Even though prices were going up and causing inflation in 2023, tourism in Europe bounced back and almost reached pre-pandemic levels.
Based on a report from the European Travel Commission (ETC), the number of foreign tourists visiting and the nights they spent were only slightly below that in 2019. This suggests resilient travel demand, and this trend is likely to continue in 2024.
Intra-European travel propels industry comeback
The revival is fueled by strong travel within Europe, especially from major markets like Germany, France, and the Netherlands.
Southern European vacation spots are still on top, thanks to favorable weather that makes the travel season last longer.
Serbia saw arrivals surge 15% alongside Portugal, Montenegro, Türkiye, and Malta. Their popularity for all-inclusive and affordable holidays has attracted price-sensitive travelers.
Other standouts are Iceland, which saw a 12% increase in visitors despite volcanic activity, and the Netherlands, where the number of tourist nights rose by 16%, suggesting that people stayed for longer periods.
In contrast, destinations bordering Russia like Lithuania, Latvia, Estonia, and Finland lag behind.
Resilient European travel amid economic pressures
Europe’s tourism rebound has occurred against high inflation affecting the industry and tourists.
In Q4 2023, inflation jumped to 3.4%, especially impacting flights, package deals, and hotels.
While increased prices have squeezed household budgets, most travelers remain undeterred.
Pricing pressures eased slightly in late 2023 but stayed elevated versus pre-pandemic.
Chinese arrivals gradual, North Americans rebound
Chinese tourists accounted for 13% of Europe’s long-haul arrivals in 2019. Since reopening, their return has been slow but steady.
Chinese arrivals in 2023 are 67% below 2019, compared to the 22% average for other long-haul markets. Beyond capacity issues, the Chinese remain risk-averse, preferring domestic trips.
Arrivals from China should continue recovering in 2024, forecasted 39% below 2019.
In contrast, North American markets like the United States and Canada rebounded robustly. Over 65% of European destinations reported more American arrivals and nights, while over half saw the same for Canada.
North American airlines have recently introduced new booking systems that allow travelers to seamlessly combine flights and train travel in Europe. This promotes more environmentally friendly ways to explore the continent.
Gradual improvements amidst uncertainty
European tourism has been doing well despite challenges, but the ETC stressed the need to make tourism more sustainable because more people want to travel.
Miguel Sanz, the ETC President, said that returning to pre-pandemic levels means putting a lot of pressure on tourist destinations.
The ETC is working on ways to measure how tourism affects society, the environment, and the economy. This will help them develop plans that make tourism grow while also balancing growth and responsibility.
Tourism rebound to aid ETIAS implementation
Europe’s tourism revival is expected to help with the launch of the European Travel Information and Authorization System (ETIAS) in 2025.
As more people start visiting Europe again, the revenue from ETIAS applications will be used to keep the system running smoothly and ensure everyone’s safety.
With tourism recovering faster than expected, officials have a chance to fix any problems with ETIAS before it is fully up and running. This means ETIAS should work seamlessly when more travelers start using it in the future.
Immigration policies adjusting to tourism’s return
Resurging tourism will make European nations rethink their rules on immigration and borders, which were relaxed during the pandemic.
To capitalize on the industry’s renewal, countries must process visas quickly and have smooth entry procedures to avoid delays.
Planning immigration strategically in tourist hotspots can also help fill job gaps in hotels and other service industries.
As travel continues rebounding towards pre-COVID trends, immigration policies will likely continue to change to match the new needs.
Sustainable growth critical for tourism’s future
As European tourism bounces back to its pre-pandemic levels, the industry needs to pursue responsible growth for its future success.
With travel demand projected to keep rising, investments in sustainability must accelerate to preserve the very places that travelers cherish.