TRENDS & PROSPECTS EUROPEAN TOURISM IN 2017: Quarterly Report (Q1/2017) A quarterly insights report produced for the Market Intelligence Groupof theEuropean Travel Commission (ETC)byTourism Economics (an Oxford Economics Company) European Tourism in 2017: Trends & Prospects (Q1/2017) Brussels, April 2017ETC Market Intelligence Report Copyright © 2017 European Travel Commission European Tourism in 2017: Trends & Prospects (Q1/2017) All rights reserved. The contents of this report may be quoted, provided the source is given accuratelyand clearly. Distribution or reproduction in full is permitted for own or internal use only. While we The designations employed and the presentation of material in this publication do not imply the Data sources: This report includes data from the TourMIS database (http://www.tourmis.info), STRGlobal, IATA, AEA and UNWTO. Economic analysis and forecasts are provided by Tourism Economics and are for interpretation by Published and printed by the European Travel CommissionRue du Marché aux Herbes, 61, 1000 Brussels, BelgiumWebsite:www.etc-corporate.orgEmail:info@visiteurope.com ISSN No: 2034-9297 This report was compiled and edited by:Tourism Economics (an Oxford Economics Company) Cover:Aerial view, Riga city center, LatviaImage ID:187465343Copyright:Dmitry Rukhlenko TABLE OF CONTENTS Foreword .............................................................................................................. 51. Tourism Performance Summary 2017 ............................................................. 92. Tourism Performance Summary 2016 ........................................................... 113.Global Tourism Forecast Summary............................................................... 144. Recent Industry Performance ........................................................................ 154.1Air Transport ........................................................................................... 154.2 Accommodation...................................................................................... 195. Special Feature .............................................................................................. 216. Key Source Market Performance ................................................................... 256.1 Key Intra-European Markets................................................................... 256.2 Non-European Markets........................................................................... 297. Origin Market Share Analysis......................................................................... 327.1 United States........................................................................................... 337.2 Canada.................................................................................................... 347.3 Mexico..................................................................................................... 357.4 Argentina................................................................................................. 367.5 Brazil ....................................................................................................... 377.6 India ........................................................................................................ 38 FOREWORD STRONG START INTO 2017 REFLECTS A VIBRANT SECTOR European tourism demand remains on a positive path despite some volatility inrecent years. Following the modest 2% increase in international tourist arrivalsin 2016, the outlook for this year remains upbeat, between +2% and +3%, Year-to-date results indicate a positive start to the year. The majority ofreporting destinations showed robust growth over this period reflecting thepositive demand from major intra-regional and long-haul source markets. Thesolid performance in the sector is sustained by strong promotional efforts to WIDESPREAD GROWTH ACROSS MOST DESTINATIONS Almost one in two reporting destinations saw double digit-increases in touristarrivals during the first months of the year. Iceland (+54%) leads growthbenefitting from the ongoing surge in air capacity on transatlantic routes whileboth Portugal (+25%) and Malta (+23%) proved their success in battlingseasonality. Off-the-beaten-track destinations such as Bulgaria (+19%), Finland(+18%), and Estonia (+13%) also enjoyed rapid growth, benefitting from being Early 2017 data for the airline industry saw a continuation of the 2016 growthtrend aided by reductions in fuel costs that are keeping down fares. The firsttwo months of 2017, Revenue passenger kilometre (RPK) surged by 7.3%.Encouraging economic conditions in the US continue to drive travel from theAmericas to Europe while Asian travel to the region remains cautious due to APPETITE FOR EUROPEAN TOURISM REMAINS AMID UNCERTAINTIES Despite the ongoing economic recovery in the Eurozone, we should expectsome headwinds arising from the impact on tourism demand due to safetyconcerns. This is especi