The Impact of the Financial and Economic Crisis on European Tourism

As of the late winter season of 2009 it has become obvious that the Austrian tourism industry can no longer escape the effects of the slowdown in international demand. Consequent to lagging adjustments to negative income and labour market expectations, the steep decline in tourism demand is expected to be further exacerbated throughout 2009. In 2009, the effects of the international credit crunch and economic crisis and the resultant slump across all sectors of the economy will cause international demand for foreign travel in the EU 15 to drop by 4.5 percent in real terms, although the decline should slow down significantly in 1010 (–1 percent).