Sovereign Europe: Tourism is recovering, but risks remain for the most dependent sovereigns

...A gradual but sustained recovery in European tourism over the next few years will support economic growth and fiscal consolidation among most of the region's most tourism- dependent countries, who have been worst hit by the pandemic. Nevertheless, new variants and vaccine hesitancy in some countries increase the risk of renewed restrictions that could disrupt the sector's recovery and lead to a further increase in already high debt levels. + Successful vaccine roll-out and EU travel pass set the stage for a steady recovery in European tourism. Data from the crucial summer months of July and August this year point to a significant rebound in nights spent year-on-year, particularly among non-resident tourists. Because many of the factors that underpinned this growth were structural ¡ high vaccination levels in Europe and in key source markets, the introduction of the region's "vaccine passport" and the dominance of short-haul intra-European tourism ¡ we expect a gradual but steady return...

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