Malta Joins Italy, Portugal, Greece, Croatia, Spain, and Iceland in a New Tourism Boom Gone Wild in Europe as Airfares Hit Unbelievable Peaks

By: Rana Pratap

Malta now joins with Italy, Portugal, Greece, Croatia, Spain, and Iceland who, like her, are part of Europe’s new wild tourism flare as demand soars, airline capacity remains low, fuel is more expensive, and new climate regulations are in place. This drastically increases ticket prices. 2025 Q2 data showed Malta, Italy, Portugal, Greece, Croatia, and Spain witnessing record tourism which in-turn, filled up airports, hotels, and resorts. This resulted in needs far exceeding available supply. Moreso, as airline ticket prices continued to increase, tourists remained undeterred, driving European tourism to unprecedented heights.

Malta, Italy, and Portugal now serve as a focal point amidst a growth wave created by new flying routes, increased travel demand, and contrained airline servicing patterns. Greece, Croatia and Spain are also a part of this growth which showcases how Europe summer destination keeps captivating travelers. Iceland rounds off this group with proof that northern landscapes can complement Mediterranean beaches. Now, Malta, Italy and others face the common issue of joining demand with supply due to rising prices.

Airfares soared to astonishing heights in Q2 2025 as a result of increased demand and underlying economic factors. Airlines increased tickets prices as seats became more and more difficult to book. The same story appears to be true for airports that are already operating at full capacity. This unprecedented boom in tourism is observed in Malta, Italy, Portugal, Greece, Croatia, Spain, and Iceland. While these countries continue to enjoy rapid economic growth, they also face rising inflation and sustainability challenges. The more interesting question is how long will these travellers continue to sustain their demand for European tourism, as Malta aggressively pursues this pattern alongside Italy, Portugal, Greece, Croatia, Spain and Iceland.

Malta Faces a New Tourism Wave with Rising Airfares

Malta has emerged as one of the most popular regions in Europe. The number of inbound tourists reached 386,776 in June 2025, reflecting a nearly 11% increase relative to the previous year. The island’s sole airport also recorded over 923,000 passengers in July, solidifying it as one of the island’s busiest periods in history. Beaches, historic sites, and a myriad of other attractions welcomed tourists as hotels and other amenities continued to enjoy robust business.

However, such growth tourism has consequences. The year-over-year increase in air passenger transport inflation in Malta surged to 46% in April 2025. Even in the following May and June, prices remained far above the average for the euro zone. With 35% more airline seats available compared to 2019, demand continued to outstrip supply. On the busiest day in June, over 35,000 passengers boarded 218 flights which represents severe capacity limitations.

The Central Bank of Malta has issued a statement regarding airfares being one of the dominant factors for inflation in the cited region. Malta remains one of the countries where airfares contribute roughly 30% of the overall inflation value. With free carbon allowances being removed by the EU and slated for mandatory green fuel regulations, it is likely that the cost of flying to, and from, Malta will be elevated for a considerable duration.

Malta Magic: Ancient Wonders and Island Vibes

Places to Visit

• Valletta: Explore the capital’s UNESCO-listed streets and St. John’s Co-Cathedral.
• Mdina: Wander the “Silent City” with medieval charm.
• Blue Grotto: See Malta’s famous sea caves and crystal waters.

Things to Do

• Take a harbour cruise around Valletta and the Three Cities.
• Dive into Malta’s world-class scuba spots.
• Try traditional rabbit stew and pastizzi at local cafés.

Must Visit

• Gozo Island for rural charm and beaches.
• Comino’s Blue Lagoon for turquoise waters.
• Grand Harbour views at sunset.

Italy’s Tourism Thrives but Tickets Cost More

Italy’s recovery in 2025 has been remarkable. In the region of quarters 1 and 2, the Italian airports recorded a traffic of 106.45 million passengers serviced, with the regions of Naples, Milan, and Rome contributing the most. Additionally, the foreign tourism spending in Italy rose to €8.6 billion, a testament to its ability to attract high spending tourists. ENIT, the national tourism agency, forecasted 27 million tourists for the summer, including 18.8 million international tourists arriving by air.

As the demand has risen, airfares have increased to new highs. On routes to Venice, Florence, and Milan, air fares increased by almost 20, especially in the Venice Florence and Milan regions. Additionally, low cost carriers that used to offer cheap tickets have significantly raised their fares due to increased demand. The end result is expensive travel and high demand tickets on high demand routes, forcing people to board packed flights.

Although Italy has remained as one of the most sought after destinations in the worldalong with the US, Italy’s affordability is being tested. Italian regions and groups shall shorten their stays in the country, being forced to choose less affordable regions within Italy. While the increased spending on flights and travel is benefitting hotels, as well as the tourism and hospitality industry, in the long run the slower growth is concerning.

Italy Icons: Culture, Food, and Coastlines

Places to Visit

• Rome: Colosseum, Vatican, and Trevi Fountain.
• Florence: Renaissance art and Ponte Vecchio.
• Venice: St. Mark’s Square and gondola rides.

Things to Do

• Eat pizza in Naples and gelato in Florence.
• Drive the Amalfi Coast.
• Visit vineyards in Tuscany.

Must Visit

• Leaning Tower of Pisa.
• Cinque Terre’s colourful villages.
• Milan’s Duomo and fashion streets.

Portugal Balances Growth with Expensive Airfares

Portugal’s tourism sector reported positive tourism results for Q2 2025. Between April and June, the country hosted 9.2 million visitors and recorded 23 million overnight stays which is an increase of over 4% in both metrics year on year. In June alone, 3.1 million visitors stayed at Portuguese hotels which cumulatively contributed to 8.1 million overnight stays indicating the persistent demand. Lisbon, Porto, and the Algarve are at the forefront of this growth.

However, flights to Portugal are becoming more expensive. The country’s airfare index reached 149 points in April 2025 which is the highest since the pandemic recovery began. Domestic routes surpassed this average as limited availability on short-haul flights drove up demand and subsequently prices. By June, there was a slight decrease, but prices remained much higher than the 2024 figures.

The tourism authorities of Portugal are welcoming the boom but acknowledging that there are still a few hurdles to overcome. While hotel and restaurant services benefit from higher tourist spending, the increase in airfare could demand a reconsideration from travelers. In the event that high prices persist into 2026, Portugal will need to focus more on off-season travel to maintain demand and sustain growth.

Portugal Paradise: Sun, Surf, and Culture

Places to Visit

• Lisbon: Alfama, Belém Tower, and trams.
• Porto: Ribeira, wine cellars, and river views.
• Algarve: Golden beaches and sea cliffs.

Things to Do

• Taste Port wine in Douro Valley.
• Surf the waves in Nazaré.
• Ride a tuk-tuk through Lisbon’s narrow streets.

Must Visit

• Sintra’s fairytale palaces.
• Madeira’s hiking trails.
• Azores volcanic lakes.

Greece Enjoys Tourism Boom with Higher Flight Costs

Greece remains prominently popular as one of Europe’s leading hot spots. Travel receipts reached €3.31 billion in June, marking an increase of nearly 9% compared to the previous year. For the first half of 2025, tourism earned the country €7.66 billion, which is an 11% rise in comparison to 2024. Notable increase of 11.7 million inbound travellers, alongside a nearly 5% rise in air arrivals, supports the claim that Greece continues to attract holidaymakers for the summer.

On the other hand, air travel fares are in direct correlation with the increase in demand. Greece’s airfare index reached an all-time high during Q2 2025, with April marking the sharpest increase. Starting June, fares have once again increased as the summer peak season commences. For those travelling to Santorini, Mykonos, or even Athens, getting tickets is becoming considerably more expensive in comparison to the previous year.

Striking the balance between the increased receipts and fares confirms that tourism has strongly rebounded. It is evident that resorts are packed to capacity, cultural sites, alongside the beaches, are overflowing with visitors. Maintaining the current trend of affordability is a concern, as Greece stands to lose a number of price-sensitive travellers from regional markets seeking alternates.

Greece Glory: Islands, History, and Beaches

Places to Visit

• Athens: Acropolis and Plaka district.
• Santorini: Whitewashed houses and caldera views.
• Crete: Knossos Palace and rugged mountains.

Things to Do

• Island hop across the Cyclades.
• Enjoy Greek cuisine with souvlaki and fresh seafood.
• Watch the sunset in Oia, Santorini.

Must Visit

• Meteora’s cliff-top monasteries.
• Rhodes old town.
• Delphi’s ancient ruins.

Croatia Hits Record Numbers with Airfare Pressure

The coastal region of Croatia has enjoyed a boom in tourism. As of June 2025, the country has recorded 3.2 million tourism arrivals, which is a 12.6% increase from the previous year. Moreover, the number of overnight stays has also increased to a total of 14.3 million, marking a 14.5% increase. As of mid2025, total arrivals reached 7.2 million and overnight stays increased to 25.9 million. Cities and regions which are key to the growth include Dubrovnik, Split, and Istria.

On the other hand, airfare costs are still an issue. Croatia’s official airfare index has stayed high for the entirety of Q2, which reflects the industry’s high seasonal demand. As is customary, airline companies are aware of the fact that they are able to fill seats during the enhanced summertime tourism which makes airfare expensive for visitors. While this serves airline companies, it hinders travel to Croatia.

The growing costs alongside increased travel may lead to enduring concerns. Although Croatia is incredibly popular as a travel destination, the country is also known for its neighboring countries which tend to be cheaper. For Croatia to be able to sustain the impressive tourism figures, the country needs to strike a perfect equilibrium of tourism and investment in travel during offseason.

Croatia Charm: Adriatic Beauty and Old Towns

Places to Visit

• Dubrovnik: Walk the medieval walls and old town.
• Split: Explore Diocletian’s Palace.
• Plitvice Lakes: Stunning waterfalls and turquoise lakes.

Things to Do

• Sail along the Dalmatian Coast.
• Swim in Hvar’s hidden bays.
• Join a Game of Thrones tour in Dubrovnik.

Must Visit

• Krka National Park.
• Zagreb’s museums and markets.
• Korčula island wineries.

Spain Breaks Records as Airfares Spike

Spain is once again at the forefront of European tourism. The country received 9.5 million international tourists by June 2025, and cumulative visits to the country in the first half of the year reached 44.5 million, a 4.7% increase relative to 2024. Aena even reported record traffic at the airports, claiming to have 30.48 million passengers in June, the busiest June ever. Other key regions such as Barcelona, Madrid and Malaga are also witnessing record hotel occupancy rates.

Spending growth also stems from tourism. International guests spent 13 billion euros in June, a 5.5% increase from the previous year. This rise also positively impacted the local economy, and the average Spain tourist spend reached to 209 euros. The positive growth in average spend is a great sign of the economic recovery post pandemic, and the local tourism economy is forecasted to receive more visitors in the coming years.

In mid 2025, Spain’s domestic flight prices skyrocketed by 21.3% marking the highest increase since 2017. This was not just limited to domestic flights as international flights also faced the same trend. With Spain claiming record international tourist visits, international flights to Spain is slowly emerging to be a major barrier to growth.

Spain Splendour: Beaches, Cities, and Festivals

Places to Visit

• Barcelona: Sagrada Familia and Park Güell.
• Madrid: Prado Museum and Royal Palace.
• Seville: Alcázar and Flamenco shows.

Things to Do

• Enjoy tapas in Granada.
• Dance at Ibiza’s nightlife spots.
• Watch a football match in Camp Nou or Santiago Bernabéu.

Must Visit

• Alhambra in Granada.
• Camino de Santiago pilgrimage route.
• Valencia’s City of Arts and Sciences.

Iceland Sees Adventure Tourism with Higher Costs

Economically Iceland is another country enjoying strong momentum like tourism. In June 2025 hotels posted figures of 534,000 overnight stays, signifying a 9.4% increase relative to the preceding year. In the same month, Keflavík Airport serviced close to 870,000 passengers, a glaring indicator of the robust ne inbound demand. The island’s strongest asset for tourism continues to be nature which is of great interest to people from North America, Europe, and Asia.

However, the cost of flying to Iceland has increased. In June 2025, Statistics Iceland reported a 12.7% increase in international fare on a month to month basis. The surge in demand coupled with this increase has also inflates the country’s consumer price index rising the rental cost of flying to Iceland. For tourists, the previously outlandish costs of accommodation coupled with the rising rental price of flying to Iceland only makes the situation worse.

Regardless, interest remains high. Tourists in pursuit of glaciers, volcanoes, and the northern lights are willing to make the financial sacrifice. Iceland will need to deal with the astounding number of visitors due to the current surge of unbridled demand while attempting to price tourism reasonably.

Iceland Adventures: Nature at Its Wildest

Places to Visit

• Reykjavik: Hallgrímskirkja and Harpa Concert Hall.
• Golden Circle: Geysir, Gullfoss, and Thingvellir.
• Vatnajökull Glacier and ice caves.

Things to Do

• Relax in the Blue Lagoon.
• Go whale watching.
• Hunt for northern lights in winter skies.

Must Visit

• Jokulsarlon Glacier Lagoon.
• Dettifoss, Europe’s most powerful waterfall.
• Snæfellsnes Peninsula, called “Iceland in Miniature.”

Why Airfares Are Rising Across Europe

Malta, Spain, Greece, Portugal, Croatia, Italy, and Iceland share similar patterns. Aside from fully recovering, tourism in these regions is now more robust than ever; nevertheless, aviation capacity continues to lag. Although airlines are trying to keep up with ever-increasing demand, they are already adding more seats. Unfortunately for travelers, this means overpriced tickets on fully booked flights.

Rising costs are compounding the problem. Jet fuel, for instance, continues to be costly, airport fees are increasing, and the cost of labor is ever rising. To add onto this, the EU is set to phase out free carbon allowances, forcing airlines to switch to expensive sustainable fuels. Given these burdens, there is little to no hope for airfares to drop anytime soon.

Currently, the surge in tourism is aiding local economies, as well as restaurants and hotels. On the downside, the cost of flights has now skyrocketed for travelers trying to navigate Europe. To offset this, travel for families will need to shift to off-peak times, booked well in advance, or settle for more budget-friendly options. How Europe balances tourism expansion with affordability will likely shape the region’s travel industry for years to come.

Malta joins Italy, Portugal, Greece, Croatia, Spain, and Iceland in a new tourism boom gone wild in Europe as airfares hit unbelievable peaks because record demand, limited seat supply, high fuel costs, and strict EU climate rules are driving prices higher.

Along with Italy, Portugal, Greece, Croatia, Spain, and Iceland, Malta displays the impacts of the tourism excess of Europe for the year 2025 and the unreasonably high airfares. The demand is unyielding, manifesting in record hotel occupancy and increased spending, however, airfares are well beyond normal. The pressure is due to limited seat availability, strict EU climate policies, high fuel costs, and climate rules.

The tourism excess has, without a doubt, fueled growth and created jobs, but rising the airfares remain the constant problem. Families and travelers face increased costs with the risk of being unwelcomed to the price-sensitive audience. Policymakers, airlines, and tourism boards need to address the rising prices head-on.

Europe is too dependent on the tourism industry, with rising costs while demand remains strong the boom may decline. Malta, Spain, Italy, Croatia, and the rest of the countries heavily depend on smart policies and advancement in eco-friendly technologies.