From the Paris Olympics to overtourism, the region balances rising demand with local pressures in 2024
Feb 26, 2025
The Southern European hospitality market experienced another year of strong performance in 2024, driven by strong demand from global leisure travelers. This growth was particularly evident in the region’s hotel metrics, including significant increases in RevPAR and ADR. Major events such as the Paris 2024 Olympic Games contributed to the exceptional performance, particularly in Paris, where occupancy and ADR soared. Meanwhile, Spain saw a surge in international tourism, with cities such as Madrid and Barcelona driving growth. However, the region also faces challenges related to overtourism, which has led to protests and government measures to manage the influx of visitors.
Key takeaways
- Strong growth in southern Europe: The region saw a 9.8% increase in RevPAR in 2024, driven by demand for its beaches and historic cities. ADR also increased by 8% to reach EUR175, the highest in Europe;
- Paris Olympics impact: The Games led to a surge in demand, with Paris hotels achieving occupancy levels of over 80%, peaking at 90.5%. ADR during the event averaged EUR781, with the strongest RevPAR performance in key areas close to Olympic venues. The event boosted tourism beyond Paris, with regions outside the capital also experiencing significant growth;
- Spain’s tourism surge: Spain’s tourism market thrived in 2024, with RevPAR growth of 11.5%. Key cities such as Madrid and Barcelona saw significant increases in RevPAR, while coastal destinations such as the Balearic and Canary Islands also experienced notable growth, despite some challenges such as overtourism;
- Overtourism issues: Popular destinations, particularly in Spain and Italy, faced overtourism issues that led to protests and government measures such as tourist taxes and visitor caps. Despite these measures, both occupancy and ADR continued to grow in key markets;
- Looking ahead: Paris expects a return to normal after the Olympic Games. Italy will focus on attracting more long-haul travelers with improved air access. Spain faces the challenge of balancing tourism demand with local concerns about overtourism.
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