A report from the World Travel & Tourism Council (WTTC) warns that outdated visa procedures, investment shortfalls, labor shortages, and climate challenges could hinder Europe from maximizing its potential in the global tourism market over the next decade.
Released during the WTTC’s 26th Global Summit in Valletta, Malta, the report titled Travel & Tourism in Europe: A Deep Dive Into Growth, Outlook and Policy outlines eight strategic priorities that European governments and EU institutions should adopt to bolster the tourism sector through 2036.
In 2025, the travel and tourism sector contributed nearly $3 trillion to Europe’s economy, constituting 9.4% of regional GDP and supporting around 40.7 million jobs, which is roughly one in ten positions. The sector is anticipated to grow by 3.1% in 2026, significantly outpacing the 1.1% growth expected for the wider European economy. However, WTTC emphasizes that governments need to address structural weaknesses to take advantage of increasing global demand.
“Europe already welcomes almost half of the world’s international travelers,” stated Gloria Guevara, WTTC president and CEO. She urged policymakers to expedite digital visa processes, broaden international source markets, enhance investments, and cultivate a skilled workforce.
Eight priorities for enhancing tourism competitiveness
One of the WTTC’s key recommendations is to streamline travel. In 2025, Schengen countries issued 5.3 million multiple-entry visas, a 40% decrease from 2019. The organization advocates for faster digital visa processing, increased availability of multiple-entry visas, and an EU-wide trusted-traveler program that recognizes initiatives like the U.S. Global Entry program.
Additionally, the report highlights the necessity for Europe to diversify its visitor base, noting that travelers from within Europe comprised 74.3% of international arrivals in 2025. Particularly concerning are the 4.8% fewer arrivals from the Asia-Pacific region compared to 2019, with Chinese visitors still 43.2% below pre-pandemic levels. Stronger international marketing collaborations and easier visa access are recommended to attract long-haul tourists.
Investment in the sector is another concern, as European travel and tourism investment hit $259 billion in 2025—a 7.1% increase year-on-year but still 3.6% below 2019 levels. WTTC calls for tourism to be classified as a strategic economic sector in the EU’s 2028–2034 budget, advocating for enhanced access to investment opportunities and financial support for small businesses.
sustainability and effective destination management are also crucial issues. Tourism contributed 6.3% to Europe’s greenhouse gas emissions in 2024, despite a 14.8% reduction in emissions intensity since 2019. Mediterranean areas, which receive 52.2% of Europe’s international visitor spending, face increasing challenges from extreme heat and water shortages. The report calls for improved climate adaptation, better water and waste management, nature preservation, and more rapid adoption of sustainable fuels.
Projection estimates indicate that international overnight arrivals in Europe could grow from 757.3 million in 2025 to 1.14 billion by 2036. Germany stands as the largest tourism economy in Europe, contributing $566 billion, followed by the UK at $380 billion, France at $312 billion, and Spain at $291 billion. By 2036, the GDP contribution from Europe’s travel and tourism sector is expected to reach $3.8 trillion, growing at an annualized rate of 2.2%.
WTTC emphasizes the importance of moving beyond pure visitor numbers, advocating for a focus on economic value and equitable tourist distribution across regions and seasons. Additionally, the organization underlines the urgency of addressing workforce challenges, as projected labor shortages could leave Germany and Greece 26% and 27% below tourism workforce demand, respectively, by 2035.
The report suggests solutions including apprenticeships, skills recognition, and expanded mobility opportunities for young people. By 2036, total employment in the sector is expected to exceed 50 million jobs, representing an increase of 8.3 million compared to 2026.
Finally, WTTC highlights the need for greater adoption of artificial intelligence, especially among small and mid-sized businesses, and improved connectivity through air, rail, road, and maritime networks. Developing integrated ticketing systems, accessible booking platforms, and better connections to rural areas could bolster regional economies and alleviate the burden on heavily trafficked tourist destinations.
With the European Commission working on its first dedicated tourism strategy and negotiations ongoing regarding the next EU long-term budget, WTTC asserts that this is a crucial moment for policymakers to prioritize tourism in European competitiveness.
