Europe's Travel & Tourism sector will grow 3.1% in 2026 — nearly three times the 1.1% pace forecast for the wider European economy — if governments act on eight policy priorities laid out by the World Travel & Tourism Council on Tuesday at its 26th Global Summit in Valletta.

The council's report, "Travel & Tourism in Europe: A Deep Dive Into Growth, Outlook and Policy," quantifies a sector that contributed $3 trillion to European GDP in 2025, or 9.4% of the regional economy, and supported 40.7 million jobs — roughly one in ten. International overnight arrivals reached 757.3 million, capturing 49.1% of the global total and generating $835 billion in visitor spending, 41% of the world figure.

Where the growth comes from

WTTC forecasts an annualized 2.2% expansion through 2036, lifting the sector to $3.8 trillion in GDP and more than 50 million jobs — 8.3 million above 2026 levels. The European Commission's first dedicated tourism strategy, expected alongside negotiations over the EU's 2028–2034 Multiannual Financial Framework, gives policymakers a rare window to lock in that growth, the report argues.

"Europe already welcomes almost half of the world's international travellers," WTTC President & CEO Gloria Guevara said in Valletta. "As global travel keeps growing, Europe is well placed to extend that leadership, and the choices governments make now will decide how much of that growth comes here."

What the eight priorities cover

Secure and seamless travel. Schengen states issued 5.3 million multiple-entry visas in 2025, 40% below 2019, with their share of all visas dropping from 59% to 51.7%. WTTC wants the digital Schengen visa accelerated and an EU-wide trusted traveller programme established.

Source-market diversification. Intra-European arrivals accounted for 74.3% of 2025 international traffic. Asia-Pacific arrivals remain 4.8% below 2019, with China down 43.2% and Japan and South Korea about 30% off. Excluding intra-regional travel, Europe swings from a $33.9 billion trade surplus into a $45 billion deficit.

Investment. Sector investment hit $259 billion in 2025, up 7.1% year-on-year but still 3.6% below 2019. Asia-Pacific invested $395 billion; North America $273 billion. WTTC wants the sector named a strategic ecosystem in the next MFF.

Sustainability and stewardship. The sector accounted for 6.3% of European greenhouse gas emissions in 2024, with emissions intensity down 14.8% since 2019. Mediterranean destinations — which captured 52.2% of Europe's international visitor spending — face acute heat and water risk.

Talent. Workers under 30 hold 13.1% of direct tourism jobs versus 8.3% across the wider economy, but Germany's workforce is projected to fall 26% short of demand by 2035, and Greece's 27%.

AI adoption and connectivity. The report calls for grants, training and shared digital tools for SMEs, alongside interoperable booking and ticketing across air, rail and maritime.

What does the EU policy window change?

The report carries no regulatory weight. Its value is timing: national tourism strategies are landing across Europe, the European Parliament adopted an April 2026 resolution treating tourism as a strategic economic sector, and EU Competitiveness Council conclusions followed in May 2026. Together they form the scaffolding for the Commission's first tourism strategy.

Country-level stakes

Germany anchors the region at $566 billion in Travel & Tourism GDP, followed by the UK ($380 billion), France ($312 billion) and Spain ($291 billion). Spain leads on inbound spending at $130 billion, with per-visitor spend of $796 — 1.7 times the European average.

Malta, the summit host, outperformed its neighbours: the sector contributed $4.6 billion to GDP in 2025, up 16.8% against 4% for the wider economy, and supported one in five jobs.

Whether the eight priorities translate into binding policy will shape whether Europe holds its 49% share of global arrivals as Asia-Pacific rebuilds capacity over the next decade.