MNI BRIEF: Energy Price Shock To Hit EZ Tourism Recovery - ECB

Rising prices related to the energy shock, combined with falling real incomes and increasing uncertainty, may dampen the post-Covid bounce-back in overall demand in eurozone tourism, according to the ECB’s latest economic bulletin.

Overall, eurozone supply-side bottlenecks have eased since mid-2022, easing still-elevated upside price pressures.

“Tourism and recreation output prices peaked earlier this year, suggesting that consumer price dynamics for accommodation services may start to slow, although they will remain strong,” the Bulletin said. “Waning pent-up demand for travel, falling real incomes, rising uncertainty and higher prices may start to dampen demand for tourism and recreation services in the coming months.”