Tourism’s strong rebound after COVID has exceeded all expectations as most countries around the world are experiencing tourism inflows that are in many cases unprecedented.  Many claim however that this is a form of “revenge travel” as people try to make up for the lost travel opportunities during COVID and are dedicating all their “spare cash” to travel.

While tourism numbers continue to reach record levels, the industry is showing developing trends that will determine the future of the industry.

The segment that is showing the strongest growth is that of Millennials and GenZ, people who were in many cases already exposed to the joy of travelling at a young age, through their parents.  Together these are the biggest market segment and are very vocal about what they want, especially their support for sustainable development within the tourist industry.  Eco‑conscious travel is here to stay as an increasing number of tourists are choosing green accommodations, off‑beat destinations, and experiences that prioritise respect towards the environment, traditions and cultural heritage.  Sustainability, responsible tourism, eco‑friendly practices, heritage preservation, and local engagement will not only appeal to millennials and GenZ’s but to a growing segment of conscious travellers as well. Travellers will increasingly value authenticity over commoditised “mass tourism.” Emerging or less‑crowded destinations, or those offering unique experiences, stand to benefit.

More travellers are looking at more immersive travel as they seek to be participants and not simply an audience.  They are seeking experiences that go beyond the typical “sun‑and‑sea” holiday.  Flexibility and personalisation will determine success as destinations and resorts need to adopt and tailor offerings to different traveller profiles.

Travellers are also driving the use of artificial intelligence (AI) in trip planning and bookings which has increased sharply, from about 10% in 2024 to around 18% in 2025. They are using AI tools for personalised itineraries, price comparisons, and to discover less‑crowded, off‑beat destinations.

The boom of platforms like Airbnb serviced the growing demand for more flexible, adaptive travel services and for accommodations that can tailor offers to individual preferences.  Travellers will be less and less excited by using a standard hotel with no authentic feel as they look for local accommodation, ranging from small boutique hotels, large luxury lodgings or basic short-term rentals, as long as they enhance the immersive experience that they seek.

The explosion in travel has resulted in crowding in many of the traditional destination and we see Central and Eastern European countries, such as secondary cities and resorts in Poland, Hungary, Slovenia, seeing increased demand, thanks to competitive pricing combined with authentic experiences. Even traditional Mediterranean destinations remain popular, but there’s a growing shift toward less‑touristy, more affordable, and sometimes quieter alternatives, coupled with demand for travel in the less busy months of the year.

The current post‑COVID tourism boom has not only revived the global tourism industry but also accelerated a shift in traveller expectations and behaviour. The next era of tourism will be defined by sustainability, authenticity, and personalised experiences, driven largely by Millennials and Gen Z. Destinations and accommodation providers that embrace eco-conscious practices, offer immersive and flexible experiences, and leverage digital tools to cater to diverse traveller profiles will be best positioned to thrive. Meanwhile, emerging destinations and less-crowded alternatives stand to benefit from growing demand for unique, culturally rich, and off-peak travel. As mass tourism gives way to a more conscious, experience-driven model, the industry must innovate, adapt, and balance growth with responsible practices to ensure long-term appeal and competitiveness in an increasingly discerning market.

In Malta, and particularly in Valletta, many of these global tourism trends are becoming increasingly evident. The city’s rich culture and traditional social fabric, walkability, varied gastronomic offer and concentration of heritage sites position it strongly to appeal to the generation of Millennials and Gen Z, plus other travellers seeking authenticity, sustainability, and immersive local experiences. Valletta has already moved beyond the traditional “sun-and-sea” appeal of the wider Maltese product, and it is attracting visitors who prioritise culture, gastronomy, boutique accommodation, and year-round experiences. However, the city also feels the pressure of crowding and volumes of cruise visitors, making the need for managed, responsible tourism even more critical.   There are still several opportunities to highlight Valletta’s distinct character, and enhancing local experiences, from artisan workshops to intimate cultural and social events. With the option of AI-driven travel planning and the popularity of alternative accommodation, Valletta’s success will depend on sustaining its authenticity, preserving its heritage streetscape, and ensuring that its tourism offer remains both authentic and sustainable, while prioritizing the management of volume. If handled well, Valletta can really position itself as a leading example of a compact, culturally rich European capital that will thrive with the next generation of conscious, experiential tourism.

Joe Galea

9 December 2025