European Tourism | International Arrivals Up 4.9% in Q1, Travel Spending Expected to Grow 14% in 2025

The European tourism industry continues to show remarkable dynamism, with international arrivals up 4.9% in the first quarter of 2025 compared to the same period in 2024, according to the latest report “European Tourism: Trends & Prospects” by the European Travel Commission (ETC). Overnight stays increased by 2.2%, confirming the continued momentum the sector has gained since the pandemic.

New travel habits boost demand

Demand for destinations offering value-for-money experiences and off-peak travel remains strong. Consumers are more careful with their spending, but they still choose to travel, choosing cheaper and more authentic experiences.

+14% travel spend

Looking at travel spending, the latest estimate for 2025 is that travelers are expected to spend around 14% more across Europe than in 2024. With spending growth forecast to outpace arrivals, this predisposes to a higher average spend per visit this year.

Winter getaways boost arrivals early in the year

Europe’s winter destinations performed strongly in early 2025. Slovakia (+14.3%) and Norway (+13.2%) stood out in arrivals, with the latter also seeing a significant increase in overnight stays (+15.3% compared to 2024 and +35% since 2019). Italy, due to its image as an economic ski destination, also recorded positive results (+8% overnight stays), in contrast to Austria (-3.5%) and Switzerland (+4.5%).

Eastern Europe recovers

Central and Eastern European countries have seen a notable recovery, boosted by improved confidence and connectivity. Poland (+16.2%), Latvia (+27.8%), and Hungary (+18.2%) have seen spectacular increases in arrivals compared to 2024, despite coming from a lower base due to their proximity to the war in Ukraine. In addition, Romania (+11.7%) and Bulgaria (+1.4%) have benefited from their entry into the Schengen Area, facilitating free movement.

Growth for the Mediterranean thanks to off-season demand

Mediterranean destinations continue to benefit from travelers’ shift to milder climates and off-peak summer travel. Spain attracted over 10 million international arrivals in just two months, almost 2 million more than in 2019. Other destinations with strong growth were Cyprus (+15.4%) and Malta (+12.6%), benefiting from increased air connectivity and trends such as “cool-cations” – trips to avoid extreme summer temperatures.

Price is a key factor in destination choice

Increasing prices in tourism services make affordability a key factor in choice. Package holidays have increased by up to 12% domestically and 10% internationally compared to last year. Destinations such as Romania, which offer lower prices, are recording an increase in arrivals, while more expensive destinations such as Iceland (-5.7%) and Monaco (just +0.8%) are stagnating or falling.

Uncertainty in transatlantic tourism due to US tariffs

The new tariffs announced by the US are creating further uncertainty for transatlantic tourism, with Europe expecting a possible downturn in the US market. Although the US was a key market for Europe in 2024 (over 1/3 of long-haul arrivals), the exchange rate and the increase in travel costs may hold back demand. However, the first quarter data shows a positive sign, with over 80% of European destinations recording an increase from the US.

At the same time, there may be counterbalancing developments, such as more travellers moving towards short-haul intra-European travel, thereby limiting the impact of international uncertainties.

Resilience and adaptability

Commenting on the figures, ETC President Miguel Sanz said:

“The European tourism sector continues to show remarkable resilience, and the latest figures highlight how European tourism is responding to changing traveller priorities.

There is strong interest in value-for-money destinations, as well as growing demand for travel outside the traditional peak season.

These trends reflect greater cost-consciousness, but also a wider desire for more balanced and authentic travel experiences. As uncertainty increases globally, Europe’s ability to offer diversity, connectivity, and reliable quality makes the region a strong contender to remain a preferred travel destination worldwide.”

RELATED TOPICS: Greece, Greek tourism news, Tourism in Greece, Greek islands, Hotels in Greece, Travel to Greece, Greek destinations, Greek travel market, Greek tourism statistics, Greek tourism report