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Spain's wildfires: Counting the economic cost

Devastating wildfires are ravaging Spain's tourism, economy and nature. Could the country have done more to prevent the flames?

Wildfires in southern Europe have caused massive destruction and economic losses, hitting Spain particularly hard. In 2022, around 206,000 hectares of forest burned in Spain, with the European Commission estimating the economic impact at €7.1 billion or 4.5% of the country's GDP. This includes both direct firefighting costs and long-term economic consequences like recovery expenses.

Tourism, Spain's biggest industry, suffered severely as the fires disrupted travel and activities in affected regions. Climate economist Sarah Meier warns that regions hit by multiple fires saw growth rates drop by up to 4.5%, and the impact becomes significantly worse when fires reach urban areas, which is rare in southern Europe.

The European Environment Agency reported that in 2017, wildfires burned nearly 990,000 hectares across southern Europe, costing around €10 billion. Spain spends less on wildfire prevention than it does on fighting them, investing €144 million in 2024 compared to €417 million annually for firefighting. Economist Emilio Vizuete Luciano says prevention is far cheaper than dealing with fires once they start.

Spain burned nearly 400,000 hectares in 2025, costing around €7.6 billion to fight. Social activist Maria Inmaculada Marmol Tardaguila criticizes the ongoing reliance on firefighting efforts, arguing it's both "ecological recklessness and fiscal irresponsibility." She suggests removing combustible material from forests as a better solution to prevent future fires.

Written by urgent.news from DW Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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