European Tourism Stays Strong Thanks to Emerging Destinations
Travel expenditure is up, even as off-season and long-haul travel gain traction.
Despite a slight dip in overnight stays, European tourism demonstrated resilience in the second quarter of 2025, as international arrivals increased by 3.3% compared to 2024. Growing travel expenditure signals a positive economic impact.
Mediterranean Destinations See Growth
Demand for off-season sun and beach holidays is a significant trend, with spring getaway searches up 36% year-on-year. Travelers are avoiding summer crowds and heat, opting for pleasant shoulder-season weather.
**Malta** saw a 19% increase in arrivals, while **Cyprus** posted a 16% rise, benefiting from a favorable climate, robust flight connections, and rich cultural heritage. Even larger Mediterranean destinations like Spain (+7%) and Portugal (+3%) experienced increased tourist arrivals during the off-season.
Interestingly, the Greek island of Santorini is struggling with overtourism, as new regulations aim to limit cruise ship passengers to 1,200 per day.
Central and Eastern Europe’s Appeal
Central and Eastern Europe are experiencing notable growth. Destinations such as Latvia, Lithuania, and Hungary reported impressive increases in international arrivals, with Latvia at 16%, Lithuania at 15%, and Hungary at 14%.
Better air connectivity, recovery from the pandemic, and the regional effects of the Russo-Ukrainian war are driving this growth. These countries offer unique experiences, rich culture, and historical sites at competitive prices.
Travelers Balance Price and Value
Rising prices are a challenge, with international flights to Southern Europe up 5% and package holidays up 7% in early 2025. Still, tourism expenditure across Europe is expected to rise by 13% compared to 2024, indicating travelers are willing to spend more for high-quality experiences.
Long-Haul Travel Bounces Back
Travel from long-haul markets like the United States and China showed strong resilience. Despite economic uncertainty, the U.S. market remains a major source of visitors, with the Nordics seeing strong growth in U.S. arrivals. Norway (+35%) and Denmark (+24%) reported significant increases in overnight stays.
Southern European destinations such as Croatia (+18%), Montenegro (+17%), and Greece (+16%) also experienced solid gains in U.S. arrivals.
Chinese tourism to Europe shows encouraging signs, with all reporting destinations recording an increase in arrivals compared to 2024. Croatia (+7%), Estonia (+15%), and Romania (+20%) have seen a notable boost, attributed to better flight connectivity.
As summer approaches, the tourism industry is set to grow, particularly in locations offering unique experiences, cultural attractions, and good value. Off-season travel patterns will continue to shape the industry.
The European Travel Commission emphasizes innovation and sustainability, investing in practices that benefit both travelers and local communities, ensuring a low environmental footprint.
Overall, European travel in Q2 2025 has been robust, especially in Malta, Cyprus, Latvia, Lithuania, and Hungary, and is expected to maintain its position as a top global destination through the summer months, driven by strong demand, sustainability, and value-led travel solutions.