In 2024, Europe solidified its position as the most visited continent, welcoming 747 million tourists, with Spain and France at the forefront. Tourism has regained a share of GDP that is equivalent to or slightly higher than pre-pandemic levels, particularly in France and Spain. The tourism industry is more than ever a vital engine for the economic advancement of most European countries, potentially rivaling traditional manufacturing sectors.
Indeed, the tourism’s direct and indirect contribution to GDP has risen to levels comparable to those of manufacturing: higher in Spain (14.5% versus 10.9% in 2023), comparable in France (8.8% versus 9.7%), lower in Italy (10.5% versus 15.4%) and Germany (11% versus 18.5%). Tourism employment accounts for nearly 9.1% of total employment at the European level, with a particularly high share in Greece and Spain - around 14%.
The tourism sector has particularly proven to be a pivotal element in Spain’s economic recovery, attracting a record number of 95 million visitors in 2024*. As the second most popular tourist destination after France (and ahead of the United States), Spain has capitalized on its strengths to offer new travel models that are more authentic in less crowded destinations, promoting sustainable tourism.
However, the tourism industry is not without its challenges, facing inflationary pressures and a shortage of skilled labor. Post-COVID inflation has led to increased costs, impacting tourists' purchasing power and prompting a shift towards more budget-friendly destinations. Countries such as Albania and Serbia have experienced significant growth in visitor numbers, with revenue surging by 128% and 126%, respectively, between 2023 and 2024.
Additionally, the sector is contending with a vacancy rate of 3.3% for tourism jobs, which is higher than the EU average of 2.4%, emphasizing the urgent need for skilled labor to sustain the growth of the sector.
Want to discover how Europe is harnessing the industry's potential? Read our special report by Justine Grenon, Emeline Gorguet, Hadrien Camatte and Jesus Castillo from Natixis CIB Research!
*According to preliminary estimates
