Europe’s Economy to Benefit from Record €800 Billion Tourism Revenue in 2024

According to the research, Americans are the ones driving this year’s tourism boom in Europe.

Record summer temperatures, excessive luxury hotel charges, and congested hot spots – nothing seems to stop a European summer holiday. Not yet, at least.

The demand for the region is still rising, according to a recent analysis on tourism spending and travel patterns from the European Travel Commission that was released in the second quarter of 2024.

According to the article, foreign visitors are expected to spend a record €800 billion in Europe this year, up 37% over pre-pandemic levels of €583 billion, according to figures from the United Nations World Tourism Organization. According to the data, foreign tourist visits have increased by 6% so far in 2019 and have set a new record for Europe.

According to the research, Americans are the ones driving this year’s tourism boom in Europe, with 72% of all record travel expenditures occurring in Western European destinations. In-region travellers and returning East Asian tourists, particularly those from China, have also increased revenue, though the ETC reported that the exact contribution of Chinese tourists was not immediately accessible.

According to Eduardo Santander, the CEO of the European Travel Commission, in an email, “We can see that southern European and Mediterranean destinations remain firm favourites for travellers in Europe.” He noted that this is because travellers still appreciate affordable travel and pleasant weather, both of which are still present in some regions of southern Europe.

Greece, for instance, is in this situation even though the country has seen a rise in the effects of the climate, such as heat waves this year and wildfires last year. The research claims that the latter has had no effect on the destination’s attraction. The nation has witnessed a boom in upscale yet reasonably priced lodging alternatives this year, the majority of which are located outside of the more expensive destinations like Santorini and Mykonos.

Yet, market share is rapidly being gained by northern destinations. In fact, the data show that a change in European travel trends is already under way: in the first half of this year, more travellers travelled to locations with mild weather and less congestion. In comparison to 2019, the number of foreign overnight stays for Denmark (+38%), Norway (+18%), and Sweden (+9%) has increased significantly due to the continuous rise in “coolcations.”

The survey also reveals a rising inclination for less-travelled or less crowded southern European destinations: While Albania’s proportion of overnight tourist visits has increased by 86% over 2019 levels, Croatia and Malta saw increases in overseas visitor arrivals of 7.6% and 37%, respectively.

Whether they are off the beaten path or not, locations with a good exchange rate are also becoming more and more popular. For example, Bulgaria (+29%), Serbia (+40%), and Turkey (+22%) all saw double-digit increases in foreign visitor arrivals compared to pre-pandemic levels.

According to the ETC, Europe fared higher than other regions globally in terms of online perceptions, which the study also tracks. For the second quarter of 2024, the region had a score of 46 out of 100. The Middle East and Asia Pacific regions came in second and third, respectively, with ratings of 45 and around 35.

Monitoring conversations and information on travel destinations posted on social media, forums, blogs, business websites, and online reviews leads to social sentiment measurements. Zero is regarded as the median, containing both favourable and unfavourable references.

Overtourism in well-known locations is one thing that has turned off vacationers. However, opportunities have arisen in some regions as a result of the difficulty. This explains why locations like Scotland’s Iona, Bornholm in Denmark, and Norway’s Magerøya are becoming more well-known.

Spreading the benefits of foreign travel throughout Europe would require encouraging tourists to visit lesser-known destinations, according to Santander. This is especially important since small businesses are already under pressure from rising operating expenses and a lack of employees.