Record summer temperatures, exorbitant prices at luxury hotels and crowded hotspots: nothing’s stopping you from enjoying a summer holiday in Europe – at least for now.
A new report on tourism spending and travel trends published by the European Travel Commission in the second quarter of 2024 and shared exclusively with Bloomberg confirms that demand in the region continues to surge.
International tourists are expected to spend a record 800 billion euros in Europe this year, up 37% from the 583 billion euros pre-pandemic, according to data from the United Nations World Tourism Organization. International visitor numbers are also up 6% so far this year compared to 2019, a new record for Europe, according to the report.
Americans are driving Europe’s tourism boom this year, with 72% of record spending so far occurring in Western European destinations, the report added. ETC said further revenue growth was coming from intraregional visitors and repeat tourists from East Asia, particularly China, although the contribution of Chinese travellers’ spending was not immediately clear.
“For now, southern Europe and Mediterranean destinations appear to remain popular among European travelers,” Eduardo Santander, CEO of the European Travel Commission, said in an emailed statement. That’s because tourists continue to prioritize warmer weather and value for money, he added, both of which are still possible in parts of southern Europe.
Greece, for example, is seeing this trend despite increasing weather impacts, including this year’s heatwaves and last year’s wildfires, which the report said have had no impact on the destination’s appeal. Indeed, Greece has seen a proliferation of luxurious yet affordable hotel options this year, most of which are located away from pricey resort destinations like Santorini and Mykonos.
However, northern destinations are rapidly gaining market share. In fact, the data confirms that a shift in European tourism patterns is already underway, with more tourists flocking to destinations with warmer weather and less crowded conditions in the first half of the year. This continued rise in “coolcations” has led to notable increases in international overnight stays in Denmark (+38%), Norway (+18%) and Sweden (+9%) year to date compared to 2019.
There is also an increasing preference for less-visited or less-crowded European destinations in the south, according to the report. International tourist arrivals in Croatia and Malta increased by 7.6% and 37% respectively compared to 2019, while Albania’s share of overnight tourist arrivals increased by 86% compared to 2019.
Destinations with favorable foreign currency exchange, whether off the beaten path or not, have also seen a surge in popularity, with Bulgaria (+29%), Serbia (+40%) and Turkey (+22%) seeing double-digit increases in international tourist arrivals compared to pre-pandemic levels.
The report also tracks online perceptions of Europe, which ETC says scored higher than any other region in the world for Q2 2024 with a score of 46 out of 100. Second and third place went to the Middle East and Asia Pacific, with scores of 45 and around 35 respectively. The social sentiment measurement is the result of tracking discussions and information about a destination shared on social media, forums, blogs, company websites and online reviews. Zero is considered the midpoint, with an equal number of positive and negative mentions.
Travelers are frustrated by overtourism in popular destinations, but challenges in some places are creating opportunities in others, which is why places like Magerøya in Norway, Bornholm in Denmark, and Iona in Scotland are gaining attention.
Santander says encouraging tourists to venture to lesser known places is key to spreading the benefits of international visitors across Europe, especially at a time when small businesses face economic pressures such as rising operating costs and staff shortages.
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