European Tourism 2025 – Trends & Prospects (Q2/2025)

Challenges continue to weigh on European tourism demand ahead of the peak summer season.

International tourist arrivals to Europe increased by a moderate 3.3% on last year based on data up to April-May. The sector continues to face rising operational costs which are passed on to the travellers. This translates into elevated travel-related prices weighing on consumers’ willingness to spend, particularly budget-conscious tourists.

Travel activity across reporting destinations continued its upward momentum so far in 2025. Malta stood out with a notable 19% increase in arrivals, albeit from a relatively low base, helped by strategic air connectivity developments. Cyprus saw a remarkable 16% surge (on a low base) attributed to its strategic geographical location and investments in infrastructure and marketing emphasising its appeal as a year-round destination. Central Eastern European destinations including Latvia (+16%), Lithuania (+15%) and Hungary (+14%) also posted strong year-on-year increases in arrivals reflecting a continued recovery despite travel volumes in most cases remaining below pre-pandemic levels.

Unbalanced tourism remains a pressing concern in certain locations. Reflecting this discontent, demonstrations against overcrowding were held in several European tourism hotspots, highlighting the need for more sustainable and balanced tourism strategies across the region. On the other hand, airlines are facing significant disruptions caused by the Israel-Iran conflict which has forced multiple carriers to avoid large parts of Middle Eastern airspace and rapidly cut flights to key Gulf destinations such as Dubai and Doha. These fast-moving developments could potentially have broader implications for long-haul travel from Asia and Oceania during the summer months, as reduced capacity and rerouted flights could affect air connectivity.

Please find the press release.