Now, European Tourism Holds Steady in Q2 2025: Malta Joins Cyprus, Latvia, Lithuania and Hungary In Leading the Growth

Europe's tourism sector demonstrated resilience in the second quarter of 2025, with international arrivals increasing by 3.3% compared to the same period in 2024. However, the number of nights spent declined slightly by 0.7%, a trend attributed to calendar effects, including the later timing of Easter and shifts in school holiday schedules. Despite these fluctuations, overall travel expenditure is projected to rise by 13% in 2025, indicating a higher average spend per trip.

Off-Season Travel Trends: Rising Demand for Sun and Beach Holidays

One of the key trends emerging in Q2 2025 is the rising demand for off-season sun and beach holidays. Search activity for spring getaways surged by 36% year-on-year among European travelers, as many opted for spring holidays to avoid the intense summer heat and overcrowded tourist spots. The later timing of Easter, which shifted to late April in 2025, contributed to this surge. However, the trend also points to changing traveler preferences, with an increasing number of individuals choosing destinations that offer pleasant weather during the shoulder season.

Malta, with its favorable climate and robust flight connections, experienced a 19% increase in arrivals in Q2 2025, marking it as one of the standout performers. Similarly, Cyprus posted a 16% rise in tourist numbers. Cyprus, which offers year-round appeal with its Mediterranean climate and rich cultural heritage, continues to benefit from increased flight availability and greater demand from both European and international travelers.

Additionally, Spain (+7%) and Portugal (+3%) also saw increases in tourist arrivals during the off-season. This demonstrates that even the larger Mediterranean destinations are increasingly benefiting from spring and shoulder-season tourism. Notably, these trends suggest that travelers are becoming more flexible and seeking alternative travel times to avoid the typical summer crowding and to benefit from lower prices.

Central and Eastern Europe: Strong Growth Amidst Recovery

Another area of notable growth in Q2 2025 is Central and Eastern Europe. Destinations such as Latvia, Lithuania, and Hungary reported impressive increases in international arrivals. Latvia saw a 16% year-on-year increase, Lithuania followed closely with a 15% rise, and Hungary recorded a 14% jump in tourist numbers. This growth is driven by a combination of factors, including better air connectivity and a continued recovery from the impacts of the COVID-19 pandemic and the regional effects of the Russo-Ukrainian war.

The resurgence of tourism in these regions is an encouraging sign, as many of these countries had previously struggled to attract large volumes of international visitors. With more flights, increased investment in tourism infrastructure, and a rich cultural and historical offering, these countries are quickly becoming appealing destinations for travelers seeking unique experiences in Europe.

This trend is expected to continue as more travelers look beyond the traditional hotspots of Western Europe, such as France, Italy, and Spain, to discover the charm and affordability of the Baltics and Central Europe. Latvia, Lithuania, and Hungary offer a wealth of history, architecture, and cultural events, providing travelers with immersive experiences at more competitive prices.

Price Sensitivity and Increasing Spending

One challenge facing the European tourism sector is rising prices. The cost of tourism-related services has increased across the continent, with international flights to Southern European destinations rising 5% and international package holidays increasing by 7% in the first four months of 2025. These price hikes are likely to influence travelers' choices, with many opting for destinations that offer better value for money.

Despite price sensitivity, the overall tourism spend in Europe is expected to increase significantly in 2025. Tourism expenditure across Europe is forecast to rise by 13% compared to 2024. This suggests that while consumers are becoming more price-conscious, they are still willing to spend more during their trips. Many travelers are choosing destinations that provide a combination of competitive prices and high-quality experiences, allowing them to get more value for their money.

Countries like Malta, Cyprus, and Portugal, which combine attractive pricing with high-quality tourism experiences, are well-positioned to benefit from this trend. These destinations offer a mix of natural beauty, cultural heritage, and affordable accommodations, making them appealing options for tourists looking for a great experience without overspending.

Long-Haul Travel Resilience

Travel from long-haul markets such as the United States and China also showed strong resilience in Q2 2025. Despite economic uncertainty and geopolitical tensions, the U.S. market continues to be a major source of visitors to Europe. U.S. travelers' desire for European experiences, from cultural cities to Mediterranean beaches, has remained robust, with the Nordics seeing strong growth in U.S. arrivals. Norway (+35%) and Denmark (+24%) reported significant year-on-year increases in overnight stays.

In addition to the Nordic region, Southern European destinations such as Croatia (+18%), Montenegro (+17%), and Greece (+16%) also experienced solid gains in U.S. arrivals. The affordability of certain Southern European destinations, coupled with their rich cultural offerings, has made them increasingly attractive to U.S. tourists.

On the other hand, the recovery of Chinese tourism to Europe has shown encouraging signs in Q2 2025. All reporting destinations in Europe have recorded an increase in Chinese arrivals or nights spent compared to the same period in 2024. Smaller destinations, such as Croatia (+7%), Estonia (+15%), and Romania (+20%), have seen a notable boost in Chinese tourism. This growth is partly attributed to better flight connectivity from Chinese cities to major European hubs like Paris and Madrid.

This resurgence of Chinese travelers is expected to continue, as rising incomes in China, improved flight connectivity, and favorable travel policies support the recovery of Chinese tourism to Europe. The shift away from U.S. travel to Europe among Chinese visitors, partly driven by geopolitical tensions, has also supported this trend.

Looking Ahead: European Tourism in the Summer of 2025