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Europe Has Positive Start to 2019, But Challenges Ahead

Europe kicked off 2019 on a positive note, according to the European Travel Commission’s latest quarterly report, “European Tourism – Trends & Prospects 2019,” following an impressive 6% growth in 2018.

Looking ahead to the rest of the year, a more moderate rate of expansion is expected for 2019 (around 3.6%), with short term risks, such as the slowing global economy, trade tensions and political uncertainty weighing on growth projections.

Despite challenges, the majority of destinations which have reported data for early-2019 performances, have shown continued growth in foreign arrivals and overnight stays. Among the most impressive performers is Montenegro, which has invested in improved winter infrastructure allowing the destination to extend the tourism season for interested travellers. This investment, coupled with significant promotional activities and improved air connectivity, has seen the country record growth of 41% in arrivals compared to the same period a year ago.

Other destinations that have experienced considerable growth in international arrivals are Turkey and Ireland, (both +7%). Despite lingering weakness in the value of pound relative to the euro, growth in travel to Ireland from the UK was modest, but significant given the UK accounts for over 40% of total arrivals to Ireland. Amidst the Brexit downturn, Ireland is set to reduce reliance on its second largest source market through a market diversification approach. Elsewhere, large destinations such as Portugal (+6%) and Spain (+2%) broke arrival records in absolute terms early in the year, benefiting from increasing year-on-year tourism revenues. While both gained market share during this period, the strong recovery of the Turkish tourism sector means these Iberian destinations will face significant challenges for the remainder of 2019.

Speaking following the launch of the report, Eduardo Santander, executive director of ETC said, “The European tourism industry has yet again proved popular in early 2019. Strong air connectivity, significant promotional activities and strong demand from Europe’s largest long-haul source markets have all played a key part in delivering this growth. However, at all times, it is important for us to be conscious of the challenges that lie ahead. We must work together across Europe, with the assistance of European and national policy-makers, to ensure the drivers of sustainable tourism growth are in place for the benefit of all.”

(https://etc-corporate.org/reports/european-tourism-trends-prospects-q1-2019)

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