European tourism has continued to show strong growth in early 2025, despite ongoing economic uncertainties and geopolitical tensions. According to the European Travel Commission’s (ETC) latest quarterly report, international arrivals to Europe increased by 4.9% in the first quarter of 2025 compared to the same period in 2024. Additionally, the number of nights spent by travelers rose by 2.2%.
After a successful 2024, which saw tourism surpass pre-pandemic levels by 6.2% in arrivals and 6.4% in overnight stays, the sector has capitalized on changing traveler preferences. Many travelers are still seeking affordable destinations and off-peak travel, reflecting ongoing concerns over travel costs. Although the tourism outlook for 2025 remains stable, rising prices, geopolitical tensions, and the imposition of new U.S. tariffs may influence both traveler sentiment and spending habits as the year progresses.
The ETC’s report also notes a rise in travel spending. Travelers are expected to spend about 14% more in 2025 compared to 2024, with spending growth anticipated to outpace the increase in arrivals. This suggests that visitors may be spending more per trip.
ETC President Miguel Sanz commented on the report, emphasizing Europe’s resilience in the face of challenges. “Europe’s tourism sector continues to show extraordinary resilience, and the latest data highlights how European tourism is responding to shifting traveler priorities,” he said. “We are seeing strong interest in value-for-money destinations and growing demand for travel outside the peak season. These trends reflect cost-consciousness and a desire for more authentic travel experiences.”
Winter Destinations Lead Early-Year Performance
Winter tourism hubs in Europe have experienced a strong start to 2025, with destinations such as Slovakia (+14.3%) and Norway (+13.2%) showing notable year-on-year growth. Norway, in particular, has seen an increase in longer stays, with overnight stays up by 15.3% compared to 2024 and over 30% higher than in 2019.
Italy, known for its affordable ski destinations, has also sustained momentum through the winter months. Its overnight stays grew by 8%, outperforming some other alpine regions like Austria (-3.5%) and Switzerland (+4.5%).
Eastern Europe Sees Strong Recovery
Central and Eastern Europe are continuing their recovery after slower growth in recent years. Countries like Poland (+16.2%), Latvia (+27.8%), and Hungary (+18.2%), which were previously affected by their proximity to the war in Ukraine, have seen significant increases in arrivals. These destinations are rebounding from a low base, and the recovery is expected to continue.
Romania (+11.7%) and Bulgaria (+1.4%) also benefited from joining the Schengen Area in January, which has made travel across borders easier and sparked renewed interest from visitors.
Southern Europe Benefits from Off-Season Demand
Southern Europe has continued to be a popular destination in the first quarter of 2025, with many travelers from Northern and Western Europe seeking warmer winter temperatures. Spain, for example, welcomed over 10 million foreign visitors in just two months, a 2 million increase compared to 2019.
Other Mediterranean destinations, including Cyprus (+15.4%) and Malta (+12.6%), have also seen strong growth, albeit from a smaller base. This trend highlights the rising interest in off-season travel and how destinations are diversifying their tourism offerings to attract visitors outside of peak summer months.
Value for Money Drives Traveler Decisions
As travel-related costs remain above pre-pandemic levels, affordability has become a key consideration for travelers. Domestic and international package holidays have seen significant price increases, with prices rising by 12% and 10% respectively compared to 2024. This trend is contributing to shorter stays and increased demand for more affordable destinations.
Countries like Romania, which offer good value for money, have benefited from this shift in traveler priorities. On the other hand, destinations perceived as more expensive, such as Iceland (-5.7%) and Monaco (+0.8%), have seen stagnation or slight declines in arrivals.
U.S. Tariffs Raise Concerns Over Transatlantic Travel
New U.S. tariffs have introduced uncertainty into transatlantic travel, with Europe bracing for a potential drop in American visitors. The U.S. has long been a major source of long-haul tourists, but rising travel costs, changes in the Euro/US Dollar exchange rate, and the tariffs may dampen demand. In 2024, American visitors made up over a third of Europe’s long-haul arrivals, and the U.S. accounted for 9% of global travel pre-pandemic.
However, U.S. travel to Europe has continued to perform well in early 2025. More than 80% of destinations reporting data showed year-on-year growth in the first quarter.
While U.S. demand may soften, there could be offsetting trends, such as increased short-haul travel within Europe and a shift away from U.S. travel, particularly from China. These factors could help sustain European tourism amid global economic and geopolitical uncertainty.
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