The World Travel & Tourism Council (WTTC) summit, often referred to as the “Davos of Tourism,” brings together leaders and ministers from around the world to ensure they are moving in the same direction. The 2026 edition in Malta highlighted the need for public and private sectors to work together to preserve innovation, which benefits everyone. However, this is not yet the case in Europe, according to Jean-Philippe Monod de Froideville, Senior Vice-President at Expedia Group, who is concerned about regulatory inflation hindering innovation.
“Europe has talked a lot about simplifying, but we haven’t really seen simplification, we’ve seen an increase in regulation,” he explains. “I’ve never seen legislation that was removed.” He attributes this phenomenon to the segmentation of different travel components, resulting in a lack of real simplification and a continuous pileup of norms without abolishing existing rules.
Regulatory Challenges
Applying constraints developed for sensitive industries to tourist technology would hinder the sector’s digitization. “When using AI, it’s essential that governments make a distinction in regulation according to the level of risk,” Jean-Philippe Monod de Froideville insists.
Finance ministries often view tourism as a source of tax revenue. The Senior Vice-President of Government & Corporate Affairs is concerned about the spread of these practices as standard regulatory models that are imposed internationally. “If a regulation is not ‘future-proof,’ it can be exported, and other countries will copy these mistakes,” he considers. “That’s why we need to minimize these regulations to prepare them for future developments.”
Europe contributes to the diffusion of these regulatory models in countries where governments sometimes struggle to consider tourism as a global economic policy, reducing it to a fiscal adjustment variable. “Tourism policy is an economic policy, and that’s what many of our leaders don’t realize yet,” reminds Patricia de Lille, the South African Minister of Tourism. “Finance ministries don’t see tourism as a sector that creates cohesion or enhances the country’s image, but too often as a source of tax revenue.”
Converging Interests
Recent artificial intelligence developments are not just promises of profits for major travel players but also offer ways to align tourist flows with a territory’s capacity reality. “We’ve publicly admitted that we no longer need tourists in high season,” explains Tonči Glavina, Croatian Minister of Tourism. “We’ve implemented mandatory capacity studies by law to set clear limits in terms of energy, waste, and traffic.”
Professionals like Expedia are deploying alternative solutions: “With technology, our campaigns and short-term rental offerings in areas with few hotels can direct these flows to less frequented destinations,” recalls Jean-Philippe Monod de Froideville. To preserve its dynamism, Europe must evolve the public authorities’ posture towards a facilitator role. The health crisis has led to a realization at the European Union level of the need to give central place to tourism policies, particularly due to the sector’s fragmentation.
It is imperative, according to Tonči Glavina, to give European tourism policy a place at the Union level. The urgency is not to deregulate at all costs but to operate a cultural shift: moving from a bureaucratic control logic to a facilitation posture. The future of European tourism will depend on a principle of balanced action, as summarized by investor Carlo Bonomi: “The public sector should promise less and do more. The private sector should do what it promises” and deploy innovation in service of territories and local communities.
A Balanced Approach
In the middle of these developments, it’s clear that finding a balance between regulation and innovation is key to the future of European tourism. As the sector continues to evolve, it’s essential for public and private entities to work together to create an environment that supports growth and development. By doing so, they can ensure that tourism continues to benefit both the economy and local communities, making it a sustainable and thriving industry for years to come.