It's kind of weird Luxembourg doesn't want to participate, even though there is much interest in the country. RTL Group is one of the largest media companies in the world, yet they don't want to work with the Luxembourgish government to participate in Eurovision? I call BS. RTL can make a deal where they work with the Luxembourgish government and pay for part if not most of the costs for participation. Or is it that RTL Group cannot do this?
Well, they left in 1993 due to them being relegated, but also because French was declining as a popular language in Eurovision. I can see 1984 as the year where the decline began, and with a couple of exceptions in 1986 & 1988, they never really recovered. There was possibly some interest when the semis were introduced in 2004, but when they saw how terribly microstates like Andorra, Monaco, and San Marino were doing, they got cold feet. There was a large possibility of them returning in 2010, but that fell through.
However, seeing the success of San Marino and the love that country has with the Eurovision fandom, they can just use the same reasoning of returning as SM did and just state they want at tourism boost. Hosting is a different story as their largest indoor arena can hold only up to 8,300 people.
I would love to see Luxembourg back and finally have all of Benelux participate again.