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Europe’s travel resilience in 2025

  • Automatic
  • 12 May 2025
  • 2 minute read
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This article was written by Hospitality Today. Click here to read the original article

Despite global uncertainty, European tourism grows steadily as travelers seek value, authenticity, and off-season experiences

May 12, 2025

European tourism has entered 2025 with steady momentum, defying global economic and geopolitical headwinds. According to the European Travel Commission’s Q1 report, international arrivals rose 4.9% year-over-year, supported by strong off-season demand, increased traveler expenditure, and the appeal of value-for-money destinations. While macroeconomic uncertainty and new U.S. tariffs may influence future performance, Europe’s tourism sector shows continued resilience and adaptability in the face of shifting global travel dynamics.

Key takeaways

  • Continued growth: International tourist arrivals in Europe increased by 4.9% in Q1 2025 vs. Q1 2024, with overnight stays up 2.2%.
  • Higher spending: Traveler expenditure is expected to rise by 14% in 2025, outpacing arrival growth – indicating higher per-trip spending.
  • Winter tourism boost: Slovakia (+14.3%) and Norway (+13.2%) led winter destination gains, with Norway’s overnight stays up 15.3% over 2024 and 34% over 2019.
  • Eastern Europe rebounds: Countries like Latvia (+27.8%), Hungary (+18.2%), and Poland (+16.2%) saw strong recovery from prior subdued levels, partly due to easing war-related perceptions and improved connectivity.
  • Schengen expansion effect: Romania (+11.7%) and Bulgaria (+1.4%) saw increased arrivals after joining the Schengen Area, facilitating easier cross-border travel.
  • Mediterranean off-season popularity: Spain, Cyprus (+15.4%), and Malta (+12.6%) benefited from demand for milder climates and non-peak travel, driven by the “cool-cation” trend.
  • Affordability as a driver: Travelers remain cost-conscious, with package holiday prices up 10–12% YoY. Value-for-money destinations like Romania gain, while high-cost locations like Iceland (-5.7%) lose traction.
  • US market outlook mixed: Despite early 2025 growth in US arrivals to Europe, new tariffs and exchange rate volatility may curb future demand. The U.S. remains a vital market, contributing significantly to long-haul travel.

Get the full report at the European Travel Commission

Proven Strategies to Drive Revenue and Profits in Hospitality Today – Judith Cartwright
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