Regional and Sectoral Economic Studies Vol. 10-2 (2010) SECOND HOMES IN THE SPANISH REGIONS: EVOLUTION IN 2001-2007 AND IMPACT ON TOURISM, GDP AND EMPLOYMENT GUISAN, Maria-Carmen * AGUAYO, Eva Abstract We present a provisional estimation of the evolution of second homes in the Spanish regions over the period 2001-2007, using this variable as one of the most important indicators of non hotel tourism, and compare with trends in the previous decade. We cite several studies and information related with the impact of second homes in Europe and North America. One conclusion regarding the number of second homes built in Spain during the last years is that, despite the housing boom, the annual percentage increase in 2001-2007 was very alike to the previous period 1991-2001. Spain is a country with very high demand for second homes, both for Spaniards and foreigners. We present a comparison of the number of overnight stays in second homes and hotels which show the great economic importance of both types of tourism. Finally we estimate several econometric models that take into account the impact of second homes on regional production and employment. Keywords: Tourism other accommodation, Spanish regions, regional economic development, second homes, employment, services sector, building sector, econometric models of tourism. JEL codes: L83, R1, R11, R15, R21, R31, O52 1. Introduction The aim of this study is to analyze the evolution of second homes building in the Spanish regions over the period 2001-2007 and the positive effect of second home stays on tourism, real Gross Domestic Product (GDP) and employment. Section 2 present a summary of economic literature on second homes in Spain, Europe and North America, which is more detailed in Annex 1. A common feature of these studies is to point to the convenience of increase statistical data related with this tourist sector which reaches great importance in several countries, being Spain one of the most outstanding ones in this regard. Section 3 present our estimation of second homes built by region in Spain for the period 2002-2007 and we compare the evolution with the past values from Census statistics of INE for years 1991 and 2001. We analyze the importance of second homes on regional tourism comparing a provisional estimate of annual overnight states in those dwellings with annual overnight stays in hotels. We find that, even with a moderate estimation of average overnight stays per second home, the comparison shows that the economic impact of this type of tourism may so important, or even more, than hotel tourism in many regions. The most outstanding regions by the total number of estimated overnight stays (non hotel and hotel) are Andalucia, Cataluña and Comunidad Valenciana, followed by Baleares and Canarias. Section 4 present some econometric models to analyse the impact of second home tourism of Spain on real GDP and employment in building and services sectors. Section 5 present some comments on the housing boom in Spain and its relation with the economic crisis of years 2008-2010, * Maria-Carmen Guisán, mcarmen.guisan@usc.es , y Eva Aguayo, eaguayo@usc.es , Econometrics, Faculty of Economics and Business Administration, University of Santiago de Compostela (Spain)