The first European Strategy for Sustainable Tourism, presented by the European Commission under the responsibility of the commissioner in charge, Apostolos Tzitzikostas, focuses on revising VAT rules for tourism, boosting business competitiveness and establishing a new framework for managing tourist destinations.
The strategy sets out specific initiatives with deadlines extending to 2029, focusing, among other things, on the digital transition, tackling seasonality and distributing tourist flows more effectively.
Its central aim is to shift the focus from visitor numbers to generating greater value for destinations, businesses and local communities.
The initiative’s importance is reflected in the sector’s economic contribution: it directly accounts for 4.1% of the EU’s gross value added, rising to 10.1% when indirect and induced effects are included. European tourism supports more than 20 million jobs and encompasses around 5 million businesses, 99% of them small and medium-sized enterprises.
VAT, platforms and red tape
One of the most significant initiatives concerns the revision and modernisation of the VAT rules applying to the travel and tourism sector. The Commission plans to present a proposal on the matter by the end of 2026.
Meanwhile, a European initiative to simplify administrative procedures is due to be launched in the first half of 2027, with the aim of gathering specific information on the administrative burdens facing tourism businesses and destinations.
Particular mention is made of online booking platforms, with the Commission highlighting the need for transparent commercial practices and fair conditions of competition. It also stresses that market power should not lead to unfair commercial dependence for tourism businesses, emphasising the effective and consistent enforcement of existing European rules on digital markets (Digital Markets Act) and digital services (Digital Services Act).
The Commission also plans to review classification systems for tourist accommodation, with a view to making them more comparable across member states and exploring the gradual inclusion of additional information on accessibility and environmental performance.
Short-term rentals
Part of the new strategy addresses the management of tourism activity, as 42% of overnight stays in the EU are concentrated in the three most popular months of the year.
In the second half of 2027, the Commission plans to submit a proposal for a Council recommendation on balanced tourism management, accompanied by a common European toolbox bringing together shared approaches to managing tourism activity and drawing on findings from measures relating to short-term rentals.
Work will also begin on a European model for managing tourist destinations, which could serve as a voluntary point of reference for member states. The aim is to distribute demand more effectively across regions and seasons, taking account of each destination’s capacity.
Special mention is also made, among other things, of cruises, with provision for a European dialogue on cooperation for sustainability and the management of tourist flows. In transport, the strategy highlights the need to upgrade ports and marinas and maintain connectivity for islands and remote areas.
Workforce and investment
On employment, the Commission notes that 92% of tourism SMEs have difficulty recruiting skilled staff. To address this, a European Tourism Academy is due to be established in the second half of 2027, while a study on working conditions in the sector will be published in the second half of 2028.
On funding, the strategy estimates that European support for tourism through 15 funding programmes will total around €18 billion over the 2021-27 period.
For 2028-34, the Commission highlights opportunities to make use of European funding instruments and mobilise private capital, with a focus on infrastructure, innovation and support for SMEs.
SETE’s response
The Association of Greek Tourism Enterprises (SETE) welcomed the new strategy, describing it as a milestone for Europe and an opportunity for Greece.
The association notes that the strategy includes specific initiatives and deadlines, as well as provision for private-sector participation in governance. It highlights priorities such as skills, infrastructure, competitiveness and effective destination management.
“The first European Strategy for Sustainable Tourism is a milestone in recognising tourism’s strategic role in Europe. The next important step is its implementation, with a tangible impact for businesses, tourism workers and local communities,” said SETE president Agapi Smpokou.