In 2024, the European tourism sector showed remarkable resilience and growth, despite economic pressures and changing consumer behavior. According to the latest report from the European Travel Commission (ETC), international arrivals increased by 6.3% compared to 2019 and by 6.7% compared to 2023. Overnight stays increased by 5.9% compared to 2019 and by 4.8% year-on-year.
The increase in travel costs on the one hand and increased demand on the other, led consumers to choose destinations with better value for money, to prefer travel during off-peak periods, or to take shorter trips. In 2024, tourists spent 7.8% more across Europe than the previous year, with the total amount reaching €705 billion, three-quarters of which came from Western Europe.
ETC President Miguel Sanz pointed out that, despite challenges such as rising travel costs and changing consumer preferences, the European tourism sector has shown remarkable resilience. The growing popularity of off-peak travel contributes to an even distribution of tourism demand throughout the year.
Off-season performance
It is noteworthy that tourism performance was strongest at the edges of the season (September-October) and during the winter, when prices were lower. This shows that consumers are increasingly turning to more cost-effective travel. A recent ETC survey on the travel climate within Europe provides further evidence, revealing that travel costs remain the main deterrent for European travelers (19%).
However, not all regions benefited equally. Some southern and Mediterranean destinations, such as Portugal, Serbia, Greece, and Montenegro, experienced a slowdown in the fourth quarter, following a strong summer. In contrast, Iceland recorded a 14% increase in arrivals compared to 2019, making it the fastest-growing winter tourist destination, likely due to increased solar activity attracting visitors to the Northern Lights.
Weather events such as floods, storms, and snowfall have affected travel across Europe, leading to delays and cancellations in major hubs such as France, Germany, Spain, and the UK.
Tourism from China and the Americas
The recovery of long-haul travel, particularly from the Asia/Pacific region, continues to lag, with final data for 2024 showing that it remains 5% below 2019 levels. For the Chinese market in particular, arrivals were down 39.6% compared to 2019. This is because European carriers are forced to avoid Russian airspace, resulting in reduced air connectivity.
Serbia was the only destination to report an increase in both arrivals (+7%) and overnight stays (+48%) from China compared to 2019 levels, as it implemented more relaxed visa policies.
In contrast, travel from the US has played a key role in maintaining the momentum of Europe’s post-pandemic recovery, as Americans take advantage of the favorable dollar-euro exchange rate. On the other hand, the report notes that increased economic uncertainties stemming from the new Trump administration may create new challenges next year.
European hotel performance
Hotel performance in Europe remains strong. Growth in average room rates (ADR) and revenue per available room (RevPAR) is rivaling or surpassing leading destinations in the Middle East/Africa region. Occupancy rates increased from 1.3% to 1.6% compared to the previous quarter, reflecting the momentum in tourism since September. However, ADR growth fell slightly compared to the previous quarter (from 4.6% to 4.4%), reflecting a shift in consumer behaviour towards higher-value travel. RevPAR increased by 6% compared to the same period in 2023.
The outlook for 2025
“As we move towards 2025, the tourism industry will continue to face an increasingly complex environment, with heightened geopolitical and economic uncertainty. This highlights the vital need for resilient tourism strategies so that destinations can prepare rather than react to potential crises,” says Jennifer Iduh, Head of Research & Insights at the European Travel Commission.
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