Published on
August 24, 2025
Tourism is a pivotal sector within the European Union’s economy, significantly contributing to both economic growth and employment.
Tourism is a pivotal sector within the European Union’s economy, significantly contributing to both economic growth and employment. Following the pandemic, visitor numbers are returning to pre-crisis levels, and tourism continues to drive substantial revenue. However, as the sector grows, it faces increasing challenges, such as overcrowding and environmental impact, which require balanced solutions to ensure sustainable development.
Tourism’s Economic Contribution to the EU
Travel and Tourism Council (WTTC). The contribution is projected to continue rising, with estimates placing the tourism sector at 2.3 trillion euros by 2035.Additionally, tourism contributes 5.1% to the EU’s total value-added output, highlighting its crucial role in driving economic activity throughout the region.
Tourism also sustains millions of jobs. As of 2022, over 12 million people were directly employed in tourism-related industries, with broader estimates indicating that the sector supports as many as 23 million jobs across the EU. Southern European countries, particularly Greece, Spain, and Croatia, rely heavily on tourism, with certain regions depending on it for up to 20% of total employment.
Spain at the Forefront of European Tourism
Spain remains the EU’s leading destination for tourists, contributing 12.3% to the country’s GDP in 2023. The country has experienced impressive growth in tourism, with international arrivals increasing by more than 10% in 2024. Spain also reported 302 million overnight stays in 2023, far outpacing other European countries such as Italy, France, and Greece. The combination of high numbers of tourists and rising visitor expenditure has solidified Spain’s place as Europe’s tourism powerhouse.
Challenges for Smaller EU Countries
Although Slovenia has launched new initiatives to boost tourism, it remains somewhat disconnected from major international tourism circuits.
Romania, likewise, has yet to break through as a top European tourist destination. Despite efforts to improve tourism infrastructure, the country remains at the bottom of the rankings in terms of foreign overnight stays, placing second-to-last in early 2025. However, experts predict that Romania’s tourism sector will see significant improvement over the next decade, especially after it adopts the euro in 2026.
Sustainability Efforts in European Tourism
As the tourism industry grows, the EU is focusing on making the sector more sustainable and resilient. The European Commission’s 2022 report outlined 27 measures aimed at achieving a green and digital transition within tourism. These initiatives focus on reducing environmental impact, improving digital services, and enhancing visitor experiences in a way that preserves local communities and resources.
Germany’s tourism sector has already voiced the need for “greener, more digital, and crisis-resilient” strategies to sustain growth. The European Agenda for Tourism 2030 is working toward these goals by prioritizing sustainable practices, digital innovation, and resilience, all while enhancing the tourism experience for visitors. In 2025, the European Commission launched a public consultation to refine strategies for a more sustainable tourism model.
Schengen Area: A Game Changer for Tourism
The Schengen Area, which includes 29 countries, has revolutionized travel within Europe by eliminating passport checks between member states. This has significantly enhanced the ease of movement, benefiting both EU residents and international visitors. Additionally, changes to visa regulations, such as easing Schengen visa rules for Turkish citizens, are expected to boost tourism in countries like Turkey and Bulgaria, which will benefit from increased cross-border flows.
The Growing Issue of Overcrowding
With the increase in tourism, overcrowding has become a major issue in many popular destinations. Cities such as Barcelona, Venice, and Palma de Mallorca have faced significant social backlash as local residents experience higher living costs, particularly in areas impacted by short-term rentals. In some locations, protests have erupted over the rising prices and overcrowded conditions, with locals calling for a reduction in visitor numbers, especially during peak seasons.
To address this, several regions are implementing measures such as tourist taxes and stricter regulations on short-term rentals. For instance, Greece introduced a tax on cruise ships to manage the influx of tourists, while Venice imposed a visitor entry fee to control crowds. These measures aim to balance the economic benefits of tourism with the need to maintain the quality of life for residents.
Innovative Approaches to Combat Overcrowding
Some countries have adopted innovative strategies to tackle overtourism while maintaining a vibrant tourism sector. In Iceland, tourism taxes are being used to fund environmental conservation efforts, ensuring that the country’s natural beauty remains intact for future generations. Croatia’s Dubrovnik has partnered with cruise lines to control the number of ships entering the city, and Austria is promoting summer activities such as hiking in its ski resorts to attract tourists year-round.
These efforts are part of a broader movement to manage tourism in a way that benefits both visitors and local communities. However, some critics argue that certain measures, such as tourism taxes, may not be effective in reducing visitor numbers, and that funds collected are not always reinvested into managing the sector responsibly.
Conclusion
Tourism remains a driving force in the EU’s economy, providing valuable revenue and employment across the continent. However, the sector must evolve to address challenges such as overcrowding, environmental impact, and social tension. The EU’s focus on sustainability, digitalization, and resilience will be key to ensuring that tourism continues to contribute positively to the economy while minimizing negative effects on local communities and the environment. With the right policies and innovations, European tourism can thrive sustainably in the years to come.
