Why do everyone go to Spain for holidays?

Italy's a bit expensive to holiday. I've been eyeing a first trip there but I haven't found any value.

Aye. Accommodation, eating and drinking and standard supplies are surprisingly dear in Italy.

In Rome, hostel accommodation is €20-25 a night minimum, more in high season. You could pay €40+ a night which is frankly obscene for the Mediterranean. I paid €21 for a bed on a Friday night in February. That same bed is €43 at the end of this month. Two courses (piatti) and wine in a cheap osteria or trattoria costs €20 minimum per head. Pizza al taglio is €3-5 a slice. A beer in a corner bar is around €2.50 for ~250ml, another price that shocked me in comparison to Spain. One thing that is cheap and good in Italy is coffee in local bars. €1 max for an espresso. Plus the house wine in budget restaurants is good and cheap.

In Spain/Portugal, it really varies where you go. Summer in Barcelona can push Italian prices whereas Madrid and Andalusia are a fair bit cheaper. You can pay €30-35 for a boutique hostel in Barcelona and under €20 in Madrid. Lisbon is cheap for some bizarre reason because it is SIMPLY EXCELLENT. In Madrid/Andalusia, a caña is about €1.50, patatas bravas/another small tapa either €2 or free depending where you are. In Lisbon a small beer won't be much more than €1. In Spain a lunchtime three course meal can be as low as €10 including a glass of wine. In most of Spain and Portugal the prices absolutely destroy those of Italy for similar quality.