Europe’s tourism industry has recovered from a steep decline caused by the coronavirus pandemic, but mass tourism and overcrowding are straining local communities.
After the COVID-19 downturn, tourism across Europe is expected to recover in 2023 and 2024, approaching and in some countries exceeding pre-pandemic levels.
According to data released by the European Commission last week, the number of overnight stays in tourist accommodation across the European Union (EU) in the first quarter of 2024 was 452.6 million, up 7% compared to the same quarter in 2023.
Foreign visitors accounted for around 45% of all overnight stays in the first three months of 2024, with large variations between EU countries. The highest number of overnight stays by foreign visitors were in Malta (91%), Greek Cypriot Administration (87%), Luxembourg (82%) and Austria (78%).
At the other end of the rankings are Germany, Romania and Poland, all large geographical countries with a proportion of foreign guests of around 20%.
The economies of Spain, Greece and Portugal, which were derided as the “Club Mediterranean” during the European debt crisis 15 years ago, are now performing better than those of their Nordic counterparts thanks to a recovery in tourism.
The three countries have had to endure severe austerity measures imposed by their European Union partners, who blamed the economic crisis on fiscal laxity and lack of competitiveness.
But “things have changed” since the COVID-19 pandemic ended, said Zsolt Darvas, an economist at the Brussels-based think tank Bruegel: “These countries are now growing faster than the European Union average and are no longer considered a nuisance.”
Tourism in Slovenia also had a record-breaking year last year, despite devastating floods in early August. The country of about 2.1 million people welcomed 6.2 million tourists, a 5.5% increase compared to 2022 and only a 0.6% decrease compared to 2019, before the pandemic.
assignment
However, in recent years, Europe’s tourism industry has faced many challenges, one of which is a chronic shortage of talent.
In Austria, for example, a report by management consulting firm Deloitte in collaboration with the Austrian Hotel Association (ÖHV) on the state of tourism found that high costs, staff shortages and a weak economy are putting strain on the industry.
In North Macedonia, tourist numbers increased by 15.3% and overnight stays increased by 15.2% in the January-April period compared to the same period last year. The majority of visitors came from Turkey, Germany, Serbia, Greece, Bulgaria, Croatia and Slovenia.
The country’s Agency for Promotion and Support of Tourism (APPT) is implementing cross-border cooperation projects with Greece funded through the EU’s Institution of Pre-Accession Assistance (IPA), which supports countries about to join the EU, such as North Macedonia.
Neighbouring country Albania received 10.1 million tourists last year, a 35% increase compared to 2022.
The upward trend continued in the first months of 2024, with around 974,000 foreign tourists visiting Albania in May alone, bringing the total number in the first five months of the year to over 3.3 million.
Polina Karastoyanova, head of Bulgaria’s National Tourism Organization, told a conference in Sofia that joining the eurozone was important for the country as a tourist destination, adding that tourism was one of the few industries in Bulgaria that could double in size.
Similarly, Mislav Brkic of the Croatian National Bank argued at a separate conference that countries like Croatia, which will join the euro zone in 2023, stand to benefit most from being part of the monetary union. He said adopting the euro would make Croatia safer for markets and would benefit tourism.
Tourism in Croatia is a major contributor to the country’s economy, accounting for around 20% of the country’s Gross Domestic Product (GDP). According to data released by the European Commission, Croatia ranked second in terms of growth in foreign overnight stays in the first quarter of 2024, up 22% year-on-year.
Growing resentment
While an increase in tourism may be good for the economy, overcrowding is fuelling frustration among residents in popular spots across the continent.
MEPs say websites such as Airbnb are exacerbating the problem of illegal rentals and putting pressure on the housing market.
Residents in Italian tourist destinations such as Venice, Rome and parts of Tuscany are calling for controls on the flow of tourists, with Venice recently introducing entrance fees for day trips.
In Palma, on the Spanish island of Mallorca, Mayor Jaime Martinez has announced plans to curb mass tourism in the city center. Local media reports say the most sweeping proposal is to ban the setting up of rental spaces for tourists. The mayor has also proposed introducing regulations to curb property rentals to foreigners.
In Amsterdam, Netherlands, the number of visitors in 2023 is also increasing compared to the previous year, with around 60% being from within the Netherlands and the rest from abroad.
The city expects tourist numbers to continue to rise. “The flow of tourists puts a strain on facilities and, especially, the city center is often too crowded,” it said in a statement.
In March, EU ministers gave final approval to regulations that will require platforms to share landlord data with local authorities, giving them the power to take tougher action if landlords don’t comply with the rules.
