Published on
August 9, 2025 |
By: Tuhin Sarkar
Croatia joins United States, Greece, Türkiye, Thailand in reporting sharp tourism slump and reasons are many, and here is a new report that explains why. In July 2025, Croatia welcomed 4.6 million visitors. This was 2 percent less than in July 2024. Overnight stays totalled 29.2 million, a drop of 1 percent. The decline was felt in both foreign and domestic tourism. Nearly 4.2 million foreign tourists arrived, marking a 1 to 2 percent fall. Domestic tourism recorded 429,000 arrivals and 3.3 million overnight stays, both down 1 percent compared to last year.
Croatia joins United States, Greece, Türkiye, Thailand in reporting sharp tourism slump during the peak season. These figures highlight a softer summer peak, especially from certain source markets, despite the country’s strong appeal. For Croatia, this slump comes at a time when competition from other Mediterranean destinations is strong, and visitor behaviour is changing. Germany, Slovenia, and Austria all sent fewer tourists, while growth from the US and UK was not enough to balance the loss.
Croatia joins United States, Greece, Türkiye, Thailand in reporting sharp tourism slump that reflects global travel pressures. Rising costs, shifting holiday calendars, and economic uncertainty have influenced traveller decisions. Some destinations, like Greece and Thailand, face market-specific challenges, while others, like Türkiye, see softer bookings after record years. For Croatia, the drop in July signals the need to adapt marketing and pricing strategies to protect future summer seasons.
Croatia’s July 2025 tourism results show both growth and decline. Visitor numbers fell slightly, yet hotels recorded more overnight stays. Key markets such as Germany and Austria saw fewer arrivals, while Poland, the UK, and the US delivered gains. These mixed results reveal shifting travel patterns during the peak summer season.
July Sees Small Dip in Visitor Numbers
In July 2025, Croatia welcomed 4.6 million visitors. This was 2 percent less than in July 2024. Overnight stays totalled 29.2 million, a drop of 1 percent. The decline was felt in both foreign and domestic tourism. Nearly 4.2 million foreign tourists arrived, marking a 1 to 2 percent fall. Domestic tourism recorded 429,000 arrivals and 3.3 million overnight stays, both down 1 percent compared to last year. These figures highlight a softer summer peak, especially from certain source markets, despite the country’s strong appeal.
Tourism in July 2025 showed a mix of growth and decline around the world. Some countries welcomed record numbers of visitors, while others saw drops due to economic pressures, political challenges, or local issues. The month highlighted how travel trends are shifting. Some destinations faced fewer arrivals than last year, while others benefited from new markets and better connections.
Tourism Declines Show a Changing Global Travel Map
July 2025 confirmed that no destination is guaranteed steady growth. Even strong tourism markets can experience setbacks when local or global factors change. Countries such as the United States and Croatia reported clear national declines for the month. Others, like Thailand and Türkiye, saw softer results compared to last year.
These changes often come from a mix of reasons — from higher prices and weaker demand to seasonal changes and even natural events. Understanding why these drops happen can help countries prepare better for future travel seasons.
United States Sees Fewer International Visitors
The United States recorded a fall in international arrivals in July 2025. Arrivals were down by 5.1% compared to the same month last year. This decline also matched a broader trend for the first seven months of the year, which were down 3.8% year-on-year.
The drop comes despite the US remaining one of the most popular travel destinations in the world. Several factors likely played a part, including the strong US dollar, which made trips more expensive for foreign visitors, and higher travel costs overall. Economic uncertainty in some key markets may also have kept visitors away.
Croatia Records National Decline in Peak Summer
Croatia’s July 2025 results were a surprise to many in the industry. The country welcomed 4.6 million visitors in July, which was 2% less than in July 2024. Overnight stays fell by 1%, reaching 29.2 million. Both foreign and domestic tourism slipped slightly, with foreign arrivals down between 1–2% and domestic down 1%.
Hotels did well, with a 2.3% increase in overnight stays. However, private accommodation and campsites saw fewer bookings. Even though more apartments were available, many remained empty. The decline came during what is normally Croatia’s busiest tourism month, showing how changes in travel demand can affect even strong summer markets.
Thailand Experiences a Year-to-Date Fall
Thailand’s tourism performance through to late July 2025 showed a 6.18% decline in foreign arrivals compared to the same period in 2024. While this figure is for the year so far rather than July alone, it includes the mid-year peak season for some of its markets.
Thailand’s tourism sector has been facing stronger competition from other Southeast Asian destinations, currency shifts, and the impact of higher travel costs. Some of its traditional source markets have reduced travel due to economic pressures at home.
Türkiye Faces Mid-Summer Softness
Türkiye’s official July tourism data is due later in August, but early signs from June 2025 point to a softer summer season. Foreign visitors in June were down 1.5% compared to the same month in 2024. Industry updates from July suggest this slowdown continued into the peak season.
This easing comes after several strong years for Türkiye’s tourism industry. Factors such as rising prices, competition from other Mediterranean destinations, and changes in flight capacity may have affected demand.
Local Declines Can Be Just as Impactful
Not all declines are national. In some cases, key destinations within a country see drops even while the overall national figures remain stable or positive. A good example is Greece in July 2025.
Santorini Struggles in Peak Season
Santorini, one of Greece’s most famous islands, saw a noticeable drop in visitor numbers. Airport arrivals for the first half of 2025 were down 19.1% compared to the same period in 2024. The decline was sharpest from major European markets, with UK arrivals down 22.9%, French arrivals down 37.6%, and German arrivals down 11.6%.
These figures are linked to a series of earthquakes earlier in the year that hurt travel confidence. Reports from late July describe the island as quieter than usual during its busiest period. For a destination that relies heavily on high-spending summer visitors, this decline is significant.
Mykonos Sees Softer Demand
Mykonos also faced softer demand in summer 2025. Air arrivals were down 8% through April, and while June saw some recovery, high-end accommodation bookings were weaker. The island’s luxury segment, in particular, felt the impact of shifting travel budgets.
Las Vegas Faces a Summer Drop in Hotel Occupancy
In the United States, not only did national inbound tourism fall, but specific destinations also saw weaker performance. Las Vegas recorded an 8.1% drop in hotel occupancy in July 2025 compared to the same month last year. Analysts link this to price fatigue among travellers, with high room rates making some visitors reconsider their plans.
This shows how even in countries with a big tourism industry, individual cities can feel different pressures. Local pricing, events calendars, and competition from other destinations all shape these results.
Why These Declines Matter
Tourism is a major source of income for many countries and cities. When arrivals drop, the impact spreads to hotels, restaurants, shops, and transport services. Seasonal declines can affect jobs, local business earnings, and even government tax revenues.
For destinations like Santorini or Croatia, a drop during peak season is especially worrying. Many businesses make most of their annual income in just a few months. If visitor numbers fall, the effects can last long after the tourists have gone home.
Common Factors Behind the July 2025 Declines
Looking across these destinations, several shared themes emerge:
Economic pressures: Strong currencies or high inflation in source markets can make travel more expensive.High travel costs: Rising airfares and accommodation prices can push travellers to choose cheaper destinations or stay home.Natural events: Earthquakes or severe weather can dent demand quickly, even if the damage is minimal.Competition: Destinations compete for the same travellers. When one country launches strong promotions, others can lose market share.Visitor sentiment: Concerns about overcrowding, protests, or political tensions can deter bookings.Strategies to Reduce the Impact
Destinations facing declines often respond with targeted strategies:
Expanding to new markets to make up for losses in traditional ones.Running off-season campaigns to spread demand more evenly.Offering better value deals to attract price-sensitive travellers.Improving infrastructure and services to enhance visitor experience.Communicating safety and readiness after natural events to rebuild confidence.The Bigger Picture for Global Tourism
While some destinations saw declines in July 2025, global travel demand remains strong overall. Many countries, particularly in Europe and Asia, posted growth for the month. The declines show that the tourism landscape is not uniform — growth in one place can happen alongside drops in another.
These differences highlight the importance of flexibility in tourism planning. Destinations that adapt quickly to changes in demand are better placed to protect their industry and jobs.
July 2025 offered a clear reminder that tourism is sensitive to many factors, from currency shifts to local events. The United States, Croatia, Thailand, and Türkiye all felt the effects of weaker demand, while popular spots like Santorini, Mykonos, and Las Vegas also recorded declines.
For the travel industry, these results underline the need to monitor trends closely, respond quickly to challenges, and diversify both markets and offerings. With the right strategies, destinations can recover from seasonal drops and continue to attract visitors year after year.
Accommodation Trends Highlight Hotel Growth
Different accommodation types performed unevenly. Private accommodation remained the most popular, with 12.3 million overnight stays. Yet, this was 2.3 percent less than last year. Campsites saw 5.7 million overnight stays, down 1.1 percent. In contrast, hotels grew in demand. They hosted over 4.8 million overnight stays in July — a 2.3 percent rise from 2024. This shift suggests travellers are seeking more comfort and full-service experiences, even as apartment supply increased. Many private apartments still stayed empty during the season’s peak, showing a change in booking behaviour.
Source Market Shifts Affect Tourism Balance
Germany remained Croatia’s biggest source market, but arrivals fell by about 7 percent in July. One reason was that school holidays in key German states began only in early August. Slovenia saw a 3 percent drop, Austria over 5 percent, and the Czech Republic more than 4 percent. On the positive side, Poland’s arrivals grew by about 7 percent. The UK posted a small gain. The US market kept growing strongly, recording double-digit increases in overnight stays compared to last July. These shifts indicate changing holiday calendars and emerging preferences among travellers.
Year-to-Date Tourism Still Shows Growth
Despite a slower July, Croatia’s tourism for the first seven months of 2025 stayed positive. A total of 12.2 million tourists visited, 2 percent more than in the same period last year. Overnight stays rose by 2 percent to 58.7 million. Foreign arrivals were up 1 percent at 10.3 million, with 51.4 million overnight stays. Domestic tourism grew faster, with arrivals up 8 percent to 1.8 million and overnight stays up 6 percent to 7.3 million. These figures suggest resilience in the market, even with shifting seasonal patterns.
Popular Regions Continue to Attract Crowds
As of early August, more than one million tourists were staying in Croatia. The largest numbers came from Germany and Croatia, followed by Slovenia, Austria, Poland, the Czech Republic, and the Netherlands. The most visited regions included Istria, Split-Dalmatia, and Primorje-Gorski Kotar. These destinations remain Croatia’s strongest summer hubs, offering a mix of coastal charm, cultural heritage, and diverse accommodation options. Their continued popularity supports regional economies and keeps Croatia’s tourism map balanced.
European Tourism Holds Steady Amid Challenges
In July 2025, European destinations welcomed more visitors despite economic and political pressures. International tourist arrivals rose 3.3% year-on-year. Overnight stays dropped by 0.7%, partly due to the late Easter holiday affecting seasonal patterns. Tourist spending is forecast to grow by 13% in 2025 compared to 2024, showing travellers are still willing to spend even with higher costs.
The EU recorded 452.4 million tourism nights in the first quarter of 2025. This steady demand shows the region’s ability to attract both repeat visitors and new markets. The challenge ahead is to manage growth in ways that protect destinations and local communities.
Standout Country Performances in 2025
Some countries saw exceptional growth. Denmark led with a 24% increase in arrivals, reaching one million visitors. Malta rose by 19%, Cyprus and Latvia each gained 16%, and Lithuania grew by 15%. These countries benefited from improved air connections and targeted marketing campaigns.
By volume, Spain topped the list with 9.48 million arrivals in July, up 1.9%. Italy followed with 8.6 million arrivals, a 7% increase. The UK hosted 8 million visitors, growing 5%, while Germany had 6.5 million arrivals, up 2.7%. France saw a 2% decline, receiving five million visitors.
Southern and Mediterranean Tourism Trends
Spain remained Europe’s most visited country, attracting 44.5 million tourists in the first half of the year. This was a 4.7% rise despite large anti-tourism protests in Barcelona, Mallorca, and the Canary Islands. Average spending per tourist reached €1,440.
Italy is on track for a record-breaking summer, expecting 27 million tourists between June and September. Revenues may exceed €10 billion, driven by visitors from the UK, US, and Germany. Greece saw steady growth, while Portugal continued its recovery with 29 million non-resident tourists in 2024, up 9.3%.
Central and Eastern Europe’s Rapid Expansion
Central and Eastern European destinations recorded some of the fastest growth. Hungary rose by 14%, benefiting from stronger transport links. Latvia and Lithuania posted double-digit gains, recovering well from pandemic losses. Poland grew 7%, supported by both domestic and foreign travel.
These countries are increasingly appealing to travellers seeking affordable holidays, cultural heritage, and less-crowded destinations compared to Western Europe.
Nordic Countries Benefit from US Tourism
The Nordic region had remarkable results, especially from American visitors. Norway saw a 35% rise in overnight stays from US tourists, while Denmark gained 24% from the same market. Both countries are now well above pre-pandemic travel levels. Scenic landscapes, mild summer weather, and strong US-European flight connections helped drive this growth.
Off-Season Travel Gains Popularity
More Europeans are avoiding peak summer crowds. Searches for spring travel rose by 36%, showing a shift toward off-season tourism. Cooler weather, better prices, and destination marketing all encourage this change.
This trend also helps spread tourist numbers across the year, easing the strain on popular summer destinations and boosting local economies in quieter months.
Source Markets Show Varied Performance
US tourism to Europe stayed strong despite global tensions. The US market grew sharply in Nordic countries and in Mediterranean destinations like Croatia (+18%), Montenegro (+17%), and Greece (+16%).
China’s tourism recovery accelerated, with growth in both large and smaller destinations. Romania rose 20%, Estonia 15%, and Croatia 7%. The UK continued as a major source market for Spain, sending 6.8 million visitors in the first five months of the year.
Rising Prices Affect Choices but Not Spending
Travellers paid more in 2025. Flights to Southern Europe cost 5% more, while package holidays were up 7%. Despite this, spending per tourist is expected to grow by 13% this year. Many price-conscious travellers chose lesser-known destinations to get better value without sacrificing experience.
Overtourism Protests Challenge Summer Travel
Anti-tourism protests grew louder in July. In Barcelona, locals used water guns on tourists to make a point. In Mallorca, thousands marched to demand limits on mass tourism. The Canary Islands, expecting 18 million visitors in 2025, saw major demonstrations. Venice faced protests against luxury events and cruise ship congestion.
These events highlight the need for better management of visitor flows, infrastructure, and community engagement.
Economic and Geopolitical Pressures
Rising operating costs have pushed up travel prices. Calendar shifts affected seasonal performance, and US tariff concerns created uncertainty for transatlantic travel.
Conflicts in the Middle East disrupted flight routes, forcing airlines to avoid certain airspaces and cut services to Gulf hubs such as Dubai and Doha. This has the potential to impact long-haul travel from Asia and Oceania into Europe.
Digital Innovation and Sustainable Tourism
Countries are turning to technology to improve tourism management. Spain launched a digital platform that tracks beach occupancy, air quality, and weather in real time. Other destinations are developing “smart tourism” apps to guide visitors and ease overcrowding.
Policies now include seasonal tourist taxes, removal of illegal short-term rentals, and transport initiatives such as Switzerland’s fully hydroelectric rail system. Berlin introduced reward programs for eco-conscious tourists, offering discounts and free tours to those who choose sustainable travel options.
Outlook for the Rest of 2025 and Beyond
Europe’s tourism revenue is expected to reach US$305.96 billion this year. Package holidays remain the biggest segment, worth US$136.87 billion. Average revenue per tourist is forecast at US$649.55.
Long-term, tourism will focus on sustainability, technology integration, and diversification of destinations. The success of off-season campaigns suggests more even distribution of visitors throughout the year.
Accommodation Sector Shows Strength
Hotels accounted for 72% of tourism nights in the first quarter, with luxury properties seeing record-high revenue per room. Short-term rentals also grew, reaching 129.6 million guest nights, but cities are increasing regulations to control supply.
Most accommodation providers are confident about business prospects, with 63% expecting better results in the coming year.
Tourism’s Economic Impact
Tourism remains a major economic driver. In 2024, it contributed €484 billion to Germany’s economy, supported 1.2 million jobs in Portugal, and made up 9% of France’s GDP. Across the EU, nearly 13 million people work directly in tourism.
These numbers confirm the sector’s importance but also underline the need for policies that protect jobs while addressing environmental and social concerns.
July 2025 showed that European tourism remains resilient and adaptable. Growth in arrivals, strong spending, and the success of less-traditional destinations demonstrate the sector’s ability to evolve.
The future will require a balance between attracting visitors and protecting communities. Innovation, smart management, and sustainability will be key to keeping Europe the world’s top travel destination.
Outlook for the Rest of the Season
Looking ahead, August could offset July’s slight drop, especially with late German holidaymakers arriving. Growth from Poland, the UK, and the US is likely to continue, helping to stabilise the overall trend. However, competition from other Mediterranean destinations and shifting travel patterns mean Croatia must adapt. Targeted promotions, flexible booking options, and diversified offers will be key to maintaining momentum. With strong infrastructure and natural appeal, Croatia is well-positioned to sustain its role as a leading summer destination in Europe.
