Domestic tourism is leading the sector’s recovery, with international visitor spending and employment numbers yet to recover.
LEIPZIG, Germany – The World Travel and Tourism Council’s (WTTC) 2024 Economic Impact Study (EIR) reveals that Germany’s travel and tourism sector will recover much slower than other major European destinations.
Data shows that domestic tourism is supporting Germany’s tourism industry, but spending on international trips remains below pre-pandemic levels.
Unlike many of its neighbors, Germany’s travel and tourism sector has yet to recover its contribution to GDP, the jobs lost during the pandemic, and the spending of international visitors.
According to the latest study by the international tourism organisation, the tourism sector’s contribution to Germany’s GDP will reach just over 453 billion euros in 2023, 13.5 billion euros below 2019 levels.
Travel and tourism employment increased 5% to 6.18 million, but is still about 250,000 fewer than in 2019.
Spending by international visitors fell by more than 25% last year compared to 2019, resulting in €14 billion less spent by international visitors in 2019.
However, domestic tourist spending is on track to fully recover in 2023, exceeding 2019 levels by €2.9 billion, proving that domestic travellers have been leading the way for the sector’s post-pandemic recovery.
“Germany’s travel and tourism industry is showing signs of recovery but there is still a long way to go and the recent air passenger tax increase will undoubtedly hinder the recovery. Domestic tourist spending has been strong, but the tax will only slow the recovery,” said Julia Simpson, WTTC Chairman and CEO. “The German government should be working with the travel and tourism industry to plan ways to encourage the return of international tourists, who are a key driver of the economy.”
What will this year hold?
While the sector’s overall GDP contribution is projected to recover in 2024, both employment and international visitor spending are expected to remain below 2019 levels.
The WTTC forecasts that travel and tourism will contribute around 469 billion euros to the German economy in 2024, 0.5% more than in 2019. Employment is forecast to increase by 160,000 this year, still 80,000 below the pre-pandemic high.
International tourist spending is expected to fall by around 10% compared to 2019, resulting in a deficit of €5.1 billion in 2024 compared to five years ago. However, domestic tourist spending is expected to continue growing slowly this year, increasing by 1.2% to reach around €411 billion.
What does the next decade hold?
The WTTC predicts that with the right government support, the sector’s annual GDP contribution could grow to around €554 billion by 2034, accounting for just over 12% of the German economy and employing around 6.5 million people nationwide.
This will only be possible if the government works together with the private sector to ensure that Germany remains an attractive destination for international tourists and can offer long-term employment to German residents.
Across the European Union
The EU travel and tourism sector is expected to grow by more than 8% in 2023 to reach €1.65 trillion, with employment exceeding 23.5 million, slightly above 2019 levels. International spending will increase by 11.5% to €471.5 billion, approaching pre-pandemic levels. Spending by domestic tourists will grow by nearly 5% to €963 billion, exceeding pre-pandemic levels.
WTTC predicts that travel and tourism in the region will continue to grow next year, with its contribution to GDP reaching nearly €1.75 trillion, employment is forecast to exceed 24.5 million, international tourist spending to reach €517 billion and domestic tourist spending to exceed €982 billion.
Vicky is co-founder and Editor-in-Chief of TravelDailyNews Media Network and is responsible for the day to day operations and financial direction. Vicky holds a BA in Tourism Business Management from the Technical University of Athens and an MBA from the University of Wales.
She has many years of academic and industrial experience in the travel industry and has written/edited numerous articles for various tourism magazines.
