Pent-up demand promises record tourist season for southern Europe

After three years of pandemic travel restrictions and rocketing energy costs, tourism is back with a vengeance to boost the economies of southern Europe as sun-seekers make up for lost time. Early bookings suggest Italy, Spain, Greece and Portugal could receive record tourism revenues this year, helping replenish state coffers depleted by rising debt interest payments and the cost of living crisis. What's more, there appears to be growing demand for the luxury end of the spectrum. "Today in Italy, we have this boom in terms of tourism that is unbelievable," Carlo Messina, CEO of Italy's biggest bank Intesa SanPaolo told investment analysts in a call. "It is impossible to find a place in a 5-star hotel if you want to make a vacation." Tourism is vital to southern Europe's economies. The travel industry was worth E100b ($110.08b) or 6.2% of Italian output in 2019 before the COVID-19 pandemic brought the sector into its knees. Add the wider income generated by tourist-related business and the figure more than doubles to 13%. In Greece, tourism accounts for no less than one-fifth of gross domestic product. The number of foreign tourists visiting Italy was up 70.5% in the first two months of the year compared to the same period in 2022, according to the national statistics agency. It added that if the trend continues, Italy could match or surpass pre-pandemic levels. In April, Greek Tourism Minister Vassilis Kikilias said summer bookings already pointed to a new record.<br/>