Germany’s Travel and Tourism Industry Struggles to Rebound Amid Slow International Travel Spend
Germany’s travel and tourism industry is facing a slower rebound compared to other key European destinations, according to newly released data from the World Travel & Tourism Council (WTTC).
The WTTC’s 2024 Economic Impact Research (EIR) reveals that domestic tourism is playing a crucial role in propping up the sector in Germany, while international travel spend remains stubbornly low, still below pre-pandemic levels.
Despite some growth in travel and tourism-related employment levels, the sector has yet to fully recover its GDP contribution or the jobs lost during the pandemic. The WTTC reports that Germany’s travel and tourism sector contributed slightly over €453 billion ($491 billion) to the country’s GDP in 2023, which is €13.5 billion ($14.6 billion) below 2019 levels.
International visitor spending in Germany also remains significantly behind 2019 levels, with more than €14 billion ($15 billion) less being spent as of 2023. However, domestic tourism in Germany has shown strong growth, surpassing 2019 levels by €2.9 billion ($3.15 billion) in 2023.
Despite these positive signs, WTTC President & CEO Julia Simpson warns that the recent increase in airline passenger taxes could hinder the industry’s recovery. She emphasizes the importance of stimulating the return of international visitors to drive the economy forward.
Looking ahead to 2024, WTTC predicts a mixed outlook for Germany’s travel and tourism industry. While the overall GDP contribution is expected to recover, jobs and international visitor spending are projected to remain below 2019 levels. Domestic visitor spending, on the other hand, is forecasted to continue growing modestly.
As Germany navigates the challenges of post-pandemic recovery in its travel and tourism sector, collaboration between the government and industry stakeholders will be crucial in driving sustainable growth and attracting international visitors back to the country.