New travelers, new destinations and changing demand are giving the European tourism market a different face over the next ten years, according to a new report by Accor, a world-leading hospitality group.
The report is based on forecasts that Accor commissioned from the internationally leading economic research agency. Tourism Economics. According to the report, demand for tourist accommodation in Europe will grow by 32 percent over the next ten years. That amounts to more than 1.6 billion additional overnight stays per year.
That growth comes mainly from international travelers. The number of international overnight stays is expected to increase by 42 percent between 2026 and 2036, compared to 24 percent for domestic trips. This will generate about a billion additional international overnight stays per year in Europe. According to the report, the growing global prosperity, increasing international mobility, better connections, and continued investment in tourism infrastructure are all contributing to more and more international travelers coming to destinations across Europe, even beyond the well-known tourist hotspots.
Travel within Europe remains the foundation of the European tourism sector. In 2036, it is expected that well over three-quarters (77 percent) of international visitors will come from Europe itself.
The report does, however, point to rapid growth from emerging European source markets. The number of visitors from these countries is expected to increase by 52 percent over the next ten years, compared with 34 percent from Western Europe. Georgia (+123 percent), Moldova (+107 percent) and Armenia (+76 percent) are among the fastest growing markets. The number of visitors from outside Europe is also expected to increase significantly. The number of visitors from the Middle East is expected to grow by 93 percent over the next ten years, and from Asia-Pacific by 88 percent, as global prosperity increases and more consumers travel internationally. Of the major source markets outside Europe, China (+138 percent) and South Korea (+121 percent) show strong growth.
Established destinations such as Spain, France and the United Kingdom remain dominant, resilient and popular. The five largest destination countries are expected to together account for more than half of all international overnight stays in 2036. Yet, according to the report, some of the strongest growth is taking place outside the traditional tourist hotspots of Europe. For example, international tourism is growing in Central and Eastern Europe, the Baltic states and parts of the Balkans, expected to grow at a much faster rate than in Europe on average. These destinations benefit from increasingly better connections and travelers’ demand for new, affordable travel experiences. This offers investors, project developers and hotel owners the opportunity to enter markets where tourism is still in full development at an early stage.
According to the report, there are great opportunities for the budget segment now that international travel is becoming accessible to a broader and more diverse group of consumers. Many of these new travelers rely on well-known budget brands when they navigate unfamiliar cities, languages, and booking systems. This applies to visitors from fast-growing source markets outside Europe, such as China and India, as well as to travelers from emerging European economies with rising incomes and increasingly better connections.
“Europe remains the most beloved destination in the world thanks to its enormous diversity. The hospitality industry has every reason to look to the future with confidence. Few places offer such a rich mix of cultures, landscapes, cities, coasts, heritage, food and experiences, and within such a well-connected and accessible area. “Established tourism markets continue to perform well, but the growth of the coming decade is determined by new travelers, new destinations and new demand patterns, as travelers seek out other places and experiences. The companies that best understand these shifts and adapt to them most quickly will benefit the most from the changing demand.”
Erwin van der Graaf, spokesperson for Accor
Other notable findings from the report: