European Union Short-Term Tourism Trends

Overview

This release of the European Union Short-Term Tourism Trends presents the preliminary data for internationaltourist arrivals to the European Union (EU-28) in the firsthalf of 2017.

It also provides a glance of internationaltourism expenditure and international tourism receipts forthe same period.According to data available through June 2017, 14 out ofthe 28 countries of the European Union have recordeddouble-digit growth in arrivals. It is estimated that, overall,EU-28 destinations received 231 million internationaltourist arrivals between January and June 2017, 17million more than the 214 million in the same period of2016. This corresponds to a remarkable 8% increasecompared to the same period last year, making thecurrent January-June period the strongest half-year since2010. Results are underpinned by robust growth in manydestinations and a recovery in those that suffereddeclines in previous years.Growth in international tourism receipts reported bythe top 5 EU-28 destinations was fairly strong. Spainrecorded the highest growth (+12%), followed by theUnited Kingdom (+11%) and France (+8%). Germany(+4%) and Italy (+3%) also reported good results.Growth in international tourism expenditure was alsorobust in the 4 top EU-28 source markets. Germany (theworld’s third largest market) recorded a 3% increasethrough June. The United Kingdom (+8%) France grew11% in the first half of 2017, while Italy recorded 5%growth.EU-28 tourism at a glanceInbound tourism in thefirst half of 2017231 millioninternational tourist arrivals +8%more arrivals+17 millionNew arrivals Contents Overview 1International Tourist Arrivals 2017 2

- tables international arrivals monthly/quarterly data 4International Tourism Receipts 2017 8

- tables receipts monthly/quarterly data 9

International Tourism Expenditure 2017 11

- tables expenditure monthly/quarterly data 12

European Union

Short-Term Tourism Trends

Volume 1• 2017- 4

European Union Short-Term Tourism Trends

2 Volume 1• 2017-4  International Tourism Arrivals through June 2017Based upon available data with most countries having reported data on inboundtourism for the first six months of 2017, the following section presents preliminaryresults for international tourist arrivals to EU-28 and Extra-EU destinations in 2017.International tourism - strongest half-year results since 2010Destinations worldwide received an estimated 598 million international tourists(overnight visitors) in the first six months of 2017, some 36 million more than in thesame months of 2016. At 6%, growth hasoutperformed the sustained trend of 4-5%annual growth for international tourist arrivals recorded since 2010. This representsthe strongest half-year in seven years. Results are underpinned by robust growth in many destinations and a continuation of the recovery in others that suffered declines in previous years. By UNWTO region, growth was strongest in the Middle East  (+9%), Europe (+8%) and Africa (+8%), followed by Asia and the Pacific (+6%) and the Americas (+3%). The January-June period usually accounts for 46% of total international arrivals of  the year, with the second half longer by three days and including the Northern  Hemisphere high season months of July and August.  Southern and Mediterranean Europe leads growth with 12% more arrivals  International arrivals to Europe, the world’s most visited region, grew 8% during the first six months of 2017, an extraordinary pace of growth considering the maturity ofmost destinations and the large base volume. This growth follows a modest 2% increase in 2016 and reflects a clear rebound in destinations that suffered decreases in previous years, such as Turkey, France and Belgium, combined with a particularly strong performance of destinations in Southern and Mediterranean Europe (+12%). Northern Europe (+8%) and Western Europe (+6%) also recorded solid results, while Central and Eastern Europe (+3%) was more mixed. Extraordinary pace of growth in EU-28 Out of the 28 countries of the European Union, 14 have recorded double-digit growth in arrivals during the first half of 2017, leading to an overall robust 8% increase (+5% in 2016). Demand has been largely driven by intra-regional source  markets1 , which are benefiting from the ongoing recovery of EU-28’s economy. It is estimated that the upward trend of GDP growth that begun in 2013 is consolidating.  Seasonally adjusted GDP rose by 2.1% in the EU-28 in the first quarter of 2017, after a 2% growth in the previous quarter.2 Also, the ongoing recovery of the Russian Federation has enhanced intra-regional travel. Long-haul source markets, particularly the United States and China, have also contributed to the robust results.  According to reported data, EU-28 countries welcomed 231 million international tourist arrivals (overnight visitors) in the first half of the year, 17 million more than in the same period of 2016.

 The eight European Union destinations in Southern and Mediterranean Europe led growth with an 11% increase in arrivals over the same period in 2016, supported by solid performance in most destinations. Portugal (+13%) and the subregion’s top destination Spain (+11%) continue to boast double-digit growth after similar results in 2016, fuelled by particularly strong long-haul source markets. The recent terrorist attack in Barcelona is not yet reflected in

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the data, but is expected to have a short-lived and localised impact over tourist arrivals to Spain. Italy, the subregion’s second largest destination, and Greece both reported 7% growth in arrivals this period. Balkan destinations Croatia (+25%) and Slovenia (+19%) also reported double digit growth, as did island destinations Malta (+19%) and Cyprus (+15%).

 International arrivals to the five EU-28 destinations in Northern Europe grew by a robust 8% increase. Arrivals to Finland (+15%) showed double-digit growth, encouraged by an upsurge in long-haul travel, especially from China. The United Kingdom has reported a 9% increase, helped by the weaker British pound, and despite terrorist attacks in London and Manchester. Arrivals to Sweden (+8%) remain solid and show resilience after April’s terror attack in Stockholm. Denmark (+7%) also recorded robust results. Ireland (+3%) reported more modest results.

 The nine European Union destinations in Central and Eastern Europe recorded a 6% growth in arrivals through June. The Czech Republic and Latvia (both +13%), Romania (+12%) and Bulgaria (+10%) led growth within the group, followed by Slovakia (+9%), Lithuania (+6%), Poland and Estonia (both +5%). These results were offset by a decrease in arrivals to Hungary (-2%).

 Arrivals to the group of six European Union destinations in Western Europe (+6%) have rebounded in the first half of 2017 following last year’s flat results (0%). Growth has been driven by the recovery of the world’s top destination France as well as Belgium (both +10%) from last year’s drop in arrivals in the aftermath of several terrorist attacks. The Netherlands also reported a robust 10% growth following sound results in 2016, while arrivals in both Germany and Austria grew by 5%. Extra-EU destinations report solid growth in arrivals after last year’s decline  International arrivals to the 26 destinations outside the European Union (ExtraEU) grew 6% in the first months of 2017 after last year’s 8% decline, with most destinations reporting robust results. Growth has been fuelled by the recovery of Turkey (+24%) following last year’s decline.

 Growth in this group was led by the nine Extra-EU destinations in Southern and Mediterranean Europe. International tourist arrivals grew by anextraordinary 15% in the first half of 2017, following a 20% decrease in 2016.  Growth has been fuelled by the rebound of this group’s largest destination Turkey (+24%) after a steep 29% decline in arrivals in 2016, thanks to increased security after last year’s recurrent terrorist attacks and an upsurge in demand from the Russian Federation. Israel also reported 24% more arrivals after a more modest increase in 2016. Balkan destinations Montenegro (+20%), Serbia (+19%), Bosnia & Herzegovina (+16%) and FYR Macedonia (+13%) all reported double-digit growth.

 The five Extra-EU destinations in Northern and Western Europe have reported a robust 6% growth in arrivals. Switzerland (+7%), the largest destination in this group has reported sound results following last year’s robust growth in arrivals. Smaller destination Iceland (+22%) continues to benefit from the ongoing capacity and promotion efforts and looks forward to its eighth year of double-digit growth. Meanwhile, arrivals to Norway (+1%) have grown at a modest rate but managed to recover from a slight decline during the first quarter of 2017.

 Arrivals to the 12 Extra-EU destinations in Central and Eastern Europ declined 1% during the first months of 2017. Double-digit growth in several

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countries, such as Armenia (+24%), Kazakhstan (+21%), Moldova (+18%) and  Georgia (+17%) was offset by an 8% decrease in arrivals to the Russian  Federation (-9% in 2016), the subregion’s largest destination. Ukraine has not  reported results yet.