Economic woes dampen growth prospects in 2023, but strong travel craze will drive Europe’s tourist recovery this summer
In the first quarter of 2023, international tourist arrivals in Europe recovered to approximately 95% of 2019 levels, based on data from reporting destinations. Strong travel enthusiasm supported the recovery even as stubborn inflation and rising costs of living weighed on consumers’ wallets. Before the peak season, sunset enthusiasts will not make any concessions on travel and will continue to benefit destinations with better value for money as they are price sensitive.
Europe’s tourism industry will likely have to weather the travel disruption experienced last summer, with airports and accommodation understaffed and rising travel costs. Nevertheless, the EU has shown some economic resilience so far in 2023, including lower energy prices, faster employment rates and a gradual retreat in inflation. However, risks to the tourism outlook remain, particularly from persistently high core inflation and uncertainty over the impact of Russia’s war in Ukraine.
One in four reported destinations included high-value destinations such as Serbia (up 27%), Bulgaria (up 21%), Montenegro (up 12%) and Turkiye (up 9%). , foreign tourist arrivals exceeded pre-pandemic levels.
