Friday, June 27, 2025
Greece has officially joined Spain, Portugal, Italy, France, Croatia, and Iceland in breaking 2025 tourism records, driven by a powerful combination of soaring international arrivals, record-setting travel revenue, and a historic boom in short-term rentals that reshaped its tourism season earlier than ever before. This milestone places Greece firmly among Europe’s tourism elite, as each of these countries leverages extended travel seasons, diversified visitor markets, and renewed global demand to redefine post-pandemic success across the continent.
These seven countries are setting the tone for a new era in European travel: longer seasons, wider regional dispersal, and stronger economic returns. Let’s break down what’s driving each country’s breakout year.
Greece: A Multi-Sector Tourism Revival in Full Swing
Greece’s tourism momentum has shifted into overdrive in 2025. From January through May, the country welcomed 6.3 million international air travelers, a 5.9% year-on-year increase that added over 350,000 passengers compared to the same stretch in 2024. Even more telling is how early the peak season is arriving. In May alone, Greece received 3 million arrivals, up 5.3%, signaling that travelers are eager to enjoy shoulder-season experiences in the Mediterranean.
But it’s not just about traffic volume—it’s also about spending. Between January and April, Greece saw €2.16 billion in travel receipts, a robust 10.6% jump. Growth was particularly strong among non-EU markets, with receipts from international visitors outside Europe rising 26% to hit €1.04 billion.
Regionally, Crete stood out with 1 million arrivals (+5.6%), followed by the Dodecanese with 786,000 arrivals (+3.3%) and the Ionian Islands with 547,000 (+5.2%). Even lesser-known regions like the Peloponnese surged 16%, showing that Greece’s push to spread visitors beyond classic hotspots is paying off. The only laggard was the Cyclades, down 15.3%, showing the pressures of crowding and seasonality.
The short-term rental market tells another story of resilience. In April, Greece recorded 228,000 active units, and in May, that number rose to 236,000, breaking the 1 million-bed threshold two months earlier than usual. These figures reveal how travelers are seeking flexible, authentic stays—away from cookie-cutter resorts and into real communities.
Greece City GuideAthensWhy go: Ancient ruins meet modern street life.Must-see: The Acropolis, Plaka neighborhood, and the Acropolis Museum.Tip: Visit in early spring or late autumn for thinner crowds and warm weather.Chania (Crete)Why go: Charming Venetian harbor with rich island culture.Must-see: Samaria Gorge, Old Town alleys, and local tavernas.Tip: Book a rental car to explore hidden beaches and mountain villages.Nafplio (Peloponnese)Why go: Romantic old town, coastal beauty, and neoclassical charm.Must-see: Palamidi Fortress, Bourtzi Castle, and Syntagma Square.Tip: Stay overnight to enjoy quiet sunsets and dine with locals.Spain: Winter Sun and Cultural Capital Drive High Volume
Spain has smashed records in early 2025, welcoming a massive 17 million international tourists in just the first quarter—5.7% more than the same period in 2024. This rise has been powered by sun-seekers flocking to the Canary and Balearic Islands, as well as city-hoppers drawn to Madrid and Barcelona’s cultural scenes.
Those visitors are spending more, too. In Q1 alone, Spain raked in €23.5 billion in international tourism revenue, reflecting a 7.2% increase year-on-year. Strong recovery across air, cruise, and rail travel helped generate these historic highs.
Accommodation demand has also climbed. According to the WTTC, Spain’s tourism sector could exceed €260 billion in total value this year. The rental and hotel segments are booming, with sustainable travel and regional expansion helping distribute visitors beyond traditional hotspots.
Spain City GuideMadridWhy go: Art, culture, tapas, and late-night energy.Must-see: Prado Museum, El Retiro Park, and Mercado de San Miguel.Tip: Try a tapas crawl in La Latina on a Sunday afternoon.BarcelonaWhy go: Gaudí’s surreal architecture and Mediterranean vibes.Must-see: Sagrada Família, Park Güell, and the Gothic Quarter.Tip: Book attractions weeks ahead—Barcelona is booming in 2025.SevilleWhy go: Flamenco, Moorish palaces, and orange-scented streets.Must-see: Real Alcázar, Seville Cathedral, and Metropol Parasol.Tip: Come in April for Feria de Abril, but book early.Portugal: Record Arrivals and Hotel Growth Across the Board
Portugal has firmly positioned itself among Europe’s tourism elite in 2025. While precise arrival figures for this year are still emerging, past performance shows 26.5 million tourists visited in 2023, and the country’s growth trajectory points steeply upward. Lisbon, Porto, and the Algarve are leading the charge.
Tourism is now contributing nearly 50% of the country’s GDP growth in early 2025, making it one of Portugal’s most important economic drivers. American and Brazilian travelers are boosting long-haul revenue, while intra-European travel remains strong.
The hotel and short-term rental markets are thriving. High RevPAR (revenue per available room) levels in major cities reflect premium demand, and short-term stays in rural areas are also rising, thanks to Portugal’s growing appeal among digital nomads and slow travelers.
Portugal City GuideLisbonWhy go: Hills, history, and hip cafés overlooking the Tagus River.Must-see: Belém Tower, Alfama, and LX Factory.Tip: Ride Tram 28 early in the day to beat crowds.PortoWhy go: Port wine, riverside charm, and baroque churches.Must-see: Livraria Lello, Dom Luís I Bridge, and wine cellars in Vila Nova de Gaia.Tip: Skip the taxis—walk or take the funicular for epic views.Faro (Algarve)Why go: Gateway to Portugal’s most stunning coastlines.Must-see: Ilha Deserta, the Bone Chapel, and old town.Tip: Take a boat tour through the Ria Formosa Natural Park.Italy: North to South, Tourism Hits New Heights
Italy is experiencing a tourism renaissance across both the north and south. While exact Q1 figures are limited, all signs point to a full recovery and expansion in 2025. Milan and Venice are seeing strong occupancy in the luxury sector, while the Amalfi Coast, Puglia, and Sicily continue to attract record summer bookings.
Cultural events, museum exhibitions, and religious festivals in Rome have extended the season, pulling visitors well beyond summer. Combined with growing air connectivity from the U.S. and Asia, Italy is capturing a bigger share of long-haul tourism in 2025.
The short-term rental scene is also booming. From cave homes in Matera to villas in Tuscany, Italian listings are seeing record demand. Cities are navigating tighter regulation as they try to balance authenticity, affordability, and neighborhood preservation.
Italy City GuideRomeWhy go: Living museum of Western civilization.Must-see: Colosseum, Vatican Museums, and Trastevere.Tip: Go at sunrise for crowd-free photos of iconic ruins.FlorenceWhy go: Birthplace of the Renaissance and a treasure chest of art.Must-see: Uffizi Gallery, Ponte Vecchio, and Duomo.Tip: Pre-book museum tickets and enjoy gelato at night along the Arno.MateraWhy go: Italy’s cave-city rising in popularity.Must-see: Sassi cave dwellings and rock churches.Tip: Stay in a renovated cave hotel for a truly unique experience.France: Olympic Buzz Fuels Nationwide Momentum
France has posted a 6% rise in international tourism receipts in Q1 2025, driven by robust recovery in long-haul travel and intra-European visits. Paris remains a magnet, but regions like the French Riviera, Lyon, and Provence are seeing significant increases in off-season and rural tourism as well.
The country’s rebound is being bolstered by major infrastructure upgrades following the Paris Olympics and increased global connectivity. France’s strong cultural heritage, food scene, and fashion economy continue to draw travelers seeking immersive, high-spend experiences.
Hotel performance is up, especially outside of Paris. Regional cities and countryside retreats are benefiting from expanded rental offerings, many of which cater to families, cyclists, and cultural tourists looking to escape the traditional urban loop.
France City GuideParisWhy go: Always a good idea—romance, art, and timeless flair.Must-see: Eiffel Tower, Musée d’Orsay, and Montmartre.Tip: Visit lesser-known museums like Musée Rodin for a quieter experience.NiceWhy go: A Riviera escape with a cosmopolitan twist.Must-see: Promenade des Anglais, Old Town, and Castle Hill.Tip: Take a short train ride to nearby Èze or Monaco.LyonWhy go: France’s food capital with riverside charm.Must-see: Vieux Lyon, Fourvière Basilica, and traboules.Tip: Try a traditional bouchon for authentic Lyonnaise cuisineCroatia: Beyond Summer, Beyond the Coast
Croatia was crowned Europe’s #1 travel destination for 2025 at ITB Berlin, a major tourism industry vote of confidence. After drawing nearly 20 million visitors in 2024, the country is expected to surpass that mark again this year, with coastal cities and national parks seeing high early-season traffic.
Tourism represents around 20% of Croatia’s GDP, and with sustained marketing in the U.S. and Germany, the country is expanding its visitor base. Airlines and cruise lines are adding stops in Split, Dubrovnik, and Rijeka to meet demand.
Accommodation growth is broadening beyond the coast. Nature lodges, Airbnb-style rentals in hilltop villages, and digital nomad hubs are seeing spikes in bookings—proof that Croatia is transitioning into a year-round destination with wide traveler appeal.
Croatia City GuideDubrovnikWhy go: Medieval walled city overlooking the Adriatic.Must-see: City Walls, Old Town, and Lokrum Island.Tip: Arrive early or stay overnight to avoid cruise ship crowds.SplitWhy go: Roman ruins meet lively coastal energy.Must-see: Diocletian’s Palace, Marjan Hill, and Bacvice Beach.Tip: Use Split as a base to explore nearby islands like Hvar and Brac.ZagrebWhy go: Croatia’s underrated capital with a quirky side.Must-see: Museum of Broken Relationships, St. Mark’s Church, and Dolac Market.Tip: Zagreb is ideal for an autumn city break when crowds thin out.Iceland: Nature, Safety, and Slow Travel Rule
Iceland continues to punch above its weight in global tourism. In 2025, Keflavík International Airport expects 8.4 million passengers, up slightly from 2024, confirming that the island’s remote appeal remains strong even in a crowded travel market.
Tourism-related VAT revenue has risen by 10% year-on-year, signaling higher spending per traveler. Iceland’s focus on small-group tours, sustainability, and high-end experiences is paying off, especially among North American visitors and eco-conscious travelers.
Short-term rentals and guesthouses in regions like the Westfjords, Snæfellsnes, and East Iceland are gaining popularity, allowing visitors to explore lesser-known landscapes. Iceland’s rental growth is closely tied to its strategy of spreading visitors away from Reykjavik to protect fragile ecosystems and ensure more balanced economic development.
Iceland City GuideReykjavikWhy go: Colorful streets, creative culture, and geothermal spas.Must-see: Hallgrímskirkja Church, Harpa Concert Hall, and Laugavegur.Tip: Try local craft beer and visit Sky Lagoon for fewer crowds than Blue Lagoon.AkureyriWhy go: Northern Iceland’s gateway to whales, waterfalls, and volcanoes.Must-see: Godafoss, Lake Mývatn, and whale watching tours.Tip: Fly from Reykjavik to save time, or make it part of a scenic road trip.VíkWhy go: Black sand beaches and dramatic Icelandic cliffs.Must-see: Reynisfjara Beach, Dyrhólaey Arch, and Skógafoss waterfall nearby.Tip: Stay overnight and catch the northern lights in shoulder seasons.Europe’s Tourism Leaders Are Redefining Travel in 2025
From the sun-drenched beaches of Crete to the icy plains of Iceland, Europe’s tourism leaders are showing what a coordinated, resilient, and visitor-focused strategy can accomplish. Greece, alongside Spain, Portugal, Italy, France, Croatia, and Iceland, isn’t just recovering—it’s thriving.
These countries are not only attracting more visitors—they’re transforming how, when, and where people travel. By expanding their seasons, improving infrastructure, diversifying source markets, and embracing the rental revolution, they are setting a new benchmark for global tourism recovery.
As 2025 unfolds, these nations will remain ones to watch—not just for their numbers, but for how they’re shaping the future of travel.
«Enjoyed this post? Never miss out on future posts by following us»
Tags: Croatia, Europe, france, greece, Iceland, Italy, Portugal, spain, Tourism news, travel industry, Travel News
