At the start of the peak summer season, travel in Europe is holding the course established early in the year. Most of our destinations are reporting continued visitor growth in the first half of 2012.
It is evident that travel within Europe is supporting much of this growth. European air carriers report continued strength on European routes and even stronger recent performance on Asian routes. In terms of visitor arrivals, Russia continues to be the strongest performing source market thus far and Japan is continuing its resurgence. Routes servicing North
America have underperformed, however.
Occupancy rates of European hotels have trended toward flat in total. Yet, hotels in both Eastern and Northern Europe have experienced the largest share of gains in occupancy through May. While occupancy rates in Western Europe are essentially flat, hotel occupancy has fallen in Southern Europe.
And reason for caution remains. Hotel performance data continues to present signs of mixed performance with 16 out of 26 European countries experiencing a decline through May of 2012.
Austerity continues to be a drag on the global economy, prompting central banks to loosen monetary policy in order to provide liquidity to the financial sector. These actions come as leading indicators of economic activity in many economies indicate slowing and the US recovery becomes increasingly uncertain.
In the face of these headwinds, Tourism Economics forecasts visits to all of Europe are expected to decline nearly 1% in 2012 with only moderate growth of 0.9% expected for 2013.
This peak travel season will largely indicate the resilience of our industry for the year. We trust you will find the analysis in this report helpful as you track your own destination’s performance and seek to anticipate future trends.
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