Turbulence in Mediterranean tourism

Since mid-2015, the Mediterranean region has been rocked by a series of events that have collapsed major tourism markets like Egypt and Tunisia. This phenomenon has led to a substantial diversion of demand toward the countries of the Northern Mediterranean as evidenced by the rise in hotel prices. This growth in demand, however, has not been broad-based. While it has significantly benefited destinations such as the Balearic Islands, other destinations have seen a rather small effect. Also, at the level of company type and category, the new situation has primarily benefited low-end and mid-range establishments and major hotel chains. Lastly, Brexit has added market uncertainty and pushed down both the British pound and the share prices of large companies in the tourism sector-phenomena that will have long-term effects.