European tourism recovery continues into first half of 2023 as travel returns to pre-pandemic levels in more countries
Data from European destinations shows that travel demand remains strong. Approximately two out of three countries have now reported full recovery or foreign tourist arrivals and/or overnight stays within 10% of pre-pandemic levels. Foreign arrivals across Europe are currently just 1.6% below 2019 levels, and this recovery is expected to continue until 2024.
Inflationary pressures are the main factor partially constraining travel demand. Prices for travel products such as international flights, package holidays and hotels all remain more than 30% higher than before the pandemic. However, the end appears to be in sight as price pressure eased in Q4 2023. Other constraints, such as strikes and the war between Israel and Hamas, are expected to continue to impact travel flows from both intra-European and long-haul markets, particularly risk-averse markets.
Some of the countries with the highest increase in international travel arrivals compared to 2019 include Portugal (up 11%), Montenegro (up 10%), Turkiye (up 9%) and Malta (up 8%). Includes many Southern European destinations. These are popular destinations for more value-oriented, all-inclusive vacations, benefiting from climate-friendly conditions that will last until late 2023. Meanwhile, destinations bordering Russia continue to be the slowest to recover in foreign arrivals.
