This final paper examines the economic effects of tourism on the European Union economy and provides a general outline of the regulatory framework governing tourism in the EU. The topic of legal tourism regulation in the EU is introduced at the beginning of the final paper. The financial effects of tourism on the EU economy are then thoroughly examined, including how much it contributes to the GDP of EU Member States and how it affects employment. The current state of EU tourism is then discussed in the final report, including visitor attendance, arrivals, and overnight stays in the EU Member States. Finally, the issues that the EU tourism industry is experiencing are examined along with potential solutions. A discussion on the future of the EU tourism industry finishes the study. Tourism has a substantial economic influence on the EU, increasing the GDP of its Member States and creating job possibilities. The state of EU tourism is presented, demonstrating that the sector is a significant source of income for several EU Member States. The need to strike a balance between economic growth and sustainability, the effects of climate change on tourism, and the advent of new technologies are just a few of the issues facing the EU tourism industry. Expansion tourism offerings, promoting eco-friendly tourism practices, and investing in new technologies are all suggested solutions to these problems. The potential for expansion and the requirement to confront new difficulties are highlighted in relation to the future of the EU tourism industry. Overall, the paper offers a thorough examination of the legal framework and financial effects of tourism in the EU, showing both the opportunities and difficulties the sector faces.