Luxembourg's tourism industry has demonstrated remarkable resilience and growth throughout 2025, with inbound arrivals on track to increase by 2–3% year-on-year. The Grand Duchy has successfully navigated a complex global landscape, outperforming European travel trends in the spring and autumn and solidifying its position as a destination of choice for discerning travellers. This robust performance is underpinned by a strong hotel sector, an excellent online reputation and a series of strategic initiatives that have captivated a diverse international audience.
Market dynamics: momentum in key markets
The Italian and French markets have been pivotal to this year’s success, showing striking growth of 32% and 19%, respectively, in the first ten months of 2025. This influx of visitors highlights a growing appreciation for Luxembourg’s distinctive blend of cultural heritage, urban charm and natural beauty. While the Dutch market has seen a slight downturn, the overall picture is one of healthy expansion, with projections for 2026 indicating continued growth from key European markets. Demand at campsites has stabilised at a high level, and nights in short-term rentals are estimated to have increased by 6% (January-September).
Hotel sector: solid performance despite headwinds
The hotel industry has also been a cornerstone of the positive performance in 2025, with a notable 3% increase in Revenue Per Available Room (RevPAR). Occupancy rates have also risen to a healthy 75% in the first ten months of the year, confirming that demand for overnight stays remains strong. Despite these encouraging figures, hoteliers continue to face significant headwinds, including high operating costs, persistent labour shortages and the challenge of keeping pace with rising quality expectations. Even so, the sector has shown a remarkable ability to adapt, and the share of hotels forced to postpone investments has fallen compared with last year, signalling a cautious return of confidence.
Digital footprint: a standout online reputation
Luxembourg’s online reputation has become one of its most valuable assets. The country’s Net Sentiment Index, a key measure of how positively a destination is perceived in online conversations, reached an impressive 87 out of 100 in October, clearly ahead of the European benchmark. Positive sentiment is fuelled by enthusiastic mentions of cultural discoveries, events, castle visits, nature experiences and slow travel. At the same time, Luxembourg ranks among the top European destinations in terms of perceived sustainability, reinforcing its image as a forward-looking, responsible place to visit.
Looking ahead: confidence for 2026 and beyond
The outlook for 2026 is distinctly upbeat, with inbound arrivals forecast to grow by around 2%, followed by a further acceleration in 2027. Growth is expected to be driven by the continued return of long-haul travel, strong demand from Belgium, the Netherlands and Italy, the rising appeal of “coolcations” and slow travel, and a clear demand for authentic, high-value-for-money city and nature breaks. The German market in particular offers strong potential, with more Germans indicating that travel is a high priority and that they have both the time and the means to take short trips throughout the year. At the same time, evolving traveller behaviour – from greater price sensitivity to more frequent but shorter trips – plays to Luxembourg’s strengths as a nearby, easy-to-reach and highly liveable destination.
Luxembourg enters the new year with solid fundamentals: a competitive and adaptable accommodation sector, a powerful digital reputation, and a visitor offer that aligns closely with what European travellers are now seeking. On this basis, the Grand Duchy is well placed not only to consolidate the gains of 2025, but to continue its trajectory as one of Europe’s most compelling small destinations.
