Data for the pre-Summer period points to a tempered growth for European tourism. Nearly all of destinations reporting figures through March-June post positive growth, in keeping with the just released report on ‘European Tourism in 2013 – Trends & Prospects’ released by the eu Travel Commission (ETC).
ETC expects that the imminent peak summer time will consolidate its positive expectations for 2013 (+1% to +3%). Yet, the persistence of a negative financial system demands a joint effort of both the private and non-private sector to create coherent stimuli and to sustain future growth.
Data for the pre-Summer period points to a tempered growth for European tourism, despite the persistent economic malaise of the Euro-area. Out of twenty-two destinations reporting foreign visitors’ arrivals through March-June 2013, the overwhelming majority post positive growth. As tourists remain cost conscious, the expansion in overnight stays remains subdued in comparison with that of arrivals. Capacity growth has also been constrained, despite demand expansion.
Smaller destinations lead growth in foreign arrivals. Figures available up to now show Iceland (30%) and Slovakia (20%) as top performers with regards to foreign tourist arrivals growth. Montenegro, Latvia and Croatia follow with a growth around 9%, Hungary and Poland with a growth of seven%. At the other end of the spectrum, Cyprus marked a depressed -12%, as a result of negative publicity received originally of the year.
Growth in overnights remains subdued in comparison to that of arrivals, as travellers remain cost conscious. Notable exceptions are Latvia (+9% in arrivals and +14% in overnights), Croatia (+9% and +11% respectively), Malta (+7% and +10% respectively) and Czech Republic (+3% and +4%). The reverse trend in these destinations finds its roots in increasing visits from long-stay markets and segments, the establishment of latest connections with medium and long-haul markets or reduced fiscal pressure on tourism services.
First months’ performance reflects robust outbound travel from key markets
Overall data paints a favorable picture for outbound travel from intra-European markets. After few years of weak demand, most destinations report growth from the French and UK markets, and the German market consolidates the positive performance of past years. Russian demand also persists strong, bringing conspicuous gains to the Eastern European destinations. The image looks weaker instead for the Dutch and Italian market, via stalled economic growth.
Long-haul markets continue to guide the expansion in relative terms. Chinese travel, fostered by the emerging middle class, remains well earlier than economic growth, with nearly all of destinations reporting double digit increases when it comes to arrivals and overnights. Travel from US remains solid for almost all of reporting destinations. Outbound travel from Japan looks pale against expectations, as currency depreciation offsets the positive effects of business stimuli.
Harmonised stimuli to sustain future growth
As the year progresses, Europe’s economic outlook looks brighter and consumers become less pessimistic about their future economic prospects. Yet, the persistence of uncertainties regarding intra-European markets and their consequences on travel patterns requires strong stimuli to sustain future tourism growth. To effectively steer the industry and accomplish growth objectives, both the private and non-private sector have to unify behind the ambition for growth. The coordinated effort of tourism authorities and industries can produce durable effects within the short-term provided that well orchestrated. The threat, otherwise, is for individual efforts to disappear.
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