Europe Is Losing Tourists: Declines in Iceland, Germany, Sweden, and Switzerland

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Europe’s tourism market is undergoing a reassessment of long-established destinations. Countries that for years ranked among the most visited are now reporting fewer trips and weaker tourism revenues. Iceland, Germany, Sweden, Switzerland, Belgium, and Austria are at the center of these shifts, reports Travel and Tour World.

Iceland: A High-Cost Destination Losing Mass Demand

Iceland is posting one of the sharpest declines in tourism flows among European destinations. The total number of foreign visitors fell by about 11% compared with the previous year. At the same time, the number of flights and hotel bookings is decreasing, including during winter periods that are traditionally among the most in demand.

The key factor remains the rising cost of travel. A stronger Icelandic króna has pushed up the price of accommodation, dining, and excursions, weakening the country’s price appeal even against other Nordic destinations. Another pressure point has been weaker international promotion of Iceland as a tourism brand, which increasingly pushes the destination down the list of priority winter маршрутов.

Germany: Major Cities Give Way to Alternative Routes

Germany is recording a decline in international demand first and foremost in its largest cities, including Berlin and Munich. The source links this trend to a combination of high travel costs and a slower recovery of city tourism after the pandemic.

Demand patterns are also changing. Travelers are increasingly avoiding overcrowded мегаполисы, opting for lower-density and more relaxed types of trips. Against the backdrop of rising prices and economic uncertainty, Germany is ceding part of demand to more affordable destinations, including those beyond Central Europe.

Sweden and Switzerland: A Price Barrier

Sweden is facing a decline in tourism revenues as demand softens from key markets such as the United States and the United Kingdom. Higher accommodation and service costs, together with stronger competition from warmer and more affordable destinations, are reducing the country’s appeal, especially in the winter season.

A similar situation is unfolding in Switzerland. Despite its strong image as a premium alpine destination, high prices for accommodation, food, and leisure limit the inflow of new visitors. With economic growth slowing, tourists are increasingly choosing alternative resorts with more moderate pricing.

Belgium and Austria: Pressure on Revenues and Seasonal Demand

In Belgium, the number of visits remains relatively stable in 2025, but tourism revenues are declining. Travel and Tour World notes that visitors are spending less, focusing on shorter trips and budget-friendly formats, which directly affects the sector’s financial performance.

Austria, traditionally oriented toward winter tourism, is facing stagnation and a decline in overnight stays. Rising transport and hotel costs are intensifying competition from lesser-known but more affordable ski destinations, gradually eroding Austria’s position in the winter travel market.

The weakening in tourism activity is not limited to these countries. Similar trends are noted in France, Spain, Ireland, and Croatia. Key drivers include a higher cost of living, climate risks, overcrowding in popular destinations, and a shift in traveler preferences toward less crowded and more affordable locations.

Conclusion: Demand Is Being Reallocated
Eurostat reports that in 2024 the total number of nights spent in tourist accommodation across the EU exceeded 3 billion, a historical high. This increase confirmed resilient demand even amid inflationary pressure and rising travel costs. In the first half of 2025, the positive trend continued, with a reported increase of 2.3%. At the same time, some Northern and Central European countries saw slower growth or a contraction in the international segment, pointing to increasing differentiation within the European market.

The European Travel Commission (ETC) notes that travel demand in Europe generally held up in 2025, but was distributed highly unevenly. More expensive and overcrowded destinations faced weakening interest, while attention shifted toward more affordable and less saturated markets, as well as toward shorter and more flexible trips within the region. The World Travel and Tourism Council estimates that inbound visitor spending in Europe in 2025 rose by around 11%, indicating continued high purchasing power even as trip volumes declined in certain countries and segments.

Analysts at International Investment note that the combined data point to sustained interest in Europe as a travel destination. At the same time, flows are being redistributed under the influence of rising prices, climate factors, overcrowding in certain locations, and shifting consumer preferences. For countries experiencing declines, this implies a need to adapt products and pricing, while for the market as a whole, 2026 marks a transition from extensive growth to a more selective and segmented model of development.

In some countries, the situation appears markedly more favorable. For example, in Georgia, tourism demand continues to strengthen. In Tbilisi, passenger traffic increased by 13% year on year and by 45% compared with the pre-crisis level. In Batumi, growth reached 30% and 96%, respectively, a result described by TAV Georgia as unprecedented.