Europe remains a leading region in the global tourism market due to its economic influence, innovation, and environmental sustainability. The study aims to create an effective investment decision-making system in the European tourism sector by using key economic indicators to analyse market conditions, identify priority investment areas, and improve the effectiveness of management actions in a changing economic environment. The research methodology included correlation, statistical, graphical, abstract logical, systemic, and comprehensive analyses. The key economic indicators of the European market were selected for the study’s analysis. The result is an implicational map of the industry cycle life stages based on the integration of indicators. This allowed a comprehensive assessment of the current state and potential of economic development in Europe, considering the regional division into Western, Central, and Eastern Europe. This division formed the decision-making system of flexible investment management. The originality of the study lies in the development of a concept of investment decision-making that takes into account such pan-European priorities as green transformation, digitalization, inclusive growth, and regional tourism features and allows integrating methods of modern economic analysis and ensures investment decision-making based on expected benefits and dynamics of system parameters. In general, the conclusions drawn in this article are novel and have important policy implications for promoting the sustainable development of the European tourism sector.