Issue link: https://maltatoday.uberflip.com/i/1515985
4 NEWS 15.2.2024 European 2023 tourism recovery nears pre-pandemic levels ACCORDING to the latest edition of the European Travel Commission (ETC) 'European Tourism Trends & Prospects' report, towards the end of 2023, Euro- pean tourism continued its "robust" recovery, nearing pre-pandemic levels despite inflationary pressures. Across reporting destinations, for- eign tourist arrivals stand at 1.6% below 2019 figures, with nights 0.6% below, showcasing a resilient trav- el demand across the continent – a trend which is expected to continue into 2024. The quarterly report looks at the re- gion's tourism performance and eco- nomic indicators over the last months of 2023. The recovery is fuelled by strong in- tra-European travel, primarily from Germany, France, and the Nether- lands. Long-haul arrivals are also bouncing back, but at a slower pace and showing significant variations be- tween regions such as the Asia-Pacific and North America. ETC President, Miguel Sanz said: "The high travel demand seen in 2023 provided a significant boost to Euro- pean economies and will help improve the balance sheets of tourism com- panies, which were hard hit by trav- el restrictions. However, the return to pre-pandemic levels will also put pressure to accelerate the sustainable transition of the travel industry. "We are working to develop new indi- cators monitoring social and environ- mental factors that will contribute to producing tourism strategies to meas- ure not only the growth of the industry but also its impact on the environment, local communities, and businesses." European travel remained resilient in the last months of 2023, with two- thirds of destinations reporting either a full recovery or recording arriv- als and/or overnights within 10% of pre-pandemic levels. Among these, Southern European destinations con- tinue to be the frontrunners, boost- ed by favourable weather extending into the shoulder season. Serbia saw the largest surge in arrivals (+15%), alongside Portugal (+11%), Montene- gro (+10%), Turkey (+9%), and (+8%). They are also popular destinations for all-inclusive holidays and more af- fordable travel costs, which has been key to attracting price-conscious trav- ellers. Other countries also achieved a sig- nificant rebound compared to 2019: Iceland saw a 12% increase in arrivals even amidst volcanic eruptions, while the Netherlands grew tourist nights by 16% despite a smaller 2% rise in arrivals, indicating longer stays. In contrast, Eastern European destina- tions bordering Russia experienced a slower rebound, with countries like Lithuania (-32%), Latvia (-29%), Esto- nia (-27%), and Finland (-24%) lagging behind. The rebound in both arrivals and nights across Europe is occurring against the backdrop of inflation af- fecting both the industry and tourists alike. In Q4 2023, inflation surged by 23% compared to 2019 levels, with particularly pronounced increas- es seen in tourism-related expenses such as international flights (+49%), package holidays (+47%), and hotel prices (+35%). These higher prices have strained household finances, but they have not deterred the majority of those who wish to travel. Pricing pressures eased slightly over the latter months of 2023 compared to the previous quarter for tourism-re- lated costs but remain significantly elevated relative to pre-pandemic lev- els. While Chinese tourists represented 13% of Europe's long-haul arrivals in 2019, their return since China's reo- pening has been slow but steady. Chi- nese arrivals in 2023 stand at 67% be- low pre-pandemic levels, compared to the 22% average for all other long-haul source markets. Aside from capacity bottlenecks, Chinese travellers have remained risk-averse over the past year, swaying more towards domestic travel. European destinations can an- ticipate seeing further rebound from this market in 2024, predicted to reach 39% below 2019 figures. It is also ex- pected that generational changes and social media influences will increas- ingly reshape Chinese travel prefer- ences, sparking a shift towards luxury and more authentic experiences. On the contrary, North American markets, such as the US and Canada, have seen significant recovery. Two- thirds of European destinations have reported growth in arrivals and/or overnights from the US, while over half have seen the same for Canada. American and Canadian airlines an- nounced developments in combined flight-rail booking systems for Europe, offering a more sustainable travel op- tion when moving around the region. "The high travel demand seen in 2023 provided a significant boost to European economies and will help improve the balance sheets of tourism companies, which were hard hit by travel restrictions. However, the return to pre- pandemic levels will also put pressure to accelerate the sustainable transition of the travel industry." Foreign tourist arrivals to Europe were 1.6% below 2019 figures in the final quarter of 2023