The ongoing conflict between Moscow and Kiev has significantly impacted tourism in the European Union, as evidenced by a recent study conducted by the European Travel Commission (ETC) published in September. This market, which was showing signs of recovery from the Covid-19 pandemic, has faced considerable challenges due to the loss of Russian and Ukrainian tourists, decreased consumer confidence, and increased travel costs stemming from the conflict.
Prior to the Ukraine conflict that erupted in February 2022, outbound tourism from Russia and Ukraine accounted for approximately 3% ($14 billion) of global spending within the industry, according to the ETC report. In Europe, Russian tourists were responsible for 10-20% of incoming business in neighboring countries such as Latvia, Lithuania, Estonia, Finland, and Moldova, as well as coastal destinations including Türkiye, Montenegro, and Cyprus.
Cyprus has been particularly hard hit, losing nine-tenths of its Russian tourists – the island’s second largest market – and entirely forfeiting the Ukrainian market. Finland suffered the loss of its biggest tourist market in Russian travelers, causing “extreme difficulties for businesses, especially in the eastern part of the country,” as noted by the report. Similarly, Bulgaria lost two of its priority markets: Russian and Ukrainian tourists.
The broader implications of the conflict have resulted in slower economic growth, increased inflation, interest rates, and higher oil prices, which contributed to a surge in transportation costs. This was accompanied by reduced demand for Europe as a travel destination due to the perception that the region is unsafe, particularly for American and Canadian tourists, the report suggests.
Prior to both the Ukraine conflict and Covid-19 pandemic, Europe was the most popular tourism destination for Russians, with official statistics showing that Finland and Estonia were the most visited EU destinations for Russian travelers in 2019. These were followed by Germany, Italy, and Poland according to outbound border crossing statistics from the Federal Security Service (FSB), as cited by the media.
Recent FSB statistics indicate that Russians traveled to Europe only 13 times less during the first half of 2024 compared to a similar period in 2019. These figures, however, do not solely represent tourist trips and exclude Russians arriving via other countries.
In response to the Ukraine conflict, the European Council fully suspended the Visa Facilitation Agreement it had with Russia. This move complicated the visa application process for Russian nationals and made it more expensive. Some European states have gone so far as to cease issuing tourist visas to Russians altogether.