Europe’s tourism industry posted a stable performance in the second quarter of 2025, with international arrivals up 3.3% year-on-year, underpinned by growing off-season travel and renewed interest from China and the US.
Despite persistent economic pressures and geopolitical uncertainty, Europe’s tourism sector demonstrated steady resilience, according to the European Travel Commission’s latest ‘Trends & Prospects’ report. While the number of nights spent by tourists declined slightly by 0.7%, likely due to calendar effects such as a later Easter, international arrivals rose modestly — a sign that demand remains strong even amid elevated costs.
ETC President Miguel Sanz acknowledged the sector’s continued adaptability, urging destinations to invest in innovation and more sustainable, inclusive tourism models that meet the expectations of both visitors and local communities.
Sun-seeking travellers drive off-season momentum
Off-season travel continues to gain traction, particularly for sun and beach destinations. A surge in spring getaway searches — up 36% among European travellers — was largely driven by interest in avoiding peak-season heat and crowds. Destinations like Malta (+19%) and Cyprus (+16%) saw notable gains, while Spain and Portugal also benefited from this extended seasonal demand.
Meanwhile, Central and Eastern European countries such as Latvia, Lithuania, and Hungary experienced year-on-year growth in arrivals of over 14%, supported by improved air connectivity and a broader recovery from the pandemic and regional instability.
Tourist spending rises despite price sensitivity
Although travel-related costs have risen — with international flights to Southern Europe up 5% and package holidays up 7% — total travel expenditure is forecast to increase by 13% in 2025. The data suggests tourists are travelling more strategically, seeking better value while spending more on quality experiences. Destinations like Spain, Cyprus and Malta reported substantial revenue growth, particularly during the off-peak months.
US and Chinese visitors boost long-haul travel
Travel from the United States remains a bright spot, especially for destinations in Northern and Southern Europe. Overnight stays by Americans increased by 35% in Norway and 24% in Denmark, while Croatia, Montenegro, and Greece also saw strong gains. Lower airfares between the US and major European cities have helped offset broader economic concerns.
China’s return to the European travel map is also gathering pace. Arrivals from Chinese travellers are up in all reporting destinations, with significant growth in Croatia (+7%), Estonia (+15%) and Romania (+20%). The recovery is expected to strengthen further, aided by expanded flight routes and growing interest in Europe as a preferred destination amid global uncertainty.
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Photo of Malta, credit: CALIN STAN, Unsplash