European Tourism Shows Recovery Signs, but Uncertainty Remains
The European tourism sector is showing signs of recovery, with flight bookings to popular destinations like Greece, Portugal, and Spain surging for July and August. However, the road to full recovery remains uncertain and challenging.
Last year, from January to May, Europe witnessed a staggering -96.9% decline in bookings compared to 2019. Even in the first four months of 2021, international tourist arrivals were down by 44% compared to the same period in 2019. This year, travel to Europe is expected to be 54% lower than in 2019.
The global health crisis has left the sector facing a severe crisis, with tourism job losses in Europe in 2020 ranging between 14.2 million and 29.5 million. European countries most dependent on international source markets and with weaker traveler trust, particularly those in southern Europe like Italy, are at higher risk. Regions like Campania, Sicily, and Calabria, which have high poverty rates and social challenges, could further dampen visitor confidence.
Iceland, however, has bucked the trend by opening its borders to international travel this summer, despite a steep decline in arrivals, due to its successful virus containment.
While the increase in flight bookings to popular destinations is a positive sign, the European tourism sector's full recovery is not expected until 2023. Destinations relying more on domestic and short-haul travellers are likely to have a more stable and quicker recovery. The heightened uncertainty surrounding the sector's recovery underscores the need for continued vigilance and adaptive strategies.