The city of Marbella is a popular tourist destination.
The high-end property sector of the Costa del Sol is urging the government to prioritize investment in infrastructure in order to secure a stable water supply. This initiative is prompted by concerns that the current drought in southern Spain may negatively impact sales and rentals. The DOM3 business group, consisting of nearly 40 companies in the luxury villas industry, has emphasized their commitment to responsible water usage in all of their operations. During their recent meeting, they launched a petition directed towards public authorities requesting the development of a solution to address this issue.
According to Charly Simon, the president of DOM3, the organization is fully cognizant of the water scarcity issue. All members dedicate themselves to optimizing the use of this resource, but it is also crucial for the government to take action and develop the required infrastructures. Simply relying on rain is not a viable solution for a problem that requires long-term planning.
Despite the fact that the majority of clients in the high-end real estate industry are foreigners who possess second or third residences on the Costa del Sol, they are becoming more cognizant of the current situation. However, the drought does not currently have an impact on the market or investments in the region. According to DOM3, it is crucial for the various administrations to continue enhancing the current water infrastructure and developing new ones in order to sustain the tourism industry and generate prosperity in the area.
Pools for Swimming
A major concern in the luxury industry is the potential impact on sales and rentals due to the water shortage if left unresolved. According to a property administrator in Marbella, clients who pay 6,000 euros for a night at a villa expect continuous access to water. This demographic is particularly demanding, especially when it comes to essential services like water.
However, the issue extends further than just residential tourism and renting out properties. In a similar manner, the upscale hotels have also shared their apprehensions. Ignacio Gomez-Escolar, the director of Hard Rock Hotel Marbella, expressed his concerns by stating, "We are greatly concerned that the situation will worsen and, eventually, we will be prohibited from using our swimming pools during the summer."
According to Gomez-Escolar, such a situation could have serious repercussions as it could lead to tour operators, particularly those from the UK, which is our primary market, canceling reservations and redirecting their tourists to places like Turkey.
Consortium of Public and Private Entities
In the cities of Marbella, Estepona, and Benahavis, the luxury industry is a major source of income. Its impact on the local economy of these three municipalities is significant. For instance, in 2023, the fashion stores in Puerto Banus alone recorded a turnover of 282 million euros.
During the November 2023 edition of the annual Market conference held by the Leading Property Agents of Spain (LPA), CEO Bernard Fay from UHY Fay and Cou emphasized the importance of establishing a "public-private consortium" to engage both companies and public administrations in developing a strategic plan.
According to him, the goal is to establish the vision for the city in the upcoming 15 years. Fay emphasized the importance of having effective water infrastructure to address both water scarcity and transportation issues, in order to ensure the provision of these services to the public.
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