RESTARING TOURISM FOR THE BETTER:PERFORMANCE OF EUROPEAN TOURISM The preparation and completion of this report hadtaken place before the Russianinvasion of Ukraine began. Therefore, Section 3 "European Tourism Outlook" of the Copyright © 2022, European Travel Commission (ETC), Atout France All rights reserved. The contents of this report may be quoted, provided thesource is given accurately andclearly. Distribution or reproduction in full is permitted for own or internal use only. While we encourage distribution via publicly accessible websites, this should be done via a link to ETC's corporate website ( , referring visitors to the Research/Trends Watch section. The designations employed and the presentation of material in this publication do not imply the expression ofany opinionswhatsoever on the part of the Executive Unit of the European Travel Commission. Published by: Atout France200/216 Rue Raymond LosserandCS 60043–75680 Paris Cedex 14 France The European Travel CommissionRue du Marché aux Herbes, 61,1000 Brussels, BelgiumWebsite:www.etc-corporate.org This report was compiled by:MINDHAUS I V+O Group ISBN:978-92-95107-59-5 Coverphoto:Scenic view of the French Riviera coastImage ID:1908841444Copyright: The Belgian Nomad ACKNOWLEDGEMENTS This studyresults froma joint effort of the European Travel Commission (ETC) and Atout France. This study was prepared by Dr Eran Ketter (MINDHAUS I V+O Group), and the aboveorganisationswould like to put on the record their gratitude to him and the whole team of MINDHAUS I V+O Group This report was carried out under the supervision of Lyublena Dimova (ETC Executive Unit), HugoAlvarez(Atout France),Jennifer Iduh (ETC Executive Unit) and James Arnold (ETC Executive Unit). In addition, ETC and Atout France owe their special thanks to Stephen Rooney (Tourism Economics)for contributing to this project with Tourism Economics’ expertise and intelligence. TABLE OF CONTENTS ACKNOWLEDGEMENTS........................................................................................................................3 EXECUTIVE SUMMARY.........................................................................................................................6 TOURISM HAS EXPERIENCED A GOLDEN AGE IN EUROPE BEFORE THE PANDEMIC.........10EUROPE’S TOURISM PERFORMANCE.........................................................................................11TOURISM: A POWERFUL–YET CHALLENGED–DRIVER OF ECONOMIC GROWTH.............14 2. EUROPEAN TRAVEL AND TOURISMDURING THE PANDEMIC.................................................16 2020: WHEN THE WORLD STOOD STILL & TRAVEL CAME TO A HALT....................................16THE PANDEMIC HIT EUROPEAN TOURISM DEPENDENT ECONOMIES & COMMUNITIES 3. EUROPEAN TOURISM OUTLOOK..................................................................................................26 TOWARDS A TWO-SPEED RECOVERY: DOMESTIC AND INTRA-EUROPEAN LEISURETRAVELHAVE ALREADY RESTARTED, PERSPECTIVES FOR LONG-HAUL ANDBUSINESS TRAVELERS REMAIN GLOOMY.................................................................................26 APPENDIX 1..........................................................................................................................................35 LIST OF FIGURES AND TABLES Figure 1 International visitor arrivals by region, 2020-2021..................................................................................6Figure 2. Europe recovery by travel segments....................................................................................................7Figure 3. Tourist arrivals globally and to world regions in 2010-2019.............................................................10Figure 4. Share of tourist arrivals and receipts to Europe versus competing regions.......................................10Figure 5. Shareof international tourist arrivals from the highest-volume EU source marketsto European destinations in 2019.......................................................................................................................12Figure 6. Share of international tourist arrivals from the highest-volume non-EU source marketsto European destinations in 2019.......................................................................................................................13Figure 7. International visitor arrivals by region (% change), 2019-2021..........................................................16Figure 8.Tourism Direct Gross Domestic Product, 2019-2021.........................................................................17Figure 9. German visits and overnights to select destinations..........................................................................20Figure 10. United Kingdom visits and overnights to select destinations............................................................20 Table 1. Top European destinations in 2019 in terms of international touristarrivals and receipts 11Table