Germany, which will host Euro 2024, is expecting a huge economic gain of $1 billion from international tourism, according to the Ifo Institute, the country’s leading economic research institute. That would amount to about 0.1% of Germany’s economic output in the second quarter. The hospitality and food retail sectors stand to benefit most from the influx of tourists to the soccer tournament, according to a study released by Ifo on June 14.
Ifo researcher Jerome Wolf stressed that while the economic boost during the tournament will be significant, the impact is expected to be short-lived as services exports will fall after the tournament as tourists return home.
The institute’s forecast is based on data from the 2006 FIFA World Cup, hosted by Germany, and predicts that the number of foreign tourists will increase by more than 600,000 during the tournament, resulting in an increase of 1.5 million overnight stays.
Also read: WEF releases top 10 countries for travel and tourism in 2024: Which country comes out on top?
Meanwhile, Germany’s Ministry of Economy predicted a temporary boom in consumer-oriented sectors after a slump in retail sales, although not on the scale of the 2006 World Cup.
According to Reuters, experts stressed that the overall economic performance of Europe’s largest economy will depend heavily on the performance of the German national team throughout the tournament.
On June 14th, the tournament’s hosts, Germany, won their opening match against Scotland 5-1. The German side couldn’t have asked for a better start.
Also read: UEFA Euro 2024 | Groups, Full Schedule, Venues, Times, Where to Watch Live in India
Germany had been eliminated from the previous three major tournaments and pre-tournament expectations were low, but they kicked off the championship with their biggest win in Euros history.
On the eve of the match, Germany reportedly welcomed police officers from across Europe to bolster defences against potential threats at the Euro 2024 football tournament, and Interior Minister Nancy Faser has promised increased vigilance ahead of the opening match after being briefed on potential terrorist threats.
Groups such as the Islamic State have already called for attacks during the month-long tournament, which began on June 14 (June 15 Indian time).
