Germany's Tourism Sector Shows Recovery, But International Spending Lags
Germany's Travel & Tourism sector is showing signs of recovery, with domestic spending exceeding pre-pandemic levels. However, international visitor spending and the sector's overall contribution to the economy remain below 2019 levels, despite the EU sector's growth.
Domestic tourism has been the driving force behind Germany's Travel & Tourism sector, with domestic visitor spending surpassing 2019 levels by €2.9BN in 2023. Meanwhile, the EU sector grew by more than 8% in 2023, with international spending reaching €471.5BN, nearing pre-pandemic levels. Looking ahead, with the right government support, the sector could contribute nearly €554BN to Germany's GDP by 2034 and employ almost 6.5MN people.
However, the sector faces challenges. International visitor spending in Germany remained more than 25% behind 2019 levels in 2023, with a deficit of €14BN. The sector's GDP contribution, jobs, and international visitor spend have yet to fully recover to pre-pandemic levels. WTTC forecasts that while the sector will contribute almost €469BN to the German economy in 2024, jobs and international visitor spending will remain below 2019 levels. The recent increase in airline passenger taxes is further hampering the recovery.
The German government is urged to collaborate with Travel & Tourism businesses to stimulate the return of international visitors, as domestic tourism alone is not enough to fully revive the sector. Despite the challenges, the sector's potential for growth remains significant, with the right support and policies.
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