European tourism has been at the very top of the world tourism scene for decades, with Western European countries such as France, Spain and Italy leading the way. They achieve continuous growth, which they promote by adapting to growing segments of tourist demand, through digitalization and the development of sustainable tourism. Tourism faces many challenges, of which the most relevant for Europe at the moment are the Covid-19 pandemic, terrorism and the evolution of tourist demand. The pandemic has caused a wave of layoffs and huge economic losses in the tourism sector, and some see it as an opportunity to boost rural tourism and deal with the gray economy. Terrorist attacks in 2015 left brief consequences on the perception of the security of European countries, and served as a warning of the need to constantly invest in the safety of visitors. The emergence of new generations of tourist demand and the aging of the population bring with them the challenge of how to adapt to them. For this reason, many European countries are turning to creating sustainable tourism products and digitizing the sector.