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Home » Europe’s tourist surge overcomes cost of living crisis
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Europe’s tourist surge overcomes cost of living crisis

adminBy adminSeptember 4, 2023No Comments5 Mins Read
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From two-hour queues at the Eiffel Tower in Paris to Athens restricting visitors to the crowded Acropolis, it’s hard to miss the number of tourists returning to Europe this summer.

Despite the soaring prices, flight bookings to Northern Europe rose 25% year-on-year from June to August, and 13% for southern Europe, according to data aggregator ForwardKeys.

Industry data provider STR said hotel occupancy across the continent in July was just 4% below pre-pandemic levels for the same month in 2019, with hotspots such as Paris averaging 79 rooms per day. However, it was just 4% below pre-pandemic levels. Cents were higher this July than in 2019.

The region’s tourism industry has enjoyed its best summer season since before the coronavirus pandemic, as an increase in American tourists offset the effects of intense heat and stubborn inflation.

France’s Tourism Minister Olivia Grégoire said last week that the world’s most visited country would benefit from a record 64-67 billion euro windfall from international tourism this year after a “very good” summer season. I predicted it would be deafening.

Spain welcomed 47.6 million international travelers in the seven months to the end of July, 21% more than in the same period last year and just 0.8% below 2019 levels, according to national statistics agency INE.

Crowds gather on a canal near St. Mark's Square in VeniceTourism in Venice is boosting business, but as landlords rent out their homes to holidaymakers, some locals are relocating due to rising prices, crowding and reduced access to housing. © Stefano Mazzola/ Getty Images

Eduardo Santander, chief executive of the European Travel Council, said the region’s economy had been boosted by a “great holiday season” “despite the economic situation”.

Simon Vincent, president of Europe, Middle East and Africa at hotel group Hilton, said the success of the summer season was due to “consumer resilience and the sheer number of Americans.” I can’t.” current London. ”

Barcelona is set to welcome 16% more American tourists this year than in 2019, and London is expected to see a 13% increase in American tourist numbers, according to forecasts from Oxford Economics. According to the same forecast, total overnight tourist numbers in the UK and Spain will return to pre-pandemic levels this year.

In France, the increased purchasing power of American tourists was a major factor in the surge in tourism revenue. “This international clientele tends to use luxury accommodation,” says Didier Arino, president of consultancy Protourism. “We will inevitably see an increase in revenue as our U.S. customers and other far-flung customers return.”

Hotels and restaurants catering to high-end travelers performed particularly well. Located in sunny Aix-en-Provence, the restaurant and arts center Hôtel de Garifée is booked all season long.

Bar chart of flight bookings to popular destinations in Europe from June to August this year (% above/below) shows that summer flight bookings to Greece have rebounded above pre-pandemic levels. I have

General manager Kate Davis said: “Many of our visitors aren’t people who are watching their wallets, so we’re lucky to be protected,” adding that visitors from the US, Australia and Asia “They were willing to pay the money,” he said. 30 euros for a glass of wine. . . If you did that to a French visitor, they would leave. ”

The sector’s strong year is not just due to international tourists. Airlines say this year’s pandemic boom in domestic travel has returned to a more normal pattern, but budget certainty from domestic holidays has helped maintain high demand.

Tom Jenkins, chairman of the Tourism Alliance, said Britain’s holiday resorts were still full despite the staycation boom “definitely slowing down”.

Emmanuel Maril, Airbnb’s director of Europe, Middle East and Africa, said there were signs that “people with financial constraints prefer staycations,” adding: “When transport costs rise this much, it’s driving demand for domestic travel.” It will help maintain that,” he added. ”.

However, the rise in American tourism has put many domestic destinations out of reach for some European families.

“We went camping in Austria for two weeks because it was much cheaper for our family of four than a holiday by the sea,” said Gaia Quadri, a childcare worker from north of Milan.

Heatwaves across southern Europe and wildfires on Greece’s Rhodes island burned 15% of the country, caused nearly 20,000 people to evacuate, and made headlines all summer, but concerns about Europe’s sunny climate continue to rise. It did little to reduce demand.

Bar chart for July 2023 and July 2019 (% top/bottom)

According to ForwardKeys, Greece was the only major European destination where total ticket bookings for the June-August period exceeded the same period in 2019, with summer bookings up 10% over 2019.

But in Italy, the hot south of the country recorded a decline in tourists, in contrast to cities such as Venice, Rome and Florence, which saw an influx of international tourists.

According to industry group Assoturismo, there were 82 million hotel reservations in the country in August, down 800,000 from the same month last year, but some experts believe the decline is due to extreme weather.

The influx of foreign holidaymakers has also reignited long-standing debates over overtourism in some of Europe’s top travel destinations. Last month, Amsterdam city council banned cruise ships from entering its port, while the Italian seaside resort of Portofino threatened to fine tourists of up to 270 euros for lingering in crowded areas to take selfies.

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In Venice, the return of tourists is a boost for businesses, but as landlords look to rent out their homes to vacationers, they are turning elsewhere amid rising prices, crowding and reduced access to housing. It has been a bitter pill to swallow for some local residents who have been forced to relocate.

“A lot of people my age are moving elsewhere, because it’s very difficult economically, socially and logistically to maintain life in this city,” he said. said Julia, 28, whose job is to prevent tourists from sitting on the stairs on the street.

ETC’s Santander said it’s important to remember that “tourism success is not just about the number of travelers or the amount of money spent,” adding: “There are bottlenecks, lack of skilled staff, overcrowding, etc. He pointed out that old issues such as “and the associated negative impact on tourists” are making a comeback. local community”.



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