50eur room price = 25 eur profit per room. Ok lets say in Italy operating cost would be higher, 30eur per room, still it would leave 20eur per room profit.
So my question is how come nobody is building hotels in Italy that would charge less than average hotel in Italy and would still make more profit than same hotel built in Spain?
ps: I checked that Spain gets 56 million tourists and Italy gets 46. Did you take out 20 million poorest Spain tourists and compared with 2 million richest Italy's tourists? In that case yeah they might spend 10 times more, but whats the point of that? You can do similar data vica versa.