Tourism accounts for 10 per cent of Europe’s GDP and provides a livelihood for 25 million people. However, European tourism companies are under increasing pressure. EU regulations place an unfair burden on them compared to competitors from the US and Asia. A lack of infrastructure is hindering the green transition, while excessive bureaucracy is tying up investment funds. TUI highlights areas where changes are long overdue.

Distortion of competition through unequal regulation

As a package tour operator, TUI provides comprehensive consumer protections under EU legislation, such as insolvency protection, support and repatriations during crises, and free cancellations in case of force majeure. Online platforms, particularly those operating from the US, are not subject to these requirements, even though they offer similar travel products. The same should apply to them as to short-term apartment rentals: anyone offering travel services commercially must be subject to the same tax and regulatory obligations as hotels and tour operators.

Tourism as a growth driver

Tourism in the EU has the potential to grow significantly faster than the economy as a whole. The prerequisite is the right framework conditions. Forecast average annual growth rate 2025–2035:

Visa hurdles hinder growth

Europe wants to become an attractive destination for travellers from all over the world, which is a worthwhile endeavour. However, lengthy bureaucracy is getting in the way: travellers from high-growth source markets such as China or India have to allow up to six weeks for their visas to be processed before their trip. In contrast, the United Arab Emirates, Thailand and Türkiye issue visas within days. This results in lost bookings and reduced value creation. Therefore, shorter processing times are also a matter of competition policy.

Aviation under one-sided cost pressure

Massive distortions of competition also prevail in air transport. For instance, the EU’s mandatory blending requirement for sustainable aviation fuels (SAF) often places an additional burden on long-haul flights. Consider a flight from Amsterdam to Cancún, Mexico: while TUI must meet the costly SAF quota for the entire journey, non-European airlines with stopovers at hubs such as Istanbul or Dubai are only required to do so for the first leg. Furthermore, SAF is available in Amsterdam, but almost entirely absent in Palma de Mallorca or Heraklion. This makes fleet-wide decarbonisation planning virtually impossible. The EU must coordinate SAF obligations internationally and invest ETS revenues specifically in ramping up the market.

Expanding infrastructure

Sustainable energy is also set to transform the cruise industry. TUI Cruises has adapted to this, equipping all its cruise ships with green shore power, for example. But the problem is that most Mediterranean ports lack connections to green electricity, so expansion is urgently needed. Also electrification of TUI’s ground transport in destinations is facing hurdles. In many destinations there is not sufficient green electricity available, grids are not adjusted and there is a lack of fast-chargers for heavy-duty transport.