Europe is expected to recover around 75% of 2019 travel volume by the end of 2022 | Tech US News

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A snow-covered village in the Alps - Source ETC
The challenging economic context will lead to a difficult winter for the tourism sector in Europe

European tourism resilient to low consumer confidence


European Travel Commission;

The European tourism sector successfully weathered another challenging summer as worsening inflation and staff shortages threatened recovery. European airlines held up well, with August flight volumes down just 11% compared to 2019. Encouraging data suggests a positive outlook for 2022, with the region expected to recover around 75% of 2019 inbound travel volumes this anus.

This is according to the most recent edition of the “Trends and perspectives of European tourism” quarterly report from the European Travel Commission (ETC), which predicts that the upswing in travel in Europe will continue in the remaining months of 2022, led by cost-conscious and value-oriented travel.

However, the winter will not be without its threats, as a looming recession and higher inflation across Europe will weigh on consumer spending and tourism demand, delaying but not derailing the recovery. The protracted war in Ukraine and additional travel restrictions for Russian tourists across Europe will also set back the recovery in Eastern Europe.

After the publication of the report, Luís Araújo, president of ETC, said: “European tourism is demonstrating an exceptional resistance to inflation. While the cost of living crisis is causing many to change their approach to travel, it is not dampening their desire to explore Europe in its entirety. Short-haul travel will be a lifesaver for the industry over the coming months as more travelers opt for shorter, closer trips. As we continue to navigate the challenges brought on by global uncertainty, it is critical to rebuild a sector that takes sustainability into account.”

Low consumer confidence to drive short-haul travel

Faced with economic uncertainty and rising inflation, ETC predicts that travelers will favor short-distance travel, which is usually cheaper. This September, consumer confidence in France hit a nine-year low. Similar trends were also witnessed in other major source markets such as the UK and Germany.

Overall, the price of a holiday will be a key deciding factor for households facing less disposable income. This can benefit Europe as intra-European holidays, as well as domestic travel, are often cheaper than long-haul alternatives. Short-haul travel currently accounts for around 72% of total visits in Europe and is set to grow in popularity over the rest of the year.

American vacationers capitalize on the strong US dollar

Long-haul travel to Europe is still significantly depressed, hampered by restrictions and lingering negative sentiment from Asia and the Pacific. The Chinese market, in particular, has shown minimal progress towards a recovery due to the slower removal of travel restrictions.

All hope is not lost for long-haul travel, however, as transatlantic tourism gets a boost from US holidaymakers benefiting from the strength of the US dollar, which has appreciated around 20% against the euro over the last anus.

A stronger dollar has already proved a lifesaver for many European destinations, with the latest data showing that three out of five reporting countries have recovered at least 70% of US travel volumes. USA of 2019 so far this year. Several destinations exceeded 2019 travel demand. Turkey (+61%) saw the biggest rise, followed by Portugal (+17%), Lithuania (+7%), Montenegro (+6%) and Poland (+6%) .

The full report can be downloaded from ETC here.

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