Strategic Advisory

Q1 2025 Travel & Tourism Review: Global Momentum and Europe's Inbound Growth

May 25, 2025By G. Viliani
G. Viliani

Global Overview: Record-Breaking Projections for 2025

The global travel and tourism sector is on track for a historic year. According to the World Travel & Tourism Council (WTTC, May 2025 ), it is projected to generate $11.7 trillion in economic value, making up 10.3% of global GDP. International visitor spending is expected to reach $2.1 trillion, surpassing the previous record of $1.9 trillion set in 2019 (pre-pandemic). Employment in the sector is also set to grow, with an anticipated 14 million new jobs, bringing the total to 371 million globally.

Europe's Inbound Tourism: Q1 2025 Performance

In the first quarter of 2025, Europe recorded a 4.9% year-on-year increase in international tourist arrivals, with overnight stays rising by 2.2% (ETC, May 2025). This growth is especially notable given the current geopolitical and economic uncertainties.

The steady uptick in overnight stays underscores a broader recovery trend in European tourism, reflecting a growing preference for authentic and off-peak travel experiences (ETC, May 2025).

Key Trends in European Inbound Tourism

  • Emerging Destinations: Countries such as Latvia (+27.8%), Lithuania (+28.4%), Norway (+13.2%), Cyprus (+15%), and Malta (+13%) reported significant growth in visitor numbers in Q1 2025 compared to Q1 2024, driven by cultural events and improved connectivity (ETC, May 2025).
  • Long-Haul Markets: There was a notable increase in visitors from long-haul markets in Q1 2025. For example, Indian arrivals to Switzerland increased by 25%, while Chinese and Brazilian travelers boosted numbers in Norway, Central Europe, and Southern Europe (ETC, May 2025).
  • Spending Patterns: The ETC projects a 14% increase in tourist spending across Europe for 2025, outpacing the global average of 10%. Travelers are prioritizing premium experiences and longer stays.
  • Sustainability Focus: Looking ahead, the ETC projects a 14% increase in tourist spending across Europe for the full year 2025, outpacing the global average of 10%. Travelers are prioritizing premium experiences and longer stays (ETC, May 2025).


Conclusion


The first quarter of 2025 indicates a robust recovery for the global travel and tourism sector, with Europe showing notable resilience and growth in inbound tourism. Emerging destinations and long-haul markets are contributing to this positive trend, supported by increased spending and a focus on sustainability. 


Research and analysis provided by The Globexp for BGS Strategic Advisory.