The World Travel & Tourism Council (WTTC) released a new report today at its Global Summit in Valletta, outlining eight strategic priorities for European governments to maintain the region’s leadership in travel and tourism. The document, titled Travel & Tourism in Europe: A Deep Dive Into Growth, Outlook and Policy, sets out the scale of the sector’s economic contribution and identifies practical policy recommendations to build on existing frameworks.
Europe’s tourism economy
The sector contributed nearly US$3 trillion to Europe’s GDP in 2025, representing 9.4% of the region’s economy. It supported 40.7 million jobs, or one in ten positions across the continent. Countries outside the EU accounted for more than a quarter of that contribution at US$834 billion, led by the United Kingdom, which remains the region’s second-largest Travel & Tourism economy.
In 2025, the region recorded 757.3 million international overnight arrivals, which represents 49.1% of the global total. International visitor spending reached US$835 billion, accounting for 41% of worldwide expenditure. Germany is the largest economy in the region at US$566 billion, followed by the UK (US$380 billion), France (US$312 billion), and Spain (US$291 billion). Spain leads in international visitor spending at US$130 billion, with per-visitor spending reaching US$796, 1.7 times the European average.
Malta, the host of this year’s summit, stood out as a top performer. The sector contributed US$4.6 billion to the Maltese economy in 2025, up 16.8% against 4% growth in the wider economy. It accounted for 16.6% of GDP and supported one in five jobs. International visitor spending hit US$3.9 billion, a 47.5% increase over 2019 levels.
Strategic priorities for the next decade
WTTC President & CEO Gloria Guevara said Europe is well-positioned to extend its global leadership. “Europe already welcomes almost half of the world’s international travellers,” she said. “As global travel keeps growing, Europe is well placed to extend that leadership, and the choices governments make now will decide how much of that growth comes here.”
The report identifies eight priorities to secure a larger share of the next decade’s growth. These priorities are aligned with globally endorsed strategies approved by WTTC’s Executive Council. They address challenges such as visa processing, investment gaps, and workforce shortages.
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Europe’s travel trade balance shows a significant structural issue. Almost three-quarters (74.3%) of international arrivals to Europe in 2025 came from within the continent. Excluding these internal trips, the region runs a travel trade deficit of roughly US$45 billion, as Europeans spend more on trips beyond the region than visitors from outside Europe spend locally. Arrivals from the Asia-Pacific region remain 4.8% below 2019 levels, with China still 43.2% down from pre-pandemic figures. WTTC recommends diversifying source markets through public-private marketing partnerships and easier visa access to address this imbalance.
Investment in the sector reached US$259 billion in 2025, a 7.1% year-on-year increase but still 3.6% below 2019 levels. Asia-Pacific and North America reported higher investment at US$395 billion and US$273 billion, respectively. WTTC is calling for Travel & Tourism to be recognised as a strategic ecosystem in the EU’s 2028–2034 Multiannual Financial Framework, alongside legal certainty and better access to finance for small and medium-sized enterprises.
Workforce demand is also outpacing supply. Young people hold 13.1% of direct jobs in Travel & Tourism against 8.3% across the wider economy. The workforce in Germany and Greece is projected to fall 26% and 27% short of demand by 2035. The report recommends apprenticeship pathways and wider recognition of the Hospitality and Tourism Skills Passport to bridge this gap.
Implementation and future outlook
Sustainable tourism practices are increasingly important. The sector accounted for 6.3% of Europe’s greenhouse gas emissions in 2024. Emissions intensity fell 14.8% between 2019 and 2024. WTTC recommends investment in climate adaptation and nature protection. Faster uptake of sustainable aviation fuels is also necessary.
Destination stewardship helps manage visitor numbers. Data tools can help spread tourists across places and seasons. This reduces pressure on popular sites. The EU Sustainable Tourism Strategy is set to launch in April 2026. This strategy will treat tourism as a strategic economic sector.
The European Parliament and the Council have both supported this approach. Their resolutions emphasize the need for dedicated funding. Over the next decade, the sector’s contribution to GDP is forecast to grow. It is expected to reach US$3.8 trillion by 2036.