- Europe’s tourism sector is showing strong resilience in 2025, with a projected 9.9% increase in traveler spending despite rising costs and heatwaves.
- Finland and Norway led Northern Europe with strong $14\%$ growth, while Poland and Hungary benefited from competitive pricing and high value for money.
- The adoption of Artificial Intelligence (AI) for travel planning has nearly doubled, reaching $18\%$ in Europe, driven by Gen Z and Millennials seeking better deals and off-peak travel.
- Long-haul travel from Asia is surging, with Japan ($+24\%$) and China ($+21\%$) arrivals increasing significantly year-on-year.
Europe’s tourism sector is experiencing a period of resilient growth in 2025, driven by both robust consumer demand and strategic adaptation to new challenges. The European Travel Commission’s (ETC) Q3 report shows a 9.9% expected rise in traveler spending for the year, underscoring strong consumer confidence despite high costs and extreme summer heatwaves. Out of 34 reporting countries, 30 reported increases in international arrivals or overnight stays.
Growth performance varied regionally. Southern Mediterranean destinations, including Malta and Cyprus , led the surge, benefiting from traditional sun-and-beach tourism. Northern European nations, such as Norway and Finland , also posted strong gains, attracting visitors seeking cooler climates and nature. Meanwhile, Central and Eastern European countries like Poland and Hungary capitalized on their affordability, drawing travelers seeking good value for money compared to more expensive Western European hubs.
The sector is also seeing a significant shift in consumer habits, heavily influenced by digital tools. The adoption of Artificial Intelligence (AI) for travel planning has nearly doubled, rising to 18% in 2025, led primarily by Gen Z and Millennials. Travelers are increasingly using AI to find better deals and plan trips during off-peak times to avoid crowds and high summer heat. Furthermore, long-haul recovery is accelerating, with arrivals from Japan and China surging year-on-year although volume often remains below pre-pandemic levels.