Europe has long been a beacon for global tourism, drawing visitors from all corners of the globe with its rich history and natural beauty.
Hotel demand in Europe is not slowing down and continues to present substantial growth opportunities for hotel developers. According to Lodging Econometrics, 326 hotels opened in Europe so far this year, with a forecast for new openings rising to another 367 new hotels in 2025. With tourism reflecting 10% of the European Union’s gross domestic product, it is no surprise that it is mutually beneficial for local governments, businesses and hotel owners.
Record-breaking numbers
European cities continue to see increased demand, and record-breaking visitor numbers. Both Spain and Portugal saw the highest number of tourist visitors ever this year, with Portugal specifically reaching 63% of 2023's total tourist visitors already in June, building on momentum it has seen post-pandemic. This seems to be driven by more international visitors, with the ETOA seeing 12% year-over-year growth of international visitors to Europe, fueled by the Americas, Middle East and Africa and Asia Pacific. And, it’s not all foreign visitors, our customer survey insights reveal that 55% of EasyHotel guests are domestic travelers, reinforcing the importance of hotels in supporting home-based visitors.
Unfortunately, such popularity has brought with it challenges, with tensions rising between locals and tourists in some markets. Traditional tourist destinations such as Venice and Amsterdam face difficulties from overcrowding, and local governments are implementing measures to curb the number of visitors. These restrictions no doubt have an impact and provide other cities with opportunities to further develop their visitor economies from those more established tourist hot spots. For hotel developers, this shift presents an exciting opportunity to expand into these burgeoning markets. At EasyHotel, we are seeing over 800 development opportunities a year across Europe, showing appetite is still there to expand.
Airbnb restrictions and the return of hotel demand
As mentioned, some communities are struggling to manage the increase in tourists, and this has once again put the spotlight on hotels as the best accommodation option to boost both local and national economies. Barcelona, Paris, and Amsterdam have recognized this and are tightening regulations around short-term rentals, with some even imposing outright bans on platforms such as Airbnb. As a result, tourists are rediscovering the availability of hotels, where they can enjoy the consistency, security and customer service that short-term rentals often lack. As local governments impose restrictions to curb the negative impacts of overtourism, budget hotels stand to benefit from increased demand for regulated, licensed accommodations.
Furthermore, for local governments, hotel developments offer rejuvenation and redevelopment of an area. Take our upcoming Madrid San Blas development for example, where we worked with a local partner to identify to find and then redevelop an old office building. Similar initiatives across Europe have allowed cities to convert outdated office buildings into modern hotels, providing much-needed rooms while regenerating local areas. Not only that, but this will transform buildings that were previously used only 9-5 Monday to Friday to open 24/7, encouraging guests to spend in local businesses and use public transport. We are strong believers in encouraging guests to go and explore the local area, curating their own experience and trip for an authentic experience.
The impact of major events
Major international events such as football championships, music festivals and concerts by global artists continue to have a significant impact on tourism numbers across Europe. While travel demand has always existed, I don’t think we have seen it at these levels before. Expedia Group did a survey toward the end of last year for its “Unpacked ’24” travel trends report and predicted that music tours are not only driving ticket sales but also tourism. Based on the company’s first-party travel data, plus a global consumer survey of 20,000 travelers, the survey revealed that nearly 70% of survey respondents say they are more likely to travel to a concert outside their own town, with over 40% saying they’d travel for a concert as an excuse to visit a new place.
It's no surprise then that events like these create short-term boosts and ensure sustained visitor growth post-event, with cities that host large music festivals or concerts seeing a surge in demand for accommodation. Taylor Swift’s recent stint of eight shows in London saw attendance of 700,000 people. This trend highlights a timely opportunity for cities and regions to capitalize on immediate tourism boosts, with hotels playing a crucial role in absorbing the influx of visitors.
Unsurprisingly, budget hotels can do well here, particularly with ticket prices for music events rising 23% from last year and 19% since the pandemic. A budget room balances out this big spend, offering a clean space and good night’s sleep.
Europe’s appeal as a tourism destination remains as strong as ever, with cultural richness, diverse landscapes, and dynamic cities drawing visitors year-round. Despite the evolving landscape of the hospitality industry, the continent continues to offer unparalleled opportunities for growth and development.
Karim Malak is CEO of European hotel brand EasyHotel.
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