France took second place, followed by Germany, while the U.K. placed fifth, Italy ranked eighth and Switzerland was tenth.
"Despite increased fear of terrorism, tourism performance of countries such as France and Germany have not declined significantly, confirming a strong resilience of the tourism sector to security shocks in the presence of strong institutions and sound fundamentals," WEF said.
Over the past two years, more than 230 people have died in France due to hostilities linked to the militant group Islamic State, according to Reuters. Last month, four people died in an onslaught on London's Westminster Bridge.
Still, Europe's cultural richness, excellent tourism service infrastructure, strong health conditions, international openness and general sense of perceived safety have trumped terror concerns, WEF said.
The organisation based its rankings on various factors, including safety, health, human resources, price competitiveness, infrastructure, and culture.