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Hospitality Net
06-07-2025
- Business
- Hospitality Net
European Tourism Holds Steady in Q2 2025, Driven by Resilient Consumer Demand and Global Interest
Europe's tourism sector showed a steady but more moderate performance in Q2 2025, with arrivals up 3.3% and nights down 0.7% year-on-year. Off-season demand for sun and beach holidays is rising, likely driven by the shift in Easter holidays and evolving travel preferences. European destinations experienced renewed interest from China, alongside continued strong arrivals from the US. Europe's tourism sector maintained a solid performance in Q2 2025, highlighting its resilience amid ongoing economic pressures and geopolitical uncertainty. According to the European Travel Commission's latest report, 'European Tourism: Trends & Prospects', international tourist arrivals rose moderately by 3.3% compared to the same period in 2024. Meanwhile, nights spent fell slightly by 0.7% — a decline likely driven by calendar effects, including the shift of Easter to late April and changes to school holiday schedules, rather than a drop in demand. Elevated travel-related prices are likely to weigh on consumers' willingness to spend, but research also shows that overall travel expenditure is expected to be 13% higher in 2025 than in 2024. As more travellers are looking for value for money, lesser-known destinations with competitive prices might benefit, reducing overcrowding pressure in tourist hotspots. Commenting on the report, ETC President Miguel Sanz said: The past months have brought new challenges to the tourism sector — rising economic pressures, shifting geopolitics, and growing concerns over unbalanced tourism in some tourism hotspots. Yet Europe's destinations continue to show remarkable resilience. To sustain this momentum, we must double down on innovation and invest in more sustainable, inclusive models of tourism that respond to locals' needs and visitors' expectations. Sun and beach holidays drive off-season demand Searches for spring getaways increased by 36% year-on-year among European travellers [1], indicating growing demand for off-season travel, with most seeking sun and beach destinations. While the shift of Easter to late April contributed to this rise, the trend also reflects changing traveller preferences — particularly the desire to avoid peak heat and overcrowding during the summer months. Malta saw a 19% increase in arrivals, supported by enhanced connectivity, while Cyprus posted a 16% rise, driven by its favourable location and year-round appeal — both destinations growing from a lower base. Larger summer destinations such as Spain (+7%) and Portugal (+3%) also benefited from this trend. Central Eastern European destinations, including Latvia (+16%), Lithuania (+15%), and Hungary (+14%), also noted strong year-on-year increases in arrivals, likely due to increased connectivity. This demonstrates a continued path to recovery from the pandemic and the impacts of the Russo-Ukrainian war. Price sensitivities among travellers, but spending on the rise Costs for many tourism-related services have risen from last year, with further increases likely during the summer months of July and August, which may impact travellers' destination choice this summer. As the high season in the Southern/Mediterranean region approaches, the price of international flights to the area has risen 5% in the first four months of 2025 year-on-year, while the cost of international package holidays is up 7%. At the same time, Southern European destinations — including Spain, Cyprus, and Malta — reported substantial increases in tourism revenue in the first months of 2025. This suggests that travellers are spending more during off-peak travel months. Overall, tourist spending across Europe is expected to rise by approximately 13% compared to 2024, with growth outpacing arrivals and indicating a higher average spend per trip. Long-haul travel shows resilience, despite global uncertainty Travel from the US to Europe remains higher than in 2024 across most reporting destinations, despite concerns about transatlantic demand. Year-on-year growth in overnight stays is particularly notable in the Nordics, with nights up 35% in Norway and 24% in Denmark. Southern European destinations have also seen solid gains in US arrivals, including Croatia (+18%), Montenegro (+17%), and Greece (+16%). Moreover, the economic uncertainty has likely contributed to reduced airfares on several routes — including those between the US and Spain, Italy, and the UK — which may support continued growth in American travel to Europe this summer. Travel from China is showing stronger signs of recovery in 2025, with all reporting destinations recording increases in nights or arrivals compared to the same period in 2024. Demand for smaller destinations such as Croatia (+7%), Estonia (+15%), and Romania (+20%) has picked up in Q2, while recovery for larger destinations remains ongoing and is expected to improve further with enhanced air connectivity from Chinese cities to Paris and Madrid. The return of Chinese visitors to Europe is expected to continue, supported by rising incomes, better flight connectivity, and favourable travel policies. This trend may also be reinforced by a reluctance among Chinese travellers to visit the US in 2025, due to geopolitical tensions, increased visa scrutiny, and broader security concerns. [1] ForwardKeys, link Full report can be downloaded here. About European Travel Commission Established in 1948, the European Travel Commission is a unique association in the travel sector, representing the National Tourism Organisations of the countries of Europe. Its mission is to strengthen the sustainable development of Europe as a tourist destination. In the last several decades, ETC has positioned itself at the forefront of the European tourism scene, establishing its expertise and building up partnerships in areas of tourism, based on promotion, market intelligence and best practice sharing. View source
Euronews
06-02-2025
- Business
- Euronews
Destination Europe Summit: Balancing tourism growth, regulation and investment
Guests at the summit discussed the future of the tourism industry - balancing growth, regulation and sustainability investment. Miguel Sanz, president of the European Travel Commission, took to the stage in Brussels after an introduction from Euronews' Meabh McMahon - stressing the importance of travel to Europe's 'lifestyle, culture and connectivity'. He spoke of the effect of digitalisation of the travel sector and argued that more attractions and destinations must be available to book online. Presenting Europe as 'the world's favourite destination', Sanz said the region must strive to retain its competitive edge. Sanz nonetheless highlighted the risks that come with large numbers of visitors: 'Overtourism is putting strain on infrastructure, housing costs, and local communities.' Tourism investment and strategy for 2026 Apostolos Tzitzikostas, the European commissioner for sustainable transport and tourism, reasserted the importance of tourism for Europe, calling it a 'powerhouse for economic growth, for job creation, for social development'. He outlined the EU's new tourism strategy for 2026, which will include a focus on: • Climate adaptation and sustainability funding • SME digital transformation, including AI adoption • Infrastructure investment and visitor management He emphasised that small and medium-sized enterprises (SMEs)—which form the backbone of Europe's tourism sector—must know how to access funding opportunities to remain competitive. Moreover, he noted how the European Commission has pledged to simplify financing programs. 'We need to make things simpler, and we will,' he stated. CEO warns of overregulation hindering competitiveness Glenn Fogel, CEO of raised concerns about regulatory hurdles slowing down Europe's competitiveness. Fogel also addressed overtourism, suggesting that some destinations may need to explore pricing mechanisms to control visitor numbers, but he stressed that governments—not private companies—should lead on this issue. 'As economies grow, overtourism is only going to get worse,' he warned, highlighting destinations such as Paris, Amsterdam and Venice. New business models and revenue strategies A panel featuring industry executives and policymakers explored alternative revenue models for tourism management: Nikolina Brnjac, member of the European Parliament, highlighted the need for better destination management plans, citing housing shortages and infrastructure pressures from short-term rentals. She highlighted how Croatia has introduced a tourism tax on day visitors to ease congestion. Daniel Attard, member of the European Parliament, stressed that local communities must be part of tourism decision-making, as not every region welcomes mass tourism. Magda Kopczynska, EU Commission director general for mobility and transport, discussed aviation's shift to sustainable fuels, noting that while alternative fuels exist, high costs and production limitations are slowing adoption. Olivier Jankovec, director general at ACI EUROPE, meanwhile, called for greater EU support in scaling up sustainable aviation fuel adoption to ensure Europe isn't reliant on energy imports. Travel demand at record highs George Simon, EVP market development head for Europe at Mastercard, highlighted in a presentation that 2024 was a record-breaking year for travel, with 7.4 billion consumers travelling globally. Notably, 83% of surveyed Chinese travelers expressed a desire to visit Europe, reinforcing the continent's enduring appeal but also raising concerns about pressure on tourist hotspots. Emerging travel trends indicate that leisure stays are lengthening, with the average trip extending by two extra days, benefitting local economies. Additionally, the executive highlighted the 'swift lift' effect, where events, like the Taylor Swift concert, boosted economies across Europe and subsequently underscored the power of organising such events in different destinations. Managing tourism growth responsibly The final panel discussion centered on tourism management strategies. A director from UN Tourism, Sandra Carvao, in charge of market intelligence, policies and competitiveness, stressed the importance of measuring community perceptions, noting that benchmarking data is crucial to addressing seasonality issues and ensuring tourism remains a net positive for local populations too. Paul Kelly, CEO of Fáilte Ireland, pointed to Ireland's high tourism approval ratings, with both locals and national stakeholders maintaining a positive outlook on the sector. He emphasised the need for ongoing engagement with communities to keep tourism development aligned with local interests. Speaking on demographic shifts, Kelly referenced 'silver tourism', highlighting the growing market of travellers over 55 and the industry's need to adapt infrastructure and services accordingly. Policy and infrastructure challenges Sérgio Gonçalves, member of the European Parliament (S&D), echoed overtourism and sustainability concerns, noting how Madeira faces similar challenges to other popular destinations. 'A great destination is only great if it also provides a high quality of life for locals,' Gonçalves said, emphasising the need for robust infrastructure and tourism policies. He proposed reducing airport charges and expanding off-season events as potential strategies to spread visitor traffic more evenly throughout the year. Sustainable aviation fuel (SAF) was another key challenge for island destinations, with Gonçalves stressing the need for better energy storage solutions and the importance of EU support in scaling up SAF production. Marlène Bartès, policy officer for tourism at the European Commission, warned against using tourism as a scapegoat for broader issues, such as housing shortages, urging a balanced approach that learns from regions experiencing overtourism. Private sector's call for change Zina Bencheikh, EMEA managing director at Intrepid Travel, argued that Europe's tourism infrastructure is not currently aligned with sustainable business models. She stressed the need for structural changes to ensure long-term viability, particularly for SMEs that rely on peak-season earnings to survive through the off-season. 'The European tourism structure has been built in a way that does not fit our style,' she said. Bencheikh also noted that catering for travellers over 55 is the fastest growing segment for Intrepid travel. In his closing remarks, Eduardo Santander, the CEO of the European Travel Commission, thanked attendees for their insights, underscoring the importance of collaboration in shaping the future of tourism. 'This momentum cannot be wasted. It must drive us forward to create a more sustainable tourism landscape,' he said. 'We want to be the best—not just in sustainability, but in accessibility and every aspect of tourism.'
