European Tourism Lobbies Target High-Spender Border Curbs
European tourism leaders are pressing policymakers to overhaul visa caps, restore tax-free retail, and tap long-haul visitor spending.
The short answer
European travel leaders and hoteliers are urging governments to eliminate bureaucratic and fiscal barriers that discourage lucrative international travelers. While the WTTC targets Schengen visa shortfalls and outbound deficits, British hoteliers are battling the UK tourist tax.
“Europe already welcomes almost half of the world’s international travellers. 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.”
The short version
- Schengen member countries issued 40% fewer multiple-entry visas in 2025 than in 2019, cutting the multiple-entry share to 51.7%.
- Europe runs an external travel trade deficit of approximately US$45 billion once trips within the region are stripped out.
- Royal Lancaster London GM Sally Beck is leading hospitality demands for the British government to reinstate tax-free shopping.
The World Travel & Tourism Council reported that travel and tourism delivered nearly US$3 trillion to Europe's gross domestic product in 2025, representing 9.4% of the regional economy [1]. Yet hoteliers and industry associations argue that government policies actively choke off high-spending international arrivals [[1], [2]]. While the WTTC is targeting European Union border red tape, British operators are pushing Westminster over shopping taxes [[1], [2]].
| Metric | Recorded Value | Baseline / Comparison |
|---|---|---|
| Schengen Multiple-Entry Visas (2025) | 5.3 million | 40% below 2019 levels [1] |
| Multiple-Entry Share of All Visas | 51.7% | 59% in 2019 [1] |
| Intra-European Arrival Share | 74.3% | Three-quarters of arrivals [1] |
| External Travel Trade Balance | US$45 billion deficit | US$33.9 billion surplus total [1] |
| Asia-Pacific Visitor Volumes | 4.8% below 2019 | China down 43.2% [1] |
| European Travel Investment (2025) | US$259 billion | 3.6% below 2019 [1] |
Multiple-Entry Visa Contraction
According to eHotelier's coverage of the WTTC report, Schengen member states issued 5.3 million multiple-entry visas in 2025, which reflects a 40% reduction from 2019 volumes [1]. The WTTC pointed out that multiple-entry visas now account for 51.7% of all Schengen entry approvals, down from 59% prior to the pandemic [1]. To reverse this drop, the council recommends accelerating the digital Schengen visa, agreeing on airport biometric standards, and building an EU-wide trusted traveller scheme that mirrors US Global Entry [1]. The dataset does not detail individual country refusal rates or track application processing timelines across separate consular posts.
The Long-Haul Travel Deficit
Europe relies heavily on proximate travel: 74.3% of international arrivals in 2025 originated from within Europe itself [1]. As reported by eHotelier, if cross-border trips within Europe are removed, Europe's travel balance flips from an overall US$33.9 billion surplus into a deficit of approximately US$45 billion [1]. Europeans spend more traveling beyond the continent than incoming foreign long-haul travelers spend inside it [1]. While Asia-Pacific arrivals as a whole linger 4.8% below 2019 figures, China sits 43.2% below, and Japan and South Korea lag by roughly 30% [1]. The figures do not record average length of stay or isolate per-day hotel expenditures for these source markets.
The UK Tourist Tax Disadvantage
In a separate push, British hoteliers are lobbying Westminster to scrap the tourist tax and restore tax-free shopping for foreign visitors [2]. Boutique Hotel News reported that Royal Lancaster London General Manager Sally Beck is spearheading industry demands to bring back VAT refunds for international tourists [2]. Hoteliers contend that the absence of tax-free retail actively repels high-spending international guests and depresses rooms and food-and-beverage revenues across the United Kingdom, handing an advantage to continental destinations [2]. The report did not include specific revenue loss estimates or Treasury tax receipt figures.
None of the reported figures cover individual property average daily rates, domestic lodging margins, or traveler spending shifts caused by currency swings.
Reported by
This article was written from the following reporting. Follow the links for the original coverage.
- [1]WTTC Outlines 8 Key Priorities to Secure European Tourism— eHotelier
- [2]Sally Beck Urges UK Reversal on Tourist Tax— Boutique Hotel News
Frequently asked
+What is Europe's current travel trade balance with overseas markets?
Europe posts an external travel trade deficit of roughly US$45 billion once intra-regional trips are excluded. While the total travel trade shows a US$33.9 billion surplus, European tourists currently spend more money traveling abroad than foreign visitors from outside Europe spend across the region.
+How sharply have Schengen multiple-entry visas declined?
Schengen states issued 5.3 million multiple-entry visas in 2025, which is 40% below 2019 volumes. Multiple-entry visas represented 51.7% of all Schengen visas issued in 2025, down from 59% recorded in 2019.
+Which long-haul inbound markets are lagging furthest behind pre-pandemic levels?
Inbound arrivals from China remain 43.2% below 2019 levels. Inbound visits from Japan and South Korea are around 30% below pre-pandemic baselines, keeping wider Asia-Pacific arrivals down 4.8%.
+Why are UK hoteliers lobbying against the tourist tax?
Hoteliers led by Royal Lancaster London General Manager Sally Beck argue that ending tax-free shopping deters high-spending international visitors. They are lobbying Westminster to reinstate VAT-free shopping so British hotels can compete with continental European rivals.
+What travel reforms is the WTTC advocating across the European Union?
The WTTC recommends rolling out the digital Schengen visa, restoring multiple-entry visa numbers, adopting biometrics at European airports, and creating an EU trusted traveller scheme with reciprocal recognition of systems like US Global Entry.
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