European tourism neared pre-pandemic levels in the final quarter of 2023, despite inflationary pressures, according to figures from the European Travel Commission (ETC).
Its quarterly European Tourism Trends & Prospects report said foreign tourist arrivals were 1.6% below 2019 figures, with nights 0.6% below.
It said these results were “showcasing a resilient travel demand across the continent – a trend which is expected to continue into 2024”.
It said the recovery is fuelled by strong intra-European travel, primarily from Germany, France, and the Netherlands.
Long-haul arrivals are also rebounding, but at a slower pace and showing significant variations between regions such as the Asia-Pacific and North America.
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Miguel Sanz, ETC president, said: “The high travel demand seen in 2023 provided a significant boost to European economies and will help improve the balance sheets of tourism companies, which were hard hit by travel restrictions. However, the return to pre-pandemic levels will also put pressure to accelerate the sustainable transition of the travel industry.
“We are working to develop new indicators monitoring social and environmental factors that will contribute to producing tourism strategies to measure not only the growth of the industry but also its impact on the environment, local communities, and businesses.”
The report noted how European travel remained resilient in the last months of 2023, with two-thirds of destinations reporting either a full recovery or recording arrivals and/or overnights within 10% of pre-pandemic levels.
Southern European destinations continue to be the frontrunners, boosted by favourable weather extending into the shoulder season.
Serbia saw the largest surge in arrivals compared to 2019 (+15%), alongside Portugal (+11%), Montenegro (+10%), Türkiye (+9%), and Malta (+8%). They are also popular destinations for all-inclusive holidays and more affordable travel costs, which has been key to attracting price-conscious travellers, said the ETC.
Iceland saw a 12% increase in arrivals even amid volcanic eruptions, while the Netherlands grew tourist nights by 16% despite a smaller 2% rise in arrivals, indicating longer stays.
In contrast, Eastern European destinations bordering Russia experienced a slower rebound, with countries such as Lithuania (-32%), Latvia (-29%), Estonia (-27%), and Finland (-24%) lagging behind.
The report also noted how inflation surged by 23% in Q4 2023, compared to 2019 levels, with particularly pronounced increases seen in tourism-related expenses such as international flights (+49%), package holidays (+47%), and hotel prices (+35%).
“These higher prices have strained household finances, but they have not deterred the majority of those who wish to travel,” said the report.
Chinese arrivals were 67% below pre-pandemic levels, compared to the 22% average for all other long-haul source markets. The market from China is predicted to reach 39% below 2019 figures.
Meanwhile, the US and Canada have seen “significant recovery”, with two-thirds of European destinations have reported growth in arrivals and/or overnights from the US, while over half have seen the same for Canada.