Tourism in Europe needs a funding increase to stem its declining share of world tourism, industry leaders said in London last week.

Europe had a record 563.8 million international tourist arrivals last year, with tourism receipts totalling €368.5 billion, the European Travel Commission (ETC) reported.

But the ETC said European destinations were expected to grow by only 2.1 per year a year on average in the coming years – 0.3 per cent slower than previously, while worldwide international arrivals will grow much faster – by 3.5 per cent.

ETC chief executive Eduardo Santander told World Travel Market in London: “It is essential to increase funds to promote Europe as a unique destination, especially in third country markets where there is growing demand.

“If not, Europe’s share of international tourism will decline even more rapidly.”

It is essential to increase funds to promote Europe, especially in third country markets where there is growing demand

Tom Jenkins, chief executive of European tourism association ETOA, said the current highly complex regulatory framework, separate visa policies, air passenger duty and a lack of a clear brand image were still creating hassle and expense, and preventing some people from visiting.

“These are priority areas that need to be addressed urgently by all the relevant authorities,” he said.

Jenkins also presented some “alarming home truths”, such as the loss of attention on the US as an origin market, considering that outbound tourism from the US still dwarfs that of emerging markets by an order of magnitude, and the need for a surge in inbound tourism to reverse poor export performance in some European countries.

Pedro Ortun, the EC’s tourism director, said tourism could be a powerful tool to fight against the short and long-term structural challenges that Europe has recently faced, such as ageing populations, the euro crisis and growing youth unemployment.