In the third quarter, economic contraction has remained at a 0.4% rate, the same as during the second quarter, as opposed to quickening the economic downfall. This is still of course unacceptable, as it becomes more and more likely that the Spanish government misses its budget-deficit target.This dire domestic outlook appears strikingly in the tourism indicators. In the economy sector hotels, which tend to attract local clientele; there was a 10 points drop in occupancy rates. This is partially explained by Spain’s unemployment now at nearly 25%. Spain’s inhabitants have had to survive off of savings and find disposable income severely reduced, logically cutting way back on unnecessary travel expenses.As consumer demand is sapped, tax revenue are also depleted, leading Spain's central bank to repeat a warning that tax-revenue shortfalls aren’t helping meet the budget goal. But faced with this high unemployment, asking for more tax revenues at the same time as demanding austerity measures which lower social supports is not going over well with financially crippled Spaniards. The strained relation between the State and society in Spain over austerity has not helped boost tourism either. Global RevPAR has dropped 3%, showing that despite better foreign finances, Spain is still not a choice destination. During an anti-austerity demonstrations in September, dozens of people were injured while trying to storm Parliament. "We are here so that they know that we know this is a regime that doesn't represent the interests of the people," said Rafael Martínez, a 48-year-old waiter. This is not the ideal climate for tourism. Where Spain has seen some improvement is Bilbao. Bilbao occupancy rates went up 9 points, whereas all other tourist cities included saw decreases.This can be explained by the global trend towards urban tourism, as Bilbao is the major metropolitan center in the Basque region...