Travel, Tourism & Leisure in Germany
FACT SHEET
Travel, Tourism & Leisure in Germany
ISSUE 2020/2021
International travel and tourism continues to grow. Europe is the most popular tourist destination in the world, with European Union countries receiving almost half of all international arrivals. Germany is Europe’s Germany’s Tourism largest travel and tourism economy and ranks third in global competition. Economy in Numbers
Global market growth World tourism continues to grow according to the UN World Travel Organization (UNWTO). By 2030, UNWTO forecasts EUR 290 billion around 1.8 billion international arrivals worldwide. The World Tourism Overall Turnover 2018 Travel & Tourism Council (WTTC) also reports that travel and tourism grew by 3.9 percent in 2018 – higher than overall global economy growth of 3.2 percent. Globally, one in every World Number 3 five new jobs created in the last five years has been in the Travel and Tourism Economy travel and tourism sector. The growth trend is set to con- tinue, with UNWTO forecasting more than 66 percent growth on 2013 international arrival levels by 2030 (rising to more than 1.8 billion arrivals). International arrivals to Europe are 478 million expected to rise to 744 million (31.4 percent growth) during Overnight Stays 2018 the same period. Interntonl uests Destination Germany in global demand 88 m Germany is one of the world’s favorite travel destinations. The World Economic Forum “Travel & Tourism Competitive- ness Report 2019” ranks Germany third internationally on its Travel & Tourism Competitiveness Index. Global demand has Domestc uests grown by more than 153 percent since 1993, with overnight 390 m stays increasing by 53 million to 88 million in 2018, thereby making it the ninth record year in succession. Incoming tour- ism continues to record strong growth – and at a rate above that of Germany’s European neighbors. More than 5 million people are directly and indirectly employed in a tourism eco- → Further information nomy that generates around EUR 290 billion annually, making www.gtai.com/tourism it one of the country’s largest economic sectors. Domestic demand accounts for 85 percent of total tourism consumer Sources: AUMA 2018, World Economic Forum 2019, World Travel & Tourism spending, with international tourists making up the remain- Council 2019 ing 15 percent. MARKET OPPORTUNITIES Market Diversity Driving Success
Germany’s highly diversified travel, tourism and leisure In 2020, Germany celebrates the 250th anniversary of the sector provides excellent opportunities for international birth of Beethoven with a year-round series of events with investors in a number of segments including business a particular geographical focus on the city of Bonn and the travel, cultural tourism, city breaks and rural getaways. Rhine-Sieg district.
Cultural and Urban Tourism Business Travel
Germany’s cities remain an important international tourist Germany is Europe’s most important business travel destina- magnet. This is in part due to a wider global trend that has tion. According to a World Travel Monitor interim analysis seen a strong upsurge in city trips, but also best evidenced by conducted by IPK on behalf of the German National Tourist Germany’s growing reputation as an attractive travel destina- Board (GNTB), overnight stays in the business segment are tion. Fifty-seven percent of all overnight stays in 2018 were growing at a faster rate in Germany than the rest of Europe – in cities with more than 100,000 inhabitants, with a further particularly in terms of foreign guests. The GNTB reports that, 23 percent made in conurbations with 10 to 100,000 inhabit- of the 64.5 million foreign business trips made by Europeans ants according to the Federal Statistical Office. The share of in 2018, around 13 million of them were to Germany. international guests is above the national average in 21 of the 26 major tourist cities according to the Leibniz Institute for This is more than Germany's nearest competitors, France and Regional Geography. Italy, combined, who follow in second and third places with 4.9 million and 3.9 million business trips respectively. The IPK New business models driving demand figures illustrate that Germany has consolidated its position Major cities in particular have been the beneficiaries of the as the most important business travel destination within “new urban tourism” that sees “explorer tourists” take advan- Europe by some distance. tage of new sharing economy accommodation models for an “authentic” cultural and social experience beyond the main- Germany is the world's leading trade fair location stream. Germany’s cities also continue to find growing favor The country also enjoys a disproportionately large share of with international tourists and are the favored travel destina- the global business travel market – ranking first worldwide tion amongst Europeans. Cultural tourism remains a major as an international trade fair location and as the number one asset, with landmark cultural events – like the recent Bauhaus conference location in Europe. Increases in the MICE (Meet- centenary year in 2019 – proving popular with domestic and ings Incentives Conventions Exhibitions) segment are helping international visitors alike. offset a further downward trend in traditional business trips.
178 9.5 m ITB Berlin – The World’s Leading Travel Trade Show
International and National International and Trade Fair Germany hosts the world’s biggest tourism and travel Trade Fairs in 2018 Visitors in 2018 trade fair each year in March in Berlin. Countries, cities and regions, tour operators, online booking services, hotels and service providers from over 180 countries regularly attend to promote their products and ser- vices. The ITB is the leading business platform for 4 of 10 2/3 global tourism – generating turnover of EUR 7 billion – and a major international industry presence, with ITB-branded satellite events across the globe.
World’s Largest Exhibition World’s Leading Trade Fairs → www.itb-berlin.de Grounds in Germany Take Place in Germany
Source: AUMA 2019 Germany remains the most important business travel Overnight Stays in Major German Cities 2018 destination for Europeans and continues to gain ground in million in the holiday trip market according to the World Travel Monitor analysis. Berln 328
Nature and Sustainable Tourism Mun ch 171
Germany’s rural regions constitute an important segment of Hmbur 145 the country’s travel, tourism & leisure market. The country’s Frnfurt 101 105 nature parks, 16 national parks, 16 UNESCO biosphere reserves, and numerous island destinations are a major Colone 63 attraction for great outdoors enthusiasts and families alike. D sseldorf 50
International overnight stays up Dresden 46 Germany occupies third place internationally as a nature- based travel destination for Europeans. A Quality Monitor Stuttrt 39 survey of German tourism finds that 30 percent of foreign Nurember 36 holidaymakers to Germany likewise consider nature and the environment to be important travel factors when selecting a Le pz 34 destination. During the period 2005 to 2018, overnight stays by foreign visitors to smaller towns and villages with up to Accomodation providers with 10 beds/parking places or more. 10,000 inhabitants increased by 46 percent according to the Source: German Tourism Association 2019 Federal Statistical Office.
Leisure Tourism Favorite Activities of German Holidaymakers while on Germany’s leisure and recreational tourism sector also caters Holiday in Germany in 2018 to a growing water- and theme park market catering for family activities and holidays. The country currently has V st n culturl/ around 100 theme parks, with major new projects springing 57% h stor cl ttrct ons up around the country in order to meet new demand. Europa Park in southwestern Germany is the second most-visited Be n monst 57% nture theme park in Europe, with over 5.7 million visitors in 2018.
Wl n 36% Increased foreign investment round In November 2019, the EUR 180 million Rulantica indoor Eno n tp cl 35% water park was opened adjacent to the 95-hectare site in a d shes nd dr ns sign of continued growth in the market. The Tropical Islands Spend n t me w th 33% resort in Brandenburg celebrated its 15th anniversary in 2019. fm l/prtner/fr ends Acquired by the Malaysian Tanjong PLC/Colin Au consortium Attend n in 2003, the site is home to the biggest indoor rainforest in 30% events the world. Tropical Islands was sold and integrated into the Spanish Parques Reunidos group, a leading operator of theme H n 27% and amusement parks worldwide, in December 2018. A grow- ing number of international investors recognize the market Act v t es n/on/ 19% opportunities available in the leisure and recreational tourism b the wter market, as demand for self-contained holiday experiences Shopp n 18% with on-site services grows. The Austrian Mayer Family Hotels Group has invested EUR 50 million in a luxury family hotel V st n "exper ence" 16% project that is set to open in December 2021. Easily reachable fc l t es from Leipzig, Frankfurt and Berlin, the hotel is part of the Familux group of hotels. Source: German Tourism Association 2019 Tourism in Germany by Federal State
Overnight stays 2018
0-10 million stays 11-20 million stays 21-40 million stays
International guests Domestic guests
Number of overnight stays per 1,000 inhabitants 18 2007 (in thousand) 2017 (in thousand) 7.6 10 8 16
Kiel 7.5 Schleswig-Holstein
8 Mecklenburg 4 Western-Pomerania Schwerin 9 4 Hamburg 2 5 5 4 Bremen
Niedersachsen 4 3 Berlin
Hanover Potsdam Brandenburg Magdeburg 2 3 5 4
North Rhine- Saxony-Anhalt Westphalia Leipzig Saxony 4 5 Düsseldorf 5 4 5 Dresden Cologne 4 Erfurt
Thuringia 5 5 Hessen
Frankfurt 7 Wiesbaden 6 Rhineland- Palatinate Mainz 3 2
Saarland Saarbrücken Baden- Nuremberg Württemberg
Stuttgart 4 5 Bavaria
Munich
Source: Federal Statistical Office 2019 MARKET TRENDS AND DEVELOPMENTS Tomorrow’s Travel Market
Digitalization is also shaping tomorrow's travel, tourism Artificial intelligence creating new opportunities and leisure market, with "travel tech" adapting to meet Growing demand for artificial intelligence and machine- changing customer demands. learning solutions in the tourism and travel sector provide excellent opportunities for digital product and service pro- Digitalization viders. New market entrants have an excellent opportunity to lever a number of technologies (e.g. augmented reality Digitalization is the single most important issue for the and voice services) for increased operational efficiency and development of travel and tourism up to 2030 according to new product and service development. the Federal Government Centre of Excellence for Tourism. The greatest growth potential in the online market during this Travel Tech period lies in the search, information and booking of travel services using smart phones and mobile devices. This trend is Travel tech refers to the use of digital technologies in the particularly pronounced in Germany as a result of the signifi- travel, tourism and leisure sector to provide new product and cantly high volume of smart phones in comparison with other service models. Online travel agencies and search and plan- European countries. ning platforms now represent the first point-of-contact for travelers. Digitalization is having a paradigm-changing effect Digital services transform customer journey on the travel and tourism value chain. The rise of online book- Today, “customer journeys” increasingly take place online, ing platforms and the “sharing” economy represent real and and, more often than not, in a mobile context. High smart significant challenges to traditional travel and accommoda- phone penetration levels and the advent of 5G mobile inter- tion providers. net delivery will further transform product and service provi- sion, with augmented reality and voice-recognition services Online market continues to grow increasingly coming into their own. Beyond search and book- Although analogue service provision continue to account for ing platforms, smart phone assistant and voice-activated the lion’s share of holiday and private travel turnover (more services will also become a commonplace in hotel offerings. than EUR 38 billion or 57 percent), online turnover now occu- Significant market opportunities exist for digital start-ups pies around 43 percent of the market – equivalent to more providing tailored, open data-management solutions. The than EUR 29 billion – according to the German Travel Associa- global challenge of compatibility of IT systems and standards tion. The offline sector itself is also increasingly turning to in the travel, tourism & leisure market presents further complementary digital services – including mobile device use opportunities still. during consultations, live webcam displays and 360-degree accommodation views – to secure new business.
Holiday and Private Travel Online and Offline Revenue Development 2018
Offline travel agent: 57% Brokerage rail 43% Offline travel total travel/flight/other Others Online travel total EUR 37 bn EUR 2 bn EUR 1 bn EUR 29 bn Online product portals Tour operator direct EUR 5 bn sales offline EUR 6 bn Online travel agents EUR 6 bn
Offline travel agent: Online tour operator websites Tour operator Total EUR 6 bn brokerage Market Volume EUR 17 bn EUR 68 bn
Online service provider EUR 12 bn
Offline service provider
Source: DRV 2019 EUR 12 bn Our Support for Your Business in Germany
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