European Tourism Sees Continued Growth in Q1 2025 Amid Economic Pressures and Geopolitical Uncertainty
(IN SHORT) European tourism has seen continued growth, with international arrivals rising by 4.9% in Q1 2025 compared to last year. Demand for value-for-money destinations and off-peak travel remains strong, although new US tariffs and geopolitical tensions may influence future travel patterns. Winter tourism destinations and Mediterranean areas have seen notable increases in visitor numbers, while Eastern Europe is also recovering. With rising costs, travelers are increasingly prioritizing affordability, and some countries are benefiting from this shift.
(PRESS RELEASE) BRUSSELS, 2025-May-8 — /Travel PR News/ — Tourism in Europe continues to demonstrate robust growth as international arrivals rose by 4.9% in Q1 2025 compared to the same period last year, according to the latest “European Tourism: Trends & Prospects” report from the European Travel Commission (ETC). This upward trajectory reflects the sector’s ability to adapt despite economic pressures, with travel nights increasing by 2.2%.
The positive momentum follows a strong 2024 performance, which saw arrivals exceed pre-pandemic levels by 6.2%, alongside a 6.4% rise in travel nights. Key factors behind this growth include rising demand for value-for-money destinations and off-peak travel, as travelers remain price-sensitive amidst global economic uncertainty. However, the introduction of new US tariffs and ongoing geopolitical tensions pose challenges for both transatlantic and global tourism performance in the coming months.
Travel expenditure across Europe is expected to rise by 14% in 2025, with spending growth outpacing the increase in arrivals. This suggests that travelers are spending more per visit, which could be attributed to the demand for higher quality, value-focused travel experiences.
ETC President Miguel Sanz commented: “European tourism continues to display extraordinary resilience, with travelers increasingly seeking value-for-money destinations and off-peak travel options. These trends reflect both cost-consciousness and a broader desire for more authentic, balanced travel experiences. Despite growing uncertainty, Europe’s diversity, connectivity, and reliable quality position it as a top global destination.”
Strong Performance in Winter Destinations
Winter tourism hubs showed strong results in early 2025, with significant increases in arrivals to Slovakia (+14.3%) and Norway (+13.2%). Norway, in particular, benefited from longer stays, with overnight visits up 15.3% compared to 2024, marking a rise of over a third from 2019 levels. Italy also performed well, with an 8% increase in overnight stays, driven by its reputation as a value-for-money ski destination. In contrast, alpine destinations like Austria and Switzerland saw more modest gains.
Eastern Europe Sees Recovery Amid Improving Confidence
Central and Eastern European countries, which faced challenges in recent years, are now recovering. Poland (+16.2%), Latvia (+27.8%), and Hungary (+18.2%) have experienced strong growth in arrivals, though from a lower base due to their proximity to the war in Ukraine. Romania (+11.7%) and Bulgaria (+1.4%) also benefited from their inclusion in the Schengen Area, which has eased cross-border travel and boosted visitor interest.
Mediterranean Destinations Benefit from Off-Peak Demand
Southern Europe continues to attract travelers, particularly during the off-peak months. Spain welcomed over 10 million foreign arrivals in just two months, nearly 2 million more than in 2019. Other Mediterranean destinations, such as Cyprus (+15.4%) and Malta (+12.6%), also saw strong growth. This demand has been bolstered by increased air capacity to Malta and a growing trend for ‘cool-cations,’ as travelers increasingly opt for warmer winter destinations over the summer.
Value-for-Money Drives Travel Choices
Rising tourism costs are driving travelers to prioritize affordability. Price increases in most tourism-related categories, particularly in domestic and international package holidays, have led to shorter stays and heightened demand for value-for-money destinations. Countries like Romania have benefitted from these trends, while destinations perceived as more expensive, such as Iceland (-5.7%) and Monaco (+0.8%), have experienced stagnation or declines.
US Tariffs and Uncertain Transatlantic Outlook
The recent introduction of US trade tariffs adds uncertainty to the transatlantic travel market, potentially dampening demand from American visitors to Europe. While Europe remains a top long-haul destination, fluctuating exchange rates and rising travel costs could soften US demand. However, early 2025 data shows that over 80% of European destinations have reported year-on-year growth in US arrivals, despite these challenges.
Full report can be downloaded here.
Media contact
Amelia Conwell
Penta Group
etc@pentagroup.co
Ph: +32 (0)492 46 39 03
SOURCE: The European Travel Commission (ETC)
