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ForwardKeys - logoIn an insightful webinar hosted with the European Tourism Association (ETOA), Europe’s tourism sector is on the brink of an unprecedented summer season. Projections indicate that inbound tourism will surpass all previous records, with July and August showing an impressive year-on-year growth of 12%, slightly above the global average of 11%. This remarkable increase is primarily fueled by intra-regional travel, which has surged by 10% compared to 2023, along with a significant influx of visitors from long-haul markets in the Asia Pacific (+11%) and the USA (+21%).

Surge in Flight Searches and Bookings

The rise in flight searches and ticket bookings signals robust interest in European destinations despite global economic uncertainties. Major summer events are contributing to this heightened demand. Notably, there is faster growth in economy-class seats (+11%) over 2023, reflecting some economic caution, while premium-class tickets remain relatively stable with a modest increase of 1%.

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Central and Eastern Europe: Fastest Growing Regions

Central and Eastern Europe are witnessing the fastest growth in inbound tourism, rebounding strongly after a delayed reactivation due to the conflict in Ukraine. The region expects an astonishing 23% increase in tourist volumes this summer compared to last year. Northern Europe is also on a rapid growth trajectory (+12%), outpacing Southern European destinations (+10%), highlighting a widespread recovery across all European subregions.

Urban Destinations Lead the Tourism Revival

Urban destinations are at the forefront of Europe’s tourism resurgence, outperforming traditional sun and beach holidays. Cities like Munich are experiencing substantial growth, with an impressive 37% increase driven by major sporting events. This trend is echoed across the continent, with significant growth seen in Vienna (+23%), Edinburgh (+19%), Madrid (+16%), and Venice (+16%).

Medium-length stays remain the most popular, accounting for 63% of intra-regional arrivals. However, short trips (one to three nights) show the highest growth over 2023 at 23%, representing 16% of all stays. Extended trips (over two weeks) see a more modest increase of 5%.

Asia Pacific Markets Reactivate Strongly

The Asia Pacific region is displaying solid signs of reactivation, led by substantial growth in arrivals from China (+64%) and Japan (+53%) compared to 2023. Although overall volumes remain below pre-pandemic levels, improved air connectivity has spurred travel from these countries. China, in particular, now accounts for a larger share of seat capacity than before the pandemic, due in part to limited China-US connectivity, leading Chinese airlines to deploy their widebody fleet on European routes.

Multi-destination trips are gaining popularity among Asia Pacific travellers this summer. Noteworthy city pairings include Budapest-Vienna (+118%), Milan-Munich (+106%), Prague-Amsterdam (+71%), and Istanbul-Athens (+63%), reflecting the appeal of European urban centres for Asian tourists seeking cultural, historical, and shopping experiences.

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Major Events Drive Tourism Demand

Major events are playing a pivotal role in boosting tourism demand. Germany, the host of the UEFA Euro 2024 football tournament, is seeing a 19% increase in arrivals compared to the same period in 2023. The upcoming Olympic Games in Paris are also attracting more visitors, with significant growth from key markets such as China (+124%), Japan (+57%), Germany (+32%), and the USA (+25%). Taylor Swift’s Eras Tour has also spurred notable increases in tourist arrivals around concert dates, with spikes observed in cities like Stockholm (+136% vs +15%), Warsaw (+203% vs +31%), and London (+45% vs +12%).

These event-driven tourism spikes underscore the importance of significant events in driving growth, even during economic downturns, as demand for “once-in-a-lifetime” experiences remains high. Destinations with well-developed infrastructure, including stadiums, concert halls, and festival venues, stand to benefit significantly.

Conclusion: An Optimistic Outlook for European Tourism

The outlook for European tourism this summer is exceptionally positive, with record-breaking growth anticipated. Driven by intra-regional travel and critical markets such as the USA and Asia Pacific, Europe’s tourism recovery comfortably surpasses global averages.

The swift reactivation of Central and Eastern Europe, the dominance of urban city destinations, the resurgence of travel from Asia Pacific, and the impact of significant events all contribute to this optimistic forecast. European destinations are well-positioned to capitalize on these trends as the season progresses. However, with well-publicized protests against mass tourism in some of Europe’s most popular destinations, the importance of accurate and reliable travel intelligence for managing tourism flows sustainably and balancing the interests of visitors and locals has never been more apparent.

For further insights, visit ETOA’s official website.

 

 

 

Written by: Jill Walsh

 

 

 

 

 

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