European Travel is Up, But Can It Continue Growing?

James Ruggia
by James Ruggia
Last updated: 3:08 PM ET, Mon July 14, 2014

PHOTO: It's no time for Europe to rest on laurels. Above Benvenutto Cellini's Salt Cellar at Vienna's Kunsthistoriches Museum. (Courtesy of Austrian Tourism Board)

European Travel Commission (ETC) Executive Director Eduardo Santander embraced the positive results that just came in with the report, "European Tourism 2014 - Trends & Prospects" with a challenge to the ETC's 33 destination members to stay creative. "In key long-haul markets, where the largest potential for growth is, the match is won by those who can truly inspire, excite and engage potential travelers to experience their destination," he said.

Europe, long accustomed to ruling the roost of international travel, is well aware of the new alternatives for consumers to choose from. Europe remains the world's No. 1 tourist destination with 563 million international arrivals and more than 50 percent of the market share of worldwide tourism.

The European combination of culture, history and great Mediterranean Beaches has many destinations contending. Southeast Asia adds the exotic and unfamiliar in its challenge to Mediterranean island tourism. Thailand, Vietnam and Cambodia as well as Burma can show a history of civilization comparable to Greece, Italy and Turkey. The Andes, the Himalayas, the Rockies and New Zealand's Southern Alps can challenge the European Alps. Those are just two comparisons.

Santander's warning should be well taken as European laurels won't continue to win this contest without a continued infusion of creative tourism product. "In an increasingly vibrant landscape, marked by new players, technological innovation and rapidly changing consumers, the need arises for European destinations to challenge the traditionally-held perceptions of Europe" said Santander.

Warnings aside, Europe is justifiably excited about an upcoming peak-summer season and a persistent long-term demand for its destinations from both intraregional and overseas markets. The report compiled March, April and June figures from its members. Overnights shrank in Europe due to a revival of intra-regional travel. Short-haul travelers take shorter vacations than long-haul travelers.

For that reason, fewer overnights can be interpreted as a positive. Italy, for instance, is showing much greater consumer confidence as its economic fortunes rise out of the tank, giving Italians a chance to take weekends in Switzerland or France. Spain (+9 percent in arrivals and +12 percent in overnights) and Germany (+4 percent and +5 percent respectively) succeeded in growing both length of stay and arrivals. Iceland (+31 percent) leads the way among the fastest growing Nordic countries in terms of international arrivals, followed by Lithuania and Latvia (both +17 percent) in the Baltics and Serbia (+15 percent) in the Balkans.

Having avoided a total economic collapse with a much derided stimulus package, the U.S. economy has seen a growth in jobs for 46 straight months, boosting consumer confidence and giving Europe a bright outlook in a market it's long dominated. The U.S. is Europe's top long-haul market. More than 40 percent of American travelers heading abroad are heading to Europe.


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James Ruggia

James Ruggia

James Ruggia is executive editor covering Europe, Pacific Asia and rail travel for TravelPulse.com.

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