Spain Changes in LRAS and SRAS - Micah Weinstock

    Spain is currently in somewhat of an economic crisis. The problem is that inflation is up 10.5% on the year. As a result of this, prices are going up. Energy bills cost 70% more than the start of the year. This is a quantitative problem as there are now more people competing for a smaller supply. This is a result of the collective Western response to the invasion of Ukraine, wherein many countries will no longer conduct business with Russia. Therefore, taking away Europe's largest energy source creates problems in the supply chain. 

    On the opposite side though, Spain is having a somewhat-positive, somewhat-negative in the price of short term accommodation (AirBNB, hotels, etc). The price has jumped up, at 42% more on the coast and 17% more in cities throughout the country. The reason for this is twofold. Rise in demand and rise in costs. There are now more travelers looking to enter the country than there were last year by a fairly large margin. Therefore, many more people now are fighting for the same hotel rooms. Getting to the country too will also be difficult as RyanAir and easyJet employees will be striking in the country, allowing less of these flights to come through. The last part of this that raises the cost is that there is more incurred cost on the owners now. It costs more to power the building on things such as A.C. or the lights. 






 https://www.ft.com/content/3af9cfb0-df3d-4e64-9411-7747515577df

https://www.express.co.uk/travel/articles/1632029/spain-holidays-costa-del-sol-hotel-prices-cheapest-destinations

https://www.express.co.uk/travel/articles/1649521/spain-holidays-alicante-majorca-canary-islands-hotel-prices-august-2022

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