Southern Europe’s Hospitality Sector Flourishes despite Overtourism Concerns
- Southern European hotel market sees significant growth in 2024, with Paris and Spain witnessing a surge in demand due to the Paris Olympics and a boost in international tourism respectively.
- Overtourism emerges as a significant concern in Southern Europe, prompting various responses, from resident protests to government-imposed tourism taxes and visitor caps.
The Southern European hospitality sector experienced a robust performance in 2024, with regional RevPAR (Revenue per Available Room) increasing by 9.8% year over year due to international leisure travelers’ attraction to the region’s beaches and historic cities. This surge in demand resulted in an 8% increase in the average daily rate (ADR) to EUR175, marking the highest regional rate in Europe for the year.
The hosting of the 2024 Paris Olympics significantly boosted the French hospitality market. Hotels in Paris maintained over 80% occupancy during the Games period, peaking at 90.5%. The ADR in the French capital averaged an impressive EUR781 during the event.
Spain also enjoyed a remarkable year of double-digit growth. Boosted by an influx of international tourism, the country’s RevPAR surged 11.5% ahead of 2023. Major cities like Madrid and Barcelona and coastal destinations such as the Balearic and Canary Islands all observed significant growth.
Despite this robust performance, Southern Europe grappled with the problem of overtourism, which threatened popular destinations and local communities. This led to various responses, from resident-led protests in Spain to government-imposed measures like tourism taxes and visitor caps in Italy.
Despite these measures, occupancy and ADR in popular destinations like Athens, Rome, Venice, and the Spanish islands continued to rise in 2024. Looking forward, Paris anticipates a year of normalization post-Olympics, Italy aims to attract more long-haul travelers, and Spain will focus on balancing local needs with traveler demand.
Categories: Trends