EUROPEAN TOURISM IN 2018: Quarterly Report (Q3/2018) A quarterly insights report produced for the Market Intelligence Groupof theEuropean Travel Commission (ETC) Brussels,November2018ETCMarket Intelligence Report Copyright © 2018European Travel Commission European Tourismin 2018: Trends & Prospects (Q3/2018) All rights reserved. The contents of this report may be quoted, provided the source is given accuratelyand clearly. Distribution or reproduction in full is permitted for own or internal use only. While we en-courage distribution via publicly accessible websites, this should be done via a link to ETC's corporate The designations employed and the presentation of material in this publication do not imply the ex- Data sources: This report includes data from the TourMIS database (http://www.tourmis.info), STR, Economic analysis and forecasts are provided by Tourism Economics and are for interpretation by us- Published and printed by the European Travel CommissionRue du Marché aux Herbes, 61, 1000 Brussels, BelgiumWebsite:www.etc-corporate.orgEmail:info@visiteurope.com ISSN No: 2034-9297 This report was compiled and edited by:Tourism Economics (an Oxford Economics Company) Cover:Foggy autumnal sunrise at famous Hallstatt lakeside town reflectingin Hallstattersee lake. Lo-cation: resort village Hallstatt, Salzkammergut region, Austria, Alps. Europe TABLE OF CONTENTS Foreword.............................................................................................................41. Tourism Performance Summary 2018............................................................82. Global Tourism Forecast Summary..............................................................123. Recent Industry Performance.......................................................................143.1Air Transport..........................................................................................143.2 Accommodation.....................................................................................184. Special Feature: A Burgeoning Trade War...................................................195. Key Source Market Performance..................................................................235.1Key Intra-European Markets..................................................................235.2 Non-European Markets..........................................................................296. Origin Market Share Analysis........................................................................336.1United States..........................................................................................346.2Canada...................................................................................................356.3Mexico....................................................................................................366.4Argentina................................................................................................376.5Brazil......................................................................................................386.6India.......................................................................................................39 FOREWORD SOUTHERN MEDITERRANEAN DESTINATIONS LEADSUBSTANTIAL European tourism enjoyed a sustained expansion amid less relaxed global finan-cial conditions and risks of a disruptive trade war posing a threat to global eco- Growth was synchronised with the positive economic conditions in Europe whichboosted intra-regional demand and was supported by improved airconnectivity, All but two reporting destinations delivered some form of growth, with 1 in 4 en-joying increases in excess of 10% in arrivalsterms. Southern Mediterranean des-tinations outperformed; in Turkey (+23%), fading security concerns and the de-preciationof the lira rendered the country more appealing to foreignholidaymakers. Greece (+19%) and Serbia (+15%) saw sizeable increases from International tourist arrivals to select destinations in 2018 2018 year-to-date*, %change year ago In Iceland (+6%) the substantial growth in arrivals from the US and Russia wasable to offset the declines from a wide range of source markets.Spain (-0.1%)felt the pinchin some areas due to lingering concerns regarding“over-tourism”,whilethe return of some“borrowed” marketshareto Turkeyled to the destina- AIRTRAVEL DEMAND AND ACCOMMODATION INDICATORS REMAIN Air travel flight strikes and a mixed economic outlook appear to have had animpact on European air traffic growth with RPK3slowing to 6.2% based on year-to-date figures. Travel to and from Asia/Pacific registered the fastest growthwithRPK9.5% higher than a year ago. Chinese carriers continue to drive the accel- European hotels fared well when compared to other world regions withhigheroccupancy (1.1%) and Average Daily Rates(1.9%) yielding 3% growth in Reve- ESCALATINGTRADE WARS AND A VOLATILE GLOBAL ECONOMICOUTLOOK. WHATARE THE IMPACTS ON TRAVEL FROM EUROPE’S Although the g