Paris has retained its title as the world’s most attractive city destination for 2023, according to Euromonitor International’s annual Top 100 City Destinations Index.
The global market research firm compared 100 cities across 55 metrics covering economic performance, tourism, infrastructure, policy, health and safety, and sustainability.
Europe Dominates Top 10
Seven of the top 10 cities in 2023 are in Europe, with Dubai (2nd), Tokyo (4th), and New York (8th) as the only non-European destinations.
Tokyo entered the top 10 for the first time, moving up to fourth place thanks to improved tourism infrastructure like easing COVID-19 regulations and a weakening yen attracting more visitors.
While Europe commanded the top spots, Asia saw strong representation further down the top 20 list with Singapore (11th), Seoul (14th), Osaka (16th), and Hong Kong (17th).
The top 20 cities overall are:
- Paris, France
- Dubai, United Arab Emirates
- Madrid, Spain
- Tokyo, Japan
- Amsterdam, Netherlands
- Berlin, Germany
- Rome, Italy
- New York, United States
- Barcelona, Spain
- London, United Kingdom
- Singapore
- Munich, Germany
- Milan, Italy
- Seoul, South Korea
- Dublin, Ireland
- Osaka, Japan
- Hong Kong, Hong Kong SAR
- Vienna, Austria
- Los Angeles, United States
- Lisbon, Portugal
Newcomers Enter Top 100
This year saw four newcomers enter Euromonitor's Top 100 list: Washington DC (48th), Montreal (68th), Santiago (88th), and Vilnius (92nd).
Their addition was thanks to improved tourism performance.
Developed markets continued to dominate the top spots as most leading cities come from mature economies.
International Travel Rebound Strong in 2023
According to Euromonitor, international travel has rebounded strongly in 2023 with a 38% increase in trips, projected to reach 1.3 billion by year’s end.
This sentiment was echoed by the United Nations’ World Tourism Organization, which reported that 2023 in international travel will see recovery of almost 90% of pre-pandemic levels.
A key factor was China reopening borders and removing quarantine rules, bringing back Chinese outbound tourism.
Global tourism spending is forecast to hit $1.7 trillion in 2023.
In terms of international arrivals, Istanbul saw the highest year-on-year growth at 26%, followed by London at 17% and Dubai at 18%.
Hong Kong (up 2,495%) and Bangkok (up 142%) saw the biggest expansions since they were among the last Asian hubs to reopen post-COVID.
Sustainability and Overtourism Concerns
Euromonitor flagged sustainability and overtourism as ongoing concerns for global cities.
Travelers now seek eco-friendly amenities like renewable energy, green construction, and emission-free transport.
Cities are enhancing sustainability to increase competitiveness.
However, overtourism brings challenges like environmental damage and effects on local communities.
Some cities have imposed restrictions or taxes to limit tourists. Others promote alternative destinations to disperse travelers.
Managing growth while implementing sustainable practices remains an important balancing act.
Outlook Muted by Recession Risk
Looking ahead, Euromonitor expects cost-of-living pressures and inflation to curb tourism demand in 2024-2025.
Consumers will likely opt for cheaper, closer-to-home destinations.
Alternatively, travelers will do their best to travel to destinations on a budget.
Geopolitical volatility also poses a risk. A potential global recession could significantly dampen tourism's rebound.
What It Means for EU Visitors
The report’s focus on city destination competitiveness has implications for EU visitors in the ETIAS era.
ETIAS, the European Travel Information and Authorization System, launches in May 2025.
Citizens of over 60 countries will need the online ETIAS pass to visit Europe’s Schengen Zone.
With the ETIAS requirement approaching, rankings like Euromonitor’s indicate which cities may become more popular for EU-bound travelers from ETIAS nations.
The analysis can help ETIAS hopefuls research which urban hotspots to include on future Europe itineraries.
Impact on EU Immigration Policy
The index also suggests how improving city competitiveness could influence EU immigration policy.
EU nations must attract high-skilled talent to boost economic growth.
Meanwhile, aging populations require working-age migrants.
Top-ranked global cities are magnets for the migrants and expatriates EU countries want to attract.
For example, Berlin’s 6th place ranking indicates Germany’s capital offers the urban experiences sought by immigrants like tech workers or entrepreneurs.
As EU states weigh immigration reforms, scoring highly as an appealing city destination will be a key advantage.
EU policymakers crafting post-ETIAS immigration strategies must factor in what makes their cities magnets for global talent relative to urban rivals.
Managing Tourism’s Delicate Balance
Euromonitor's 2023 index paints an optimistic picture for global tourism's revival after COVID-19’s disruption.
Cities like Paris and Tokyo lead the pack as top magnets for international travelers.
However, tourism's growth brings potential detriments like overcrowding, environmental harm, and effects on residents’ lives.
Cities must strike a delicate balance between attracting visitors and mitigating tourism’s downsides.
Sustainability is key to addressing this challenge.
Cities should implement eco-friendly practices while marketing cultural sites beyond just the main attractions.
Managing tourism flows to avoid overcrowding while spreading economic benefits more evenly is crucial.
The outlook faces uncertainty given inflation and looming recession risk.
However, sound policies emphasizing sustainable development can help cities thrive as attractive yet responsible destinations.
Savvy travelers too can opt for less crowded places that offer authentic local experiences.
With careful planning, cities can reinvigorate tourism while ensuring its positive impacts outweigh the negatives. If done right, destinations and visitors alike can prosper.