The COVID-19 outbreak in early 2020 brought tourism’s decade-long boom to a standstill. Worldwide tourism declined by 73% in 2020 compared to the previous year, while Europe saw a decline of 68% over the same period. In 2021, the European tourism economy was bouncing back from the severe impacts of the Covid-19 pandemic supported by increased vaccination rates and the EU Digital COVID Certificate, which enabled the easing of travel restrictions and the reopening of tourism destinations. Although such developments are cause for enthusiasm, it remains important to consider the lingering risks of new Covid-19 variants emerging and the possibility of travel restrictions being reimposed. Inflationary pressures on household spending, and geopolitical tensions also continue to hold back the complete recovery of the tourism sector.