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Cool Tourism – Opportunity for Northern European Seaside Destinations

11/21/2024
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Recent summers have been characterised by heatwaves in Europe’s traditional summer holiday favourite destinations of Spain, Italy and Greece. The first is also seeing signs of a growing rebellion amongst residents against overtourism. With this in mind, European holidaymakers are showing an interest in alternative destinations with a cooler climate in Northern Europe. Whilst the number of days when it’s too warm to be enjoyable is increasing in the south, the number of days when the temperature is pleasant in the north is on the increase. Which European destinations have the most potential to ride on the emerging “cool tourism” wave?

Tourism to colder weather destinations not a new concept

Cool tourism is not new, as beach holidays are not to everybody’s taste. Travellers have always had the choice of holidaying in the mountains, such as the Alps, or visiting northern latitudes such as Iceland or the Arctic. Indeed, even Svalbard (Norway) at 78 degrees north can now easily be booked via major OTAs. These destinations will undoubtedly increase in appeal should temperatures continue to rise. Furthermore, they are also well positioned to benefit from the growing interest in adventure and experiential tourism.

By 2029, Euromonitor forecasts that the Nordic countries and Baltic states will attract 58 million inbound leisure visitors with tourism spending of USD102 billion

Source: Euromonitor International

This article will focus on seaside tourism and the potential for Northern European resorts as a substitute for the traditional Mediterranean destinations.

The Baltic Sea has much potential for cool tourism. The continental coast offers an almost unbroken shoreline of sandy beaches stretching from Northern Germany, Poland and Lithuania up to the Latvian-Estonian border, whilst the Nordic sides feature the stunning archipelagos of Sweden and Finland. The Baltic’s salinity of less than a quarter of average ocean levels makes it more congenial to bathers and visitors can also make the most of the longer summer days for activities, experiences and even getting a suntan.

Chart showing Forecast Inbound Leisure Arrivals to Baltic States 2024/2029Creating destination awareness is a challenge for the Baltic region

The Baltic region has challenges to overcome in establishing itself as a cool travel destination. Most simply, there is limited awareness of what the region has to offer in terms of relaxation-focused seaside tourism, not least as these destinations have previously mostly positioned themselves for city breaks and adventure tourism. Like for all new destinations, brand building through storytelling will be important to entice visitors. The cool travel concept has been receiving more attention, being covered by Vogue magazine, whilst the Michelin guide has highlighted restaurants in Lativa and Lithuania.

The Nordic countries have a reputation of being expensive, especially for food and dining. This will become all the more important as although consumers are willing to pay more for travel, they are increasingly focused on seeking out value for money.

The Swedish island of Gotland, boasting the medieval city of Visby, already has its own problems with overtourism from its domestic market. Connectivity from outside of the Nordic region is also limited. Similarly, the autonomous Åland islands (Finland) need to sell the concept that “getting there is half the fun” by arriving via a mini-cruise by ferry; they too are hindered by not being a cheap destination.

The Baltic states have the most potential to capitalise on cool tourism

Euromonitor International believes that the Baltic states, Lithuania, Latvia and, to a lesser extent, Estonia, will have the most potential to capitalise from the cool travel trend. All have extensive shorelines. Lithuania has the unique Curonian Spit, already a domestic tourism favourite blending villages and gigantic sand dunes. Meanwhile, Latvia has an unspoilt 500km shoreline with plenty of space to develop visitor accommodation without the risk of overcrowding. Although hospitality prices have been rising in recent years, the Baltic states continue to have the advantage of being a budget-friendly destination, especially for lodging which is the largest outgoing for most trips.

Overall average spend per trip for the Baltics compares favourably with the main Mediterranean destinations

Source: Euromonitor International

Chart showing Average Spend per Inbound Leisure Trip to Baltic States vs Selected Mediterranean  Destinations 2024In order to fully leverage the cool tourism trend, the region will need to increase its accommodation capacity and improve its transport networks. That said, existing coastal airports in Palanga (Lithuania) and Liepāja (Latvia) currently represent underutilised infrastructure. Meanwhile, the Latvian capital, Riga, with the largest airport in the region, sits next to the established seaside resort, Jūrmala.

The Baltics also fit well with the intertwined trends of flight shaming and slow travel, as they are closer geographically to key source markets such as Germany and the Netherlands. Currently under construction is the 870km Rail Baltica high-speed mainline, which from 2030 will connect the region to the continental standard gauge rail network. Facilitating flight-free travel along with the current “undertourism” in the region fits well with the increased consumer interest in sustainable travel.

Read our article, Traveller Segmentation: Cultural Explorers Shaping the Future of Tourism, for more analysis on the drivers of tourism to emerging destinations.

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