In Q1 2025, European tourism showed positive growth of 4.9% despite rising global uncertainty and economic pressures. Value-for-money and off-peak travel trends drive demand, while new US tariffs are expected to pose challenges for transatlantic travel.
Despite economic uncertainties and geopolitical tensions, European tourism showed remarkable resilience in early 2025. The Q1 report from the European Travel Commission (ETC) revealed a 4.9% increase in international tourist arrivals and a 2.2% increase in overnight stays compared to the same period in 2024. This growth follows a robust 2024 when arrivals exceeded pre-pandemic levels by 6.2%, and nights by 6.4%.
Trends Driving Demand
The demand for value-for-money destinations and off-peak travel remains strong, reflecting ongoing price sensitivity among travelers. The latest estimate for 2025 suggests that travelers are expected to spend around 14% more across Europe than in 2024, possibly reflecting a higher average spend per visit. Winter tourism hubs like Slovakia and Norway also performed strongly in early 2025.
Eastern Europe’s Recovery
Central and Eastern European destinations continued to recover from the slower performance of recent years, with countries like Poland, Latvia, and Hungary demonstrating a rebound in arrivals in Q1 2024. Romania and Bulgaria, since joining the Schengen Area in January, have begun to facilitate smoother cross-border movement and renewed visitor interest.
Mediterranean Destinations and Off-Season Demand
Southern Europe remained a major draw in Q1, with Spain welcoming over 10 million foreign arrivals in two months, up nearly 2 million compared to 2019. Rising interest in travel outside peak summer months and increased air capacity for Malta have supported this trend.
Value-for-Money Considerations
As costs for tourism-related services remain high, travelers are placing a greater emphasis on affordability. This potentially supports shorter stays, alongside greater demand for more affordable destinations. Some countries, like Romania, have benefited from an increase in arrivals. Meanwhile, destinations perceived as more expensive, like Iceland and Monaco, have stagnated or declined.
Impact of New US Tariffs
Introducing new US trade tariffs has added heightened uncertainty to transatlantic travel. Europe is preparing for a potential dip in American visitors this year due to fluctuations in the Euro/US Dollar exchange rate and rising travel costs. However, US travel to Europe continues to perform well in early 2025, with over 80% of reporting destinations recording year-on-year growth in Q1.
Download European Tourism 2025 – Trends & Prospects (Q1/2025).
