SHAPING THE FUTURE Destination Germany - Germany Travel

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SHAPING THE FUTURE Destination Germany - Germany Travel
2017

  SHAPING
  THE FUTURE     Destination Germany
GNTB ANNUAL REPORT
SHAPING THE FUTURE Destination Germany - Germany Travel
Contents

                                             A message from the Executive Board4

                                              message from Thomas Bareiß
                                             A
                                             Member of the German Parliament,
                                             Parliamentary State Secretary at the Federal Ministry for Economic
                                             Affairs and Energy, and Federal Government Commissioner for Tourism    6

                                          	
                                           A message from Brigitte Goertz-Meissner
                                           President of the GNTB Board of Directors                                 8

                                          	
                                           Interview with Petra Hedorfer
                                           Chief Executive Officer of the GNTB                                     10

                                          01 The German National Tourist Board14

                                             Inbound tourism today – Politicians                                   20

                                          02 Facts, figures and image24

                                             Inbound tourism today – Transport                                     36

                                          03 GNTB members, sponsors and partners40

                                             Inbound tourism today – Hotel industry                                50

                                          04 The GNTB’s sales and marketing strategy 54

                                             Inbound tourism today – Regional marketing organisations              68

                                          05 Theme-based marketing 76

                                             Inbound tourism today – Tourism partners                              94

                                          06 International marketing96

                                          07 Administration 126

                                             Organisation and structure                                            134

                                             Production credits                                                    141

Bavaria, Pinakothek der Moderne, Munich                                                                                   3
SHAPING THE FUTURE Destination Germany - Germany Travel
A MESSAGE FROM THE EXECUTIVE BOARD

Dear friends, colleagues and partners
of tourism in Germany,

       This report presents the results of another successful year for   In 2018, we will focus on our global ‘Culinary Germany’ cam-        supporter of our work. We now look forward to working with        A particular mention at this point goes to our committees –
       inbound tourism to Germany.                                       paign, where we will be shining a light on one of the lesser-­      her successor, Thomas Bareiß, Member of the German Parlia-        our members elected a new Board of Directors in 2017. Fol-
                                                                         known features of Destination Germany. As with all our              ment and new Parliamentary State Secretary and Commis-            lowing the election, the Board of Directors appointed Brigitte
       We were able to use the favourable conditions last year to        theme-based campaigns, we will be primarily using digital           sioner for Tourism.                                               Goertz-Meissner as its new chairperson. She succeeds Klaus
       benefit from the increase in travel in Europe and around the      communication channels.                                                                                                               Laepple, who has been at the helm for 15 years. The new vice
       world, and to achieve considerable growth.                                                                                            The board would also like to thank the members of the Tour-       presidents for the next term are Franz-Josef Pschierer, Bavari-
                                                                         Digitalisation is also playing a key role in the ongoing en-        ism Committee of the German Bundestag and the tourism             an Minister of State for Economic Affairs, Energy and Technol-
       All the key figures are positive: visitors from abroad made       hancement of our organisation. The growing use of digital           policy spokespersons of the parties.                              ogy, Peter Siemering, Vice President of the German Tourism
       almost 84 million overnight stays, a rise of 3.6 per cent com-    technologies is affecting all levels of the value chain in the                                                                        Association (DTV), and Guido Zöllick, President of the German
       pared to 2016, and the eighth record result in a row. Germany     tourism industry, and we are adapting our day-to-day work           The exceptional level of inbound tourism to Germany is the        Hotel and Restaurant Association (DEHOGA).
       remains the second most popular destination for Europeans         in response to these changes. The new industry players, such        result of excellent teamwork. The employees at the GNTB
       – after Spain and well ahead of France. We are the no. 1 des-     as online travel companies (OTCs), that are involved at various     headquarters in Frankfurt, in the foreign representative offic-
       tination for city breaks and cultural travel for European holi-   stages of the customer journey have been integrated into our        es and in the sales and marketing agencies around the world
       daymakers. Germany remains a top destination for business         digital strategy, as have our existing partners. The focus is the   have been pulling together to tackle the challenges that lie
       travel and is more popular than ever for holidays.                customer.                                                           ahead. We would like to take this opportunity to express our
                                                                                                                                             heartfelt thanks to all our staff for the dedication, hard work
       This is once again demonstrated by the strong positioning of      As in previous years, we were able to deliver our ongoing           and imagination they put into our activities.
       the Destination Germany brand in the global market.               global marketing projects and invest in our future with the                                                                           Petra Hedorfer
                                                                         reliable support of the Federal Ministry for Economic Affairs       We are also grateful to the members and sponsors that sup-        Chief Executive Officer
       Key to this are the core brand values of nature and culture.      and Energy (BMWi) as a provider of grants. The Executive            port our work through their contributions, whether financial
       In addition to the basic themes that we are continually pro-      Board of the GNTB would like to thank our partners at the           or otherwise.
       moting, we focused heavily on cultural tourism during 2017        BMWi for the constructive working relationship that we en-
       with our ‘Luther 2017 – 500 years since the Reformation’          joy with them. We would also like to thank Iris Gleicke, the
       campaign. We used Luther as a symbol of the Reformation in        Parliamentary State Secretary at the Federal Ministry for
       contemporary campaign elements in order to portray a mod-         Economic Affairs and Energy, and Federal Government Com-                                                                              Reinhard Werner
       ern image of Germany.                                             missioner for Tourism, who has been a tireless and reliable                                                                           Commercial Director

4    www.germany.travel                                                                                                                                                                                                                                                          5
SHAPING THE FUTURE Destination Germany - Germany Travel
A MESSAGE FROM THE FEDERAL GOVERNMENT COMMISSIONER FOR TOURISM

Dear readers,                                                                                                                                                                              Thomas Bareiß Member of the German Parliament
                                                                                                                                                                                           Parliamentary State Secretary at the Federal
                                                                                                                                                                                           Ministry for Economic Affairs and Energy and
                                                                                                                                                                                           Federal Government Commissioner for Tourism

       This publication shines a light on the     and in major overseas source markets.         government’s objective of strengthen-         cities, on stunning natural landscapes       BMWi, has become a firm fixture at the      cultures and engaging with other soci-
       work of the German National Tourist        It also enables us to strategically tap       ing rural regions as self-contained liv-      and on appealing and sustainable rec-        ITB and is an innovative platform for       eties and ways of living helps us to em-
       Board (GNTB), which has been a relia-      into the potential offered by dynamic,        ing spaces and economic zones, in par-        reational activities.                        dialogue between domestic and inter-        brace diversity and form relationships
       ble partner for the Federal Ministry for   fast-growing markets in Asia and South        ticular in terms of sustainability and                                                     national experts from tourism destina-      with people who are different to us.
       Economic Affairs and Energy (BMWi)         America to our long-term advantage.           future viability, while retaining their at-   The second theme is inclusivity. Ac-         tions, the tourism industry, disability
       for many years. The GNTB promotes                                                        tractiveness. Tourism can be an impor-        cessibility in tourism has now become        associations, politics and academia.        The 2006 football World Cup and
       Destination Germany around the             But the GNTB represents more than             tant driver of wages, employment and          firmly established in political discourse,                                               its accompanying slogan ‘A time to
       world on behalf of the BMWi and it is      just figures that we can count and            the maintenance of local infrastruc-          and a growing number of tourism ser-         The key themes of this year’s event,        make friends™’ set the high standard
       doing a magnificent job.                   measure. The work of the GNTB also            ture, especially in less well-developed       vice providers are aligning their busi-      which focused on barrier-free active        by which we are now judged, and by
                                                  conveys a positive and welcoming im-          rural areas.                                  ness with a greater commitment to            holidays and accessibility in the coun-     which we judge ourselves. A tolerant,
       In 2017, a new record was set for in-      age of Germany and has a significant                                                        inclusivity.                                 tryside, demonstrated that people with      cosmopolitan outlook is key to Destina-
       bound tourism to Germany, with vis-        influence on how we are perceived             Germany’s rural regions offer travellers                                                   disabilities are also interested in hol-    tion Germany’s success.
       itors from abroad making 83.9 mil-         abroad as a country and a society.            a wide range of products and have a           The GNTB is playing its part in pro-         idays involving nature, wellness and
       lion overnight stays. That is a rise of                                                  particular appeal that should be pro-         moting accessibility as a hallmark of        being active, and that this can be used     I hope you enjoy reading this report
       4 per cent compared to 2016, and the       One of the core messages of the GNTB          moted, in particular considering the          tourism in Germany around the world.         to promote tourism in entire areas, par-    and find it both entertaining and in-
       eighth annual increase in a row.           is that we receive our guests with            non-exportable jobs and vocational            This includes the partnership with the       ticularly in rural regions.                 formative.
                                                  openness and friendliness. This is re-        training opportunities in the hospitali-      Association of Barrier-free Destinations
       The money spent by international visi-     flected in the digital channels that the      ty industry that are supported by tour-       in Germany, whose member towns, cit-         A key component of this is the holistic
       tors underlines the importance of tour-    GNTB uses to address its target groups,       ism. One approach is the better inte-         ies and holiday regions are particularly     approach of the ‘Travel for all’ certifi-
       ism as an economic factor. According to    and in the way that the staff in its offic-   gration of cultural and travel offerings,     committed to the development of ac-          cation system funded by the BMWi. Its
       a study published by the BMWi in June      es abroad interact with their contacts.       and the BMWi project ‘The destination         cessible tourism in Germany.                 systematic expansion has made com-
       2017, tourism accounts for 4 per cent                                                    as the stage: how can cultural tourism                                                     prehensive and reliable information
       of the entire gross value added in Ger-    There is also the GNTB’s work on mat-         bring success to rural areas?’ is working     There is also the Barrier-free Tourism       available about accessible offerings
       many and for around one in 15 jobs.        ters relating to social policy and region-    towards this.                                 Day at the ITB international travel fair     along the entire tourism service chain.
                                                  al development. I would like to explore                                                     in Berlin, organised by the GNTB with
       The funds we receive from the feder-       two of these themes a little further.         Under the banner ‘Beyond the cities –         its long-standing partner, the Nation-       And finally, I would like to mention
       al government allow us to secure and                                                     holidays in the German countryside’,          al Coordination Board Tourism for All        the contribution that tourism makes
       extend our strong position as an at-       The first is the work on promoting tour-      the GNTB is focusing its marketing on         (NatKo), and now in its seventh year.        to fostering understanding between
       tractive tourism destination in Europe     ism in rural areas. This is based on the      cultural attractions outside the major        This event, which is supported by the        nations. Meeting people from other          Thomas Bareiß

6    www.germany.travel                                                                                                                                                                                                                                                           7
SHAPING THE FUTURE Destination Germany - Germany Travel
A MESSAGE FROM THE PRESIDENT OF THE BOARD OF DIRECTORS

Dear friends, colleagues and partners,
dear readers,
                                                  Brigitte Goertz-Meissner
                                                  President of the Board of Directors
                                                  of the German National Tourist Board

                                                                                                                                             Franz Josef Pschierer, Vice President     Peter Siemering, Vice President of the   Guido Zöllick, Vice President of the
                                                                                                                                             of the GNTB Board of Directors            GNTB Board of Directors                  GNTB Board of Directors
                                                                                                                                             Bavarian Minister of State for Economic   Vice President of the German Tourism     President of the German Hotel and
                                                                                                                                             Affairs, Energy and Technology            Association (DTV)                        Restaurant Association (DEHOGA)

       2017 was another good year for in-         But most of all, we once again man-            This is particularly the case in relation   In this respect, the GNTB relies on ac-             rent and new members of the Tourism                  al increase in funding will support the
       bound tourism to Germany.                  aged to showcase interesting facets of         to the digital revolution, which has        tive support from the tourism trade                 Committee for their support and co­                  GNTB in the long term.
                                                  Destination Germany and whet poten-            had an impact on the entire tourism         and from policymakers, in particular.               operation.
       Almost 84 million international over-      tial visitors’ appetite for a holiday in our   value chain. The GNTB has taken steps                                                                                                                We look forward to continuing our ex-
       night stays is an excellent figure, rep-   country.                                       in recent years to prepare the organi-      The political environment changed to                We firmly believe that the newly                     cellent working relationship with our
       resenting the eighth record result in                                                     sation for the challenges of the digital    some extent for the GNTB following                  formed Tourism Committee of the                      partners in Germany’s inbound tour-
       a row.                                     This shows how successful the work of          age. It has successfully developed and      the German federal election last au-                German Bundestag will continue its                   ism industry.
                                                  the GNTB has been. It has used innova-         implemented new marketing formats,          tumn.                                               commitment to creating a climate in
       This increase of nearly 4 per cent is      tive products and modern communi-              in particular for addressing end con-                                                           which foreigners will want to travel to
       even more impressive considering           cation methods to set new standards            sumers.                                     I would like to take this opportunity               Germany. Safety and a culture of being
       that it was achieved in a highly com-      in the global marketing of Destination                                                     to congratulate Thomas Bareiß, Parlia-              open and welcoming are essential to
       petitive market.                           Germany.                                       The Board of Directors supports the         mentary State Secretary at the Federal              the successful marketing of inbound
                                                                                                 activities through which the GNTB is        Ministry for Economic Affairs and Ener-             tourism.
       The conditions were a little more fa-      I congratulate Petra Hedorfer and her          driving forward its digital strategy. The   gy, on his appointment as Federal Gov-
       vourable than in the previous year, with   team for this excellent performance.           aim is to continue promoting a positive     ernment Commissioner for Tourism.                   The Board of Directors also believes
       political and economic stability in the                                                   image of Germany that will attract vis-                                                         that the GNTB requires a solid finan-
       source markets boosting consumption        The GNTB’s success is also based on the        itors and holidaymakers, even at a time     On behalf of the Board of Directors, I              cial basis in order to actively influence
       and the appetite for travel. And there     fact that it has never rested on its lau-      when communication methods are              would also like to thank the decision               changes in the tourism industry and to
       were no more major terrorist attacks in    rels; instead it has identified challenges     changing rapidly.                           makers at the Federal Ministry for Eco-             cement Destination Germany’s strong
       Germany.                                   early and faced them with vigour.                                                          nomic Affairs and Energy and the cur-               position in the global market. A gradu-              Brigitte Goertz-Meissner

8    www.germany.travel                                                                                                                                                                                                                                                                         9
SHAPING THE FUTURE Destination Germany - Germany Travel
INTERVIEW WITH PETRA HEDORFER

Petra Hedorfer                                                                                                                             to top hotels offering first-class service. Tourists visiting
                                                                                                                                           Germany can choose from public and personal transport
                                                                                                                                                                                                            This requires the end customer to be addressed directly.
                                                                                                                                                                                                                    What does the future hold for the travel trade?
       An interview with the Chief Executive Officer of the GNTB                                                                           options that are kind to the environment.
                                                                                                                                                                                                           The growing use of digital technologies has opened up en-
                                                                                                                                           And I would also mention that one third of Germany’s            tirely new channels of communication. The customer can
                                                                                                                                           land area is under special protection within a national         reach us directly online. Using the services of a profession-
Ms Hedorfer, 2017 was a good year for tourism                        more than just an economic sector. Travel connects peo-               park or nature park. These conservation areas are also          al travel agent is now optional. On the flip side, we can use
worldwide. How does Germany compare to the                           ple, opens up new horizons for travellers and fosters tol-            tightly regulated in terms of how they can be used.             social media to communicate directly with our customers,
benchmark?                                                           erance towards other cultures. Tourism can contribute to                                                                              get to know them, and target them more precisely.
                                                                     peaceful coexistence – this is a factor that is easily under-   So we have already reached the stage of perfection?
      We have seen further strong growth in inbound tourism          estimated, especially with many countries going it alone                                                                              The travel trade will continue to play an important role as
      to Germany, with record results for the eighth year run-       and becoming increasingly protectionist.                              There is still room for improvement, but the digital rev-       part of our B2B activities, but we have analysed in detail
      ning. The number of overnight stays made by interna-                                                                                 olution is providing us with more and more tools to             the impact and multiplier effects we are achieving with
      tional visitors is growing at a faster rate than the overall   We are well positioned to take advantage of this growth               achieve this. The aim is to analyse the specific local con-     our strategic partners.
      volume of overnight stays, our position as the leading Eu-     thanks to our attractiveness as a tourism destination, our            ditions and monitor and manage them accordingly.
      ropean business travel destination remains unchallenged        infrastructure, our cultural identity and our heritage, and                                                                                                     Will this result in new partnerships?
      and we are increasingly popular with holidaymakers. This       there are just as many good reasons to do so.                   Will there come a point where travel in Destination
      is excellent news indeed. Nevertheless, there are signifi-                                                                     Germany will be reduced to a virtual experience?                      In recent years, traditional travel companies along the en-
      cant challenges – competitors such as Spain and Italy                       But tourism also has its critics. Overtourism                                                                            tire value chain have taken stock of their portfolio of ser-
      are experiencing stronger growth than us, and France is                    was one of the buzzwords at this year’s ITB…              No. Travel relies heavily on sensual impressions and en-        vices and in some cases have redefined their roles.
      also growing after several weaker years. And many other                                                                              joying a personal experience of other cultures. You cannot
      countries are running considerable marketing drives in an      If many people want to visit a place or a region, it need             recreate that virtually, and we are not attempting to do so.    Furthermore, a number of heavyweight players have
      attempt to strengthen their position as attractive tourism     not necessarily lead to overtourism. It only becomes a                                                                                arrived in the market that do not offer travel services in
      destinations.                                                  problem if the infrastructure is unable to cope with the              But we can use our digital media and online marketing           the traditional sense, but are consolidating their position
                                                                     volume, if there are no means of controlling the stream               tools to strategically target potential visitors to Destina-    thanks to huge capital streams or the data available to
How do you view the future for inbound                               of tourists and if attractions have been insufficiently pro-          tion Germany, and we are already making good progress           them. With the advent of the platform economy, portals
tourism to Germany?                                                  tected from the effects of tourism marketing.                         with this. This has brought new possibilities for the man-      such as Google, Booking, Expedia and Airbnb have gained
                                                                                                                                           agement of visitor streams, and tour operators, airlines        a considerable share of the market.
      We are in a market that has excellent growth prospects.        In relation to most of these points we are already taking a           and hotels have already developed effective measures in
      Global tourism continues to expand, bringing wealth and        sustainable approach. We have an excellent range of plac-             this regard, for example by using pricing to extend sea-        Their success has many factors in common, such as
      prosperity to the countries visited. And tourism is much       es to stay, from budget accommodation for backpackers                 sons and balance seasonal fluctuations.                         data-­driven business models, high risk-affinity, rigorous

10   www.germany.travel                                                                                                                                                                                                                                                    11
SHAPING THE FUTURE Destination Germany - Germany Travel
INTERVIEW WITH PETRA HEDORFER

       testing, rapid implementation of ideas and maximum
       focus on the customer. That is to say, their day-to-day op-
       erations have been based on customer dialogue from the
       outset.

       And customers have adapted their behaviour to these
       digital services, be it while searching for holidays, during
       the booking process or while travelling. In short, online
       travel companies (OTCs) can use the knowledge they have
       of their customers to influence the customer journey at
       various stages.

       The value chain is becoming more complex, and we aim
       to be part of this. Under our traditional business model,
       we worked at one level with our members and partners,
       and at another with the end customer. But now we are
       working in a multidimensional space where we need to
       address and integrate several levels all at the same time.

Is this achievable with the GNTB’s traditional
business model?

       Over the past years, we have continually recalibrated our
       business model and have often found ourselves in the
       vanguard of the entire sector. We were one of the first to
       have an online presence and we were an early adopter
       of social media – experiences that we have been able to
       share. We were pioneers with our digitalisation strategy
                                                                        Saxony-Anhalt, masters’ houses by Walter Gropius near Dessau
       and with our introduction of innovations management.
       Working with many other players in German tourism, we
       have promoted Germany’s position as a sustainable trav-
       el destination and showcased our barrier-free credentials                                                                       Are there any specific examples?                                  the leading online travel platform, Ctrip, to develop our
       with certified offerings.                                                                                                                                                                         first fully integrated campaign.
                                                                      We use numerous global data sources to analyse our po-                 Yes, but we can only engage with these potential partners
       The digital revolution – including disruptive business         sition in the market, and one of our main tasks is to make             through new formats, such as our GNTB Knowledge Days.                               This leads us on to the topic of
       models, the platform economy, voice-control, chatbots          this knowledge even more transparent, to link it together              We are currently developing a two-day knowledge camp                        brand communication and cultivation…
       and artificial intelligence – represents a new challenge in    and to actively position it. By combining traditional market           with a range of workshops to be held this autumn, and we
       our everyday work.                                             research with strategies and analysis methods based on                 also offer regular themed webinars.                         Our starting position is excellent – according to the
                                                                      big data, we can support our members and partners in the                                                                           Nation Brands Index (NBI), Germany’s brand image is once
How will this manifest itself?                                        market with better insights and efficient marketing.                   This extends to new formats of brand communication, of      again ranked number one in a worldwide comparison of
                                                                                                                                             course. An example is our first multi-regional campaign     50 countries.
       We are developing our corporate strategy based on three        We have analysed the content, activities and campaigns of              with Expedia in the UK, Switzerland, Denmark and the
       areas of action: knowledge management for our members          more than 80 OTCs across 32 markets in relation to their               Netherlands.                                                                                 Major changes lie ahead.
       and partners in the German travel industry, relationship       offerings in Germany and in competitor countries. The                                                                                                      When is the process going to start?
       management with small and medium-sized tourism pro-            results of these analyses are then reflected in our market             In China, the GNTB and 13 of our partners, including the
       viders, and brand communication and cultivation. These         activities.                                                            German national rail operator Deutsche Bahn and the         The digital revolution won’t wait. We are already right in
       areas are all linked with one another in various ways.                                                                                Magic Cities marketing association, have teamed up with     the middle of it.

12   www.germany.travel                                                                                                                                                                                                                                               13
SHAPING THE FUTURE Destination Germany - Germany Travel
01

GLOBAL
The German National Tourist Board

PLAYER
The GNTB markets Destina-
tion Germany worldwide as
an attractive brand. Targeted
marketing provides the basis
for the long-term development
of the German inbound tour-
ism sector.

                                    Hessen, Schirn art gallery, Frankfurt
SHAPING THE FUTURE Destination Germany - Germany Travel
01 THE GERMAN NATIONAL TOURIST BOARD

       Strategic and professional
 marketing for
                                                                                  The digital revolution will dominate the GNTB’s future strategy

Destination Germany                                                                                                          Data-driven
                                                                                                                               business models
The German National Tourist Board (GNTB) has its headquarters in Frankfurt am                                                                                                    Brand
                                                                                           Relationship
Main, Germany. In accordance with its charter, the GNTB runs campaigns and                                                                                                   communication
                                                                                           management                           Platform economy
                                                                                                                                                                             and cultivation
activities that aim to enhance the positive image of German towns, cities and
regions abroad and promote travel to Germany.
                                                                                                                      Disruptive competition

                                                                                                                                       Knowledge
                                                                                                                                      management

                                         German
                                         National
                                       Tourist Board                            International marketing                      business travel. Destination Germany        consecutive record year for inbound
                                         Frankfurt am Main
                                                                                The GNTB works to promote Germa-             is globally positioned as an attractive     tourism to Germany.
                                                                                ny globally as a travel destination on       brand.
                                                                                behalf of the German federal govern-
                                                                                ment. Funding for the GNTB as an insti-                                                  Combining strengths
                                                                                tution is provided by the Federal Min-       Boosting SMEs                               The global marketing of Destination
                                                                                istry for Economic Affairs and Energy        The GNTB aims to enhance the capac-         Germany is underpinned by the co-
                                                                                (BMWi) in accordance with a resolution       ities and competitiveness of the tour-      operation between the GNTB and
     Global marketing via
              12 foreign representative offices
                                                                                passed by the German parliament.             ism industry – which predominantly          its 70 members and 16 sponsors,
                                                                                                                             consists of small and medium-sized          which include companies in the tour-

     20 sales and marketing agencies
                                                                                The total budget made available to the       enterprises – to secure jobs in the sec-    ism industry, associations and all the
                                                                                GNTB in 2017 came to €39.5 million.          tor and to boost the economies of less      marketing organisations of the federal

                                 50 markets
                                                                                This comprised government grants,            well-developed rural regions through        states. Within the scope of its strate-
                                                                                contributions from members and funds         the promotion of tourism.                   gic theme-based marketing, the GNTB
                                             in over                            generated by commercial activities. A to-                                                is continually expanding its inbound
                                                                                tal of €25.0 million of the overall budget   The yardstick for its success is the vol-   tourism network to include new part-
                                                                                was spent on marketing activities.           ume of overnight stays made by visi-        ners.
                                                                                                                             tors from other countries. In 2017, this
                                                                                The GNTB markets Germany as a des-           number reached almost 84 million for
                                                                                tination for both holiday tourism and        the first time. It was also the eighth

16    www.germany.travel                                                                                                                                                                                           17
SHAPING THE FUTURE Destination Germany - Germany Travel
01 THE GERMAN NATIONAL TOURIST BOARD

The GNTB’s mid-term
  and long-term objectives
and tasks
       A key objective of the German government’s tourism policy is to create an
       environment where tourism in Germany, one of the major growth sectors of
       the 21st century, and the German tourism industry can thrive. For the Federal
       Ministry for Economic Affairs and Energy (BMWi), which is responsible for the                                                     Berlin, government quarter

       government’s tourism policy, promoting Germany as a travel destination in
       other countries is an important tool in achieving this objective.

       The BMWi has tasked the German Na-         and expand jobs and training oppor-         The GNTB’s qualitative tasks support       ism based on the GNTB’s market re-         gions. The GNTB analyses and assesses        Institute and organisations in the
       tional Tourist Board (GNTB) with pro-      tunities in tourism, and to boost the       key pillars of the government’s tourism    search. The annual themes and specific     current developments and medium- to          worldwide network of German cham-
       moting Destination Germany around          economies of underdeveloped regions         policy, which is concerned with the pos-   theme-based campaigns are decided          long-term trends in travel behaviour         bers of commerce, delegate offices and
       the world. The GNTB works closely with     as a means of maintaining and improv-       itive effects tourism can have on local    in agreement with the Federal Ministry     and the targeting of its intended au-        agencies.
       the BMWi and uses the federal funds        ing local infrastructures.                  communities and infrastructure. They       for Economic Affairs and Energy.           dience through its marketing. Such
       provided to fulfil the specific targets                                                also promote the recognition of tour-                                                 developments include the influence of
       and tasks for each year.                   Another reason why the federal gov-         ism as an economic and image factor,       The product lines ‘city breaks and cul-    digitalisation, the importance of trade      Performance monitoring
                                                  ernment is keen to promote inbound          support SMEs, help to develop sustain-     tural tourism’, ‘business travel’ and      fairs, workshops and roadshows, the          The GNTB’s activities are audited an-
       The funding of the GNTB, a registered      tourism to Germany is the growth            able tourism, and allow everyone to        ‘health & fitness holidays’ are to be      use of social media and the direct or        nually to ensure that it uses public
       association with 32 offices and agen-      stimulus that tourism provides to oth-      be included in tourism, particularly in    promoted effectively, while tourism to     indirect communication with end cus-         funds effectively, economically and for
       cies worldwide, is based on a decision     er areas of the economy, such as trans-     terms of accessibility.                    rural areas, in particular, will provide   tomers.                                      the purposes of fulfilling its remit. This
       by the German Bundestag.                   portation, retail and skilled trades. All                                              an additional focus. In this context,                                                   includes an evaluation of the GNTB’s
                                                  along the value chain, tourism offers       The GNTB carries out extensive mar-        the GNTB is also tasked with increas-                                                   foreign representative offices – an idea
                                                  further opportunities for small and         ket research to ensure that it makes       ing awareness of less well-frequent-       Committee work and                           developed in consultation with the
       Objectives and tasks assigned              medium-sized enterprises. The tasks         the best and most cost-effective use       ed tourism regions. In doing so, it also   partnerships with German                     Federal Ministry for Economic Affairs
       to the German National Tour-               and objectives that the BMWi sets to        of the public funds that it is provided    considers collaboration opportunities      institutions abroad                          and Energy – and the analysis of how
       ist Board (GNTB) for 2018                  promote inbound tourism to Germa-           with. The results provide the basis for    with organisations whose target groups     The GNTB works with committees               suitable the marketing activities for
       Overnight stays and the money spent        ny as part of its institutional funding     all non-domestic marketing activities,     mainly spend their holidays in rural and   at home and abroad with the aim of           Destination Germany have been over-
       by foreign guests are a major factor       of the GNTB, are of both a quantitative     both with regards to the sales channels    unspoilt destinations.                     improving national and international         all and whether they have influenced
       behind the importance of tourism in        and a qualitative nature.                   selected and to the economic potential                                                collaboration. It ensures that its work is   travel decisions.
       Germany to the overall economy. The                                                    and growth prospects in current and                                                   targeted, cost-effective and compatible
       tourism industry, which is heavily dom-    Examples of quantitative tasks include      future source markets.                     Marketing tools                            with its marketing remit.
       inated by small and medium-sized en-       increasing the number of overnight                                                     The GNTB bases its marketing of Des-
       terprises, contributes around 4 per cent   stays by foreign visitors and boosting                                                 tination Germany on themes, and            The GNTB’s foreign representative of-
       to the gross value added and accounts      their spending during their stay, and,      Marketing themes                           also develops innovative ideas and the     fices identify opportunities to collabo-
       for one in every 15 jobs in Germany. It    as a benchmark target, achieving a          In 2018, the focus is primarily on ‘Cu-    appropriate tools to deliver them. This    rate with German institutions abroad,
       is therefore very much in the interests    growth rate above that of the five lead-    linary Germany’, and future topics will    clearly distinguishes it from the desti-   in particular the embassies and con-
       of the federal government to increase      ing European competitors.                   continue to be chosen to align with the    nation-focused marketing activities of     sulates, the representative offices of
       Germany’s tourism appeal, to secure                                                    potential worldwide demand for tour-       the federal states and the tourism re-     Germany Trade & Invest, the Goethe

18   www.germany.travel                                                                                                                                                                                                                                                       19
INBOUND TOURISM TODAY – POLITICIANS         INBOUND TOURISM TODAY – POLITICIANS

                                                The spokespersons of the
                                            political parties on the Tourism
                                                 Committee of the
                                            German Bundestag
                                            The GNTB is supported on the basis of a decision by the German Bundestag.
                                            The Tourism Committee raises public awareness for the economic significance of
                                            tourism through its initiatives, queries and hearings. Representing a cross-section of
                                            parties, it deals with a wide range of tourism policy issues, which include the environ-
                                            ment and nature conservation, transport and digital infrastructure, work and society,
                                            health and finance. The members of the committee support the work of the GNTB by
                                            setting the agenda for tourism policy and in doing so, they champion the cause of the
                                            German tourism industry.

                                                                                           What are and will be the cornerstones of the inbound
                                                                                           tourism industry for this new legislative period?

                                                                                        to the great efforts of the tourism in-   businesses are charged for providing
                                                                                        dustry. The government’s tourism poli-    accommodation.
                                                                                        cy needs to create an environment that
                                                                                        is conducive to further growth.           Unless we rectify this anomaly soon,
                                                                                                                                  we will be faced with an avalanche of
                                                                                        Through our public funding of the         bankruptcies in the travel trade. Com-
                                                                                        GNTB we aim to ensure that our coun-      panies that are unable to move their
                                                                                        try will continue to be perceived fa-     registered office aboard will fall by the
                                            Sebastian Münzenmaier Member                vourably abroad.                          wayside. That is why the Bundestag
                                            of the German Parliament, AfD, Chair-                                                 needs to intervene and use legislation
                                            man of the Tourism Committee of the         Under no circumstances can we allow       to rein in the tax authorities. For the
                                            German Bundestag                            the levying of trade tax to make travel   sake of holidaymakers and small busi-
                                                                                        more expensive and throttle inbound       nesses.
                                            Germany can look back on excellent          tourism. We find ourselves in the im-
                                            figures for overnight stays over the past   possible position where businesses are    “Germany can look back on
                                            eight years, and holidaying here is be-     not charged trade tax on space they       excellent figures for overnight
                                            coming increasingly attractive thanks       use for storing their goods, but other    stays over the past eight years.”

Hamburg, Speicherstadt warehouse district                                                                                                                                     21
INBOUND TOURISM TODAY – POLITICIANS

                                                    Last year, inbound tourism to Germa-         “We are joining forces with
                                                    ny was boosted by the 500th anniver-         the industry in an initiative to
                                                    sary of the Reformation, in particular.      counter the lack of skilled work-
                                                    Many regions that are not considered         ers, especially in the hospitality
                                                    traditional travel destinations recorded     sector.”
                                                    increasing visitor numbers. We hope
                                                                                                                                                                                                                                        GNTB parliamentary breakfast at the 2018 ITB
                                                    that these destinations will continue to
                                                    benefit from the past year in the long
       Paul Lehrieder Member of the                 term. For the new legislative period, the                                                  “For me, one of the most pressing issues for the inbound tourism
       German Parliament, Spokesperson on           coalition has agreed to focus particu-                                                     industry remains the lack of skilled workers and the difficulty in
       Tourism Policy for the CDU/CSU               larly on the issues of accessibility and                                                   attracting young talent.”

       “We are already making good progress when it comes to                                                                                   For me, one of the most pressing issues for the inbound tourism industry remains
       accessible travel.”                                                                                                                     the lack of skilled workers and the difficulty in attracting young talent. Surveys and
                                                                                                 Gabriele Hiller-Ohm Member of                 statistics show that even now many businesses in the restaurant trade are unable
       the lack of skilled workers. Apart from the question of attracting enough skilled         the German Parliament, Spokesperson           to maintain normal opening hours because they do not have enough staff. One solu-
       workers, there is also the matter of making existing job profiles in tourism more         on Tourism Policy for the SPD                 tion could be to expand the government’s whitelist for immigration into recognised       Kerstin Kassner Member of the
       attractive and developing them further. The most recent job profile report shows                                                        occupations to include the hotel and restaurant industry, so that non-EU citizens are    German Parliament, Spokesperson on
       that too many young people break off their vocational apprenticeship early. This          The SPD wants to bolster tourism in           able to fill the gap.                                                                    Tourism Policy for DIE LINKE
       has to change. We are already making good progress when it comes to accessible            Germany for the long term and further
       travel, but we cannot rest on our laurels. We will work closely with the associations     improve the conditions in which the           Visas are another familiar, but still highly topical, problem. The German authorities simply take too long to process and approve
       and the tourism industry to make this one of our key areas of focus.                      industry operates. That is why we will        visa applications from Asia, for example from China and South Korea. Potential tourists are therefore more likely to visit neigh-
                                                                                                 work with federal states and local au-        bouring countries, and the German tourism industry is losing out on around 500,000 overnight stays every year. The result is
                                                                                                 thorities, within the scope of the coali-     fewer available jobs – not to mention the lost revenue.
                                                                                                 tion agreement, to develop a national
       “We want to get more young                                                                tourism strategy. In order to maintain        I also think there is a problem with the support that the GNTB receives. Although it is well funded by the federal government, I
       people with qualifications in-                                                            the encouraging growth in visitor num-        believe there is a lack of support when it comes to finding solutions, for example regarding visa requirements. I hope to see even
       terested in Germany as a travel                                                           bers from abroad, we will continue to         more support going forward, including behind closed doors.
       destination, and hopefully also                                                           provide a high level of funding for the
       as a place to work.”                                                                      GNTB’s work in promoting Germany as
                                                                                                 a cosmopolitan and welcoming travel
       The number of overnight stays made in                                                     destination. We are joining forces with                                                    “Our tourism policy will need to address a number of
       Germany has increased for eight years                                                     the industry in an initiative to counter                                                   challenges to ensure that this positive trend for Destination
       in succession, and this shows how suc-       Dr Marcel Klinge Member of the               the lack of skilled workers, especially in                                                 Germany continues.”
       cessful the work of the GNTB has been.       German Parliament, Spokesperson on           the hospitality sector. Accessible tour-
       We want to get more young people             Tourism Policy for the FDP                   ism is growing in importance, and that                                                     tion is down to the hard work of many       to the effects of climate change. Over
       with qualifications interested in Ger-                                                    is why we are supporting the ‘Travel for                                                   people, particularly at the GNTB. In the    the course of this legislative period,
       many as a travel destination, and hopefully                                               all’ certification system, in the hope that                                                new legislative period, our tourism pol-    the legal framework for the sector will
       also as a place to work. For example, by offering them the option of coming here on       even more companies will participate.                                                      icy will need to address a number of        change, for example in terms of data
       a working holiday. The infrastructure and the tools are all in place, we just need to     The funding instruments of the EU and         Markus Tressel Member of the                 challenges to ensure that this positive     protection, consumer protection and
       use them better. This also applies to digitalisation, currently the biggest challenge     the federal and regional governments          German Parliament, Spokesperson              trend for Destination Germany con-          tax law. Tourism policymakers will need
       for inbound tourism. The digital revolution has rapidly changed the way many cus-         need to be better integrated, and should      on Tourism Policy for Bündnis 90 /           tinues. These challenges include the        to manage these processes closely and
       tomers make their bookings. It is possible, for example, to book a trip with just a few   also have a greater focus on the develop-     DIE GRÜNEN                                   digitalisation of travel, establishing an   assess their impact. Where necessary,
       words to a voice-controlled digital assistant. The expectations of potential visitors     ment of tourism in rural areas.                                                            adequate pool of skilled workers, devel-    they will need to speed up the progress
       are also growing – they want to be able to virtually explore their chosen destination                                                   Inbound tourism to Germany has been          oping new transport solutions at and        of readjustments to ensure fair compe-
       in advance and plan their stay. But the ‘analogue’ infrastructure also has to be right,                                                 breaking one record after another for        between holiday destinations, boost-        tition and a clear and consistent legal
       and there are considerable investment backlogs, particularly in rural areas, that we                                                    several years now, and this strong posi-     ing tourism in rural areas and adapting     framework for the travel trade.
       aim to tackle.

22   www.germany.travel                                                                                                                                                                                                                                                                23
02

FURTHER
Facts, figures and image

GROWTH
Inbound tourism to Germany
continued to grow in 2017.
Purpose-built infrastructure,
an excellent image and target-
ed marketing put us in a posi-
tion to benefit from the long-
term growth trend in global
tourism.

                                 Bavaria, Lake Eibsee near Garmisch-Partenkirchen
02 FACTS, FIGURES AND IMAGE                                                                                                            GERMANY AND THE INTERNATIONAL COMPETITION

Inbound travel to Germany                                                                                                              Top position for Germany:

8th record year                                                                                                                        the second-most popular destination for Europeans

                                                               in a row                                                                                                                              2nd
                                                                                                                                                                                                                                            SPAIN
                                                                                                                                                                                                                                            67.0 million
                                                                                                                                                                                                                                            trips in 2017
          Inbound tourism to Germany gained even more momentum in 2017. The                                                                                                                                                                 2016 / 17 + 8.0 %

          number of international overnight stays increased by 3.6 per cent, a rate of
          growth that was almost three times as high as in the previous year. Positive                                                                                                                                                      GERMANY
          economic data, political stability in important source markets and the                                                                                                3rd                                                         56.2 million
          excellent positioning of the Destination Germany brand in the international                                                                                                                                                       trips in 2017
                                                                                                                                                                                                                                            2016 / 17 + 5.0 %
          market all contributed to this strong showing.
                                                                                                                                                                                                                                            FRANCE

                                                                                                         Source: GNTB/WTM, IPK 2018.
     Almost 84 million overnight stays:                                                                                                                        1st                                                                          41.0 million
     Germany’s inbound tourism con-
                                                                                                                                                                                                                                            trips in 2017
     tinues its strong growth                                                                                                                                                                                                               2016 / 17 + 9.0 %
     International visitors accounted for
     18.3 per cent of all overnight stays in Ger-
     many, a small increase on the previous year.
                                                                                                                                       Global tourism: highest increase for seven years                                         Growing demand
                                                                                                                                       The United Nations World Tourism Organization registered growth of 6.8 per cent          from Europeans
                                                                                                                                       to 1.32 billion arrivals worldwide in 2017. This record figure is based on a continual   In most European countries, consumer
                                                                                                                                       upward trend: since 2010, the number of arrivals has grown by at least 4 per cent        spending increased and the appetite
                                                                                                                                       every year.                                                                              for travel received a boost in 2017, and
                                                                                                                                                                                                                                Germany has been able to benefit from
                                                                                                                                       Europe is again cementing its position as the leading destination for interna-           this immensely in some countries.
                                                                                                                                       tional travel – driven by the Mediterranean countries in particular – with a rise        According to IPK International, out-
                                                                                                                                       of around 8.4 per cent. The Asia-Pacific region, where inbound travel was up by          bound travel from Austria increased by
                                                                                                                                       5.9 per cent, saw slightly weaker growth compared to 2016, as did the Americas           4 per cent overall, with trips to neigh-
                                                                                                                                       with 3.2 per cent. The Middle East managed a considerable turnaround from a              bouring Germany rising by 8 per cent.
                                                                                                                                       drop of 4.3 per cent to a plus of 4.4 per cent. Africa also continued its upward trend   In the growth market of Romania,
                                                                                                                                       with a rise of 9.0 per cent – albeit from a much smaller market (source: UNWTO,          12 per cent more international trips
                                                                                                                                       Mar / Apr 2018).                                                                         were made in 2017, with trips to Ger-
                                                                                                                                                                                                                                many up by 19 per cent. And in Croatia,
                                                                                                                                       According to the UNWTO, the global economic upturn and robust demand from                outbound travel increased by 8 per cent
                                                                                                                                       established and emerging source markets, such as Brazil and Russia, are the rea-         overall, with 12 per cent more Croatian
                                                                                                                                       sons behind this.                                                                        travellers making a trip to Germany.

                                      million international                                                                            Tourism is a proven growth sector
                                     overnight stays in 2017                                                                           According to the World Travel Monitor (WTM),
                                   +   3.6 % (2016 / 17)                      North Rhine-Westphalia,                                  the average spend per person per outbound trip rose by per cent worldwide in                6
                                                                              UNESCO World Heritage
                                                                              Zollverein Mine in Essen
                                                                                                                                       2017 to reach €916, while global tourism revenues increased by   per cent.                                12
26      www.germany.travel                                                                                                                                                                                                                                                 27
02 SOURCE MARKETS FOR INBOUND TRAVEL TO GERMANY

Almost          three quarters                                                                                                                                                                                                                                 The   growth drivers in 2017                                                                 RUSSIA

of all international overnight stays                                                                                                                                                                                                                                                                                                                        + 302,532
                                                                                                                                                                                                                                                                                                                                                            overnight stays
in Germany were made by visitors                                                                                                                                                                                                                                                 USA

                                                  61.3
                                                  EUROPE
                                                                                                                                                                                                                                                                                 + 505,226
   other European
from                                                                                                                                                                                                                                                                             overnight stays

countries                                         million overnight stays                                                                                                                                                                                                                                                                                  CHINA/HONG KONG

                                                                                                                                                                                                                                                                                                                                                           + 273,962
                                                              2.6 %
                                                                                                                                                                                                                                                                                                              EUROPE
                                                  2016/17 +                                                                                                                                                                                                    North America, Eastern Europe                  Poland
                                                                                                                                                                                                                                                                                                                                                           overnight stays

                                                                                                                                                                                                                                                               and Asia provide a boost                       + 274,843 overnight stays
                                                                                                                                                                                                                                                               In 2017, six markets accounted
                                                                                                                                                                                                                                                                                                              Austria
                                                                                                                                                                                                                                                               for 60 per cent of the year-on-
                                                                                                                                                                                                                                                               year increase of almost three                  + 241,002 overnight stays
                                                                                                                                                                                                                                                               million overnight stays.                       Romania

                                                                                                                                                                                                                                                                                                              + 164,139 overnight stays

                                                                                                                                                               Source: Federal Statistical Office 2018, statistics for accommodation with at least ten beds.
                                                                                                                                                                                                                                                                Netherlands                                                                        11.2 million OS 13.4% MS
                                                                                                                                                                                                                                                                Switzerland                           6.7 million OS 8.0% MS
                                                                                                                                                                                                                                                                USA                              6.2 million OS 7.4% MS
                                                                                                                                                                                                                                                                United Kingdom                5.6 million OS 6.7% MS

20.9
OVERSEAS                                                                                                                                                                                                                                                        Austria         4.0 million OS 4.8% MS
                                                                                                                                                                                                                                                                Italy          3.7 million OS 4.4% MS             The
                                                                            Source: Federal Statistical Office 2018, accommodation statistics incl. camping;

                                                                                                                                                               OS = overnight stays, MS = market share
million overnight stays
                                                                                                                                                                                                                                                                France       3.5 million OS 4.2% MS              top ten source markets
                                                                                                                                                                                                                                                                                                                              at a glance
                                                                                                                                                                                                                                                                Denmark 3.3 million OS 3.9 % MS
                                                                            *incl. around 160,000 overnight stays from unspecified countries.

2016/17 +            6.8 %
                                                                                                                                                                                                                                                                Belgium 3.1 million OS 3.7 % MS
The overseas markets
                                                                                                                                                                                                                                                                Poland 2.9 million OS 3.5 % MS
are growing faster.

                                                                                                                                                                                                                                                                  BRIC countries achieve double-digit growth

                                                                                                                                                                                                                                                                  Brazil +   14.0%                 Russia +   20.3%            India +   13.8%            China +   10.6%
                                                                                                                                                                                                                                                                  764,223 overnight stays          1,792,837 overnight stays   852,224 overnight stays    2,858,513 overnight stays
 Hamburg, trade fair tower

28     www.germany.travel                                                                                                                                                                                                                                                                                                                                                         29
02 DESTINATION GERMANY: MOST POPULAR PLACES AND SIGHTS

10                                                                                                                                                                                                                                                                                                   Cultural holidays account for a

                                                                                                                                                                                                                                                                                                     60%
27%
                    Magic Cities
                                                                                                                                                                                                                                                                                                                              share of the market
                          of inbound tourism

Hessen, Frankfurt

Growth in           cities and non-city states                                                                                                                                                                                                                                        19 % 18.3 %
           Cities and urban centres remained the growth engine for inbound tourism in 2017. According to the Federal Statistical Office,
                                                                                                                                                                                                                                             16 %
           cities (more than 100,000 inhabitants) saw an increase in international overnight stays of 4.4 per cent compared to the pre-
           vious year, while small and medium-sized towns saw a rise of 3.9 per cent and rural towns and villages (fewer than 10,000
                                                                                                                                                                                                                                                      15.1 %                                                        The split of
           inhabitants) 0.8 per cent.

                                                        Inbound tourism by federal state
                                                                                                                                                                                                                                                                                                  17 %              inbound tourism
                                                                                                                                                                                                                                                                                                                    is almost equal between the

                                                                                                                                                                                      Source: Federal Statistical Office 2017.
           The leading city state was Hamburg
           with an increase of 5.1 per cent to                                          Int. overnight stays    Change compared to
                                                                                              (million)               2016                                                                                                                               12 %                                                       federal states in the east and
           3.4 million international overnight
           stays. The majority of the Magic Cit-
                                                                                                                        (%)                                                                                                                                                                                         the west.
           ies were able to maintain the strong         Bavaria                                19.1                     + 8.3
                                                                                                                                                                                                                                                        Share of                                  Share of
           growth of previous years. Munich (up         Berlin                                 14.0                     - 1.4                                                                                                                        international                             international           Federal states in the west
           14.7 per cent), Cologne (up 9.2 per cent),                                                                                                                                                                                               overnight stays                           overnight stays          Germany in total
                                                        Baden-Württemberg                      11.4                     + 1.7
           Leipzig (up 14.7 per cent) and Nurem-                                                                                                                                                                                                                                                                       Federal states in the east (incl. Berlin)
           berg (up 8.4 per cent) all experienced       North Rhine-Westphalia                 11.0                     + 5.5                                                                                                                  2007                                     2017
           exceptional increases.                       Hessen                                 7.7                      + 5.4

           The capital, Berlin, ended 2017 on a
                                                        Rhineland-Palatinate                   5.2                      - 0.9
                                                                                                                                                                                                                                 Number 1                                    In 2017, European visitors to Germany made
           minus after a long boom period since
           German reunification with a modest
                                                        Lower Saxony

                                                        Hamburg
                                                                                               3.8

                                                                                               3.4
                                                                                                                        + 2.0

                                                                                                                        + 5.1                                                                                                    city break                                  2.1 million rural holiday trips,
           drop of 1.4 per cent to 14 million inter-    Saxony                                 2.1                      + 8.8                                                                                                    destination                                 a share of 7 per cent of all holiday travel to Germany
           national overnight stays.
                                                        Schleswig-Holstein                     2.0                      + 3.5                                                                                                    for Europeans                               from Europe.
                                                                                                                                           Source: Federal Statistical Office 2018.

                                                        Mecklenburg-Western                    1.0                      - 3.5
           Of the non-city states, Saxony-An-                                                                                                                                                                                    This is also reflective of where German     In accordance with the objective set by the federal government, the GNTB is con-
                                                        Pomerania
           halt (up 14.1 per cent), Saxony (up                                                                                                                                                                                   cities stand in the European travel mar-    tinuing to promote tourism in rural regions. The overarching initiative ‘Beyond the
           8.8 per cent), Bavaria (up 8.3 per cent),    Brandenburg                            1.0                      - 0.8                                                                                                    ket. Germany is the only country with       cities – holidays in the German countryside’ is being supported by campaigns such
           Thuringia (up 7.1 per cent), North           Thuringia                              0.6                      + 7.1                                                                                                    four entries in the top 25 cities by vol-   as ‘Culinary Germany’. The main source markets for rural holidays are the Nether-
           Rhine-Westphalia (up 5.5 per cent)                                                                                                                                                                                    ume of international overnight stays:       lands, Switzerland and France.
                                                        Saxony-Anhalt                          0.6                      + 14.1
           and Hessen (up 5.4 per cent) all made                                                                                                                                                                                 Berlin ranks number six, followed by
           above-average contributions to total         Bremen                                 0.5                      + 1.7                                                                                                    Munich at 13, Frankfurt at 21 and
           inbound tourism to Germany.                  Saarland                               0.5                      - 1.1                                                                                                    Hamburg at 23.

30      www.germany.travel                                                                                                                                                                                                                                                                                                                                         31
02 TRAVEL SEGMENTS AND THE ECONOMY

Inbound tourism makes an above-average
   contribution to the economic value creation process                                                                                                                                                                                 Wolfgang Bauer,
                                                                                                                                                                                                                                                                                             In 2017, shopping tourism made an-
                                                                                                                                                                                                                                                                                             other important contribution to the
         In its latest analysis of tourism as an economic factor, DIW           The tourism industry provides three million direct, non-ex-                                                                                            Managing Director of Holy AG                          economic value creation of inbound
         econ, the German Institute for Economic Research, report-              portable jobs in Germany.                                                                                                                                                                                    tourism. Total retail revenue generated
         ed that domestic and international visitors on day trips and                                                                                                                                                                  2017 was another record year for Outletcity           by tourism fell by nearly 8 per cent last
         longer stays in Germany spent a total of €287.2 billion in             Travel expenditure of international guests has been rising                                                                                             Metzingen. Contrary to many forecasts, we             year to €1.52 billion due to the prevail-
         2017. Guests staying overnight accounted for almost half               steadily. In 2017, Europeans visiting Germany spent €35.1 bil-                                                                                         again welcomed a lot of visitors from our main        ing situation in key shopping tourism
         (€137.7 billion) of this figure, and almost 30 per cent was at-        lion, 9 per cent more than in 2016. The increase in expenditure                                                                                        source markets in China, South Korea, Switzer-        source markets. Nevertheless, with its
         tributable to travellers from abroad (€36.8 billion).                  by travellers from overseas was even higher, at 16 per cent. In                                                                                        land, Russia, France and the Arab Gulf States.        8.7 per cent market share, Germany
                                                                                total, they spent €23.6 billion. This includes all expenditure                                                                                         We saw a considerable increase in visitors from       claimed sixth place in a ranking of the
         Tourism’s direct contribution to overall economic value crea-          for transport, accommodation, food and shopping etc.                                                                   Russia, and South Korea exceeded all our expectations.                                world’s shopping destinations.
         tion was €105.3 billion (3.9 per cent), placing it above indus-        while staying in Germany, as well as travel to, from and within
         tries such as engineering (3.5 per cent) and retail (3.3 per cent).    Germany.                                                                                                               The challenge we face is to reach a large and discerning group of people who          Germany
                                                                                                                                                                                                       live far beyond our country’s borders, using targeted communications that             remains a popular

Germany is the leading destination for business travel in Europe
                                                                                                                                                                                                       won’t break the bank. Our task is to reach out as far as possible without losing
                                                                                                                                                                                                       focus. We believe that our local activities in the source markets present excel-      shopping
All trips to Germany from the rest of
                                                                                                                            According to IPK International and the
                                                                                                                                                                                                       lent opportunities, and we are increasing our efforts to support these activities
                                                                                                                                                                                                       at press conferences, on social media and through our presence at trade fairs.        destination
                                                                                                                            World Travel Monitor, Europeans made                                       Online partnerships, influencer marketing and radio advertising have all been
Europe in 2017: 56.2 million (+ 5 %)                                                                                        around 64 million outbound business                                        stepped up, and our collaboration with specialists and local agencies helps us        The Chinese remained the highest
                                                                      Holidays                                              trips in 2017, 1 per cent more than in                                     to publicise information directly and efficiently.                                    spenders in Germany in 2017, and de-
Other private trips
11.7           million
                                                                      31.6            million
                                                                                                                            2016. This trend was also reflected in the
                                                                                                                            German business travel market, where                                       We are therefore eagerly looking forward to an exciting 2018.
                                                                                                                                                                                                                                                                                             spite a sharp decline in the revenue
                                                                                                                                                                                                                                                                                             they generated, they retained a market
                                                                                2016 / 17 + 6.5 %
                                                                                                                            the number of trips rose slightly from                                                                                                                           share of 36 per cent. Russian travellers

                                   21 %
2016 / 17 + 4.9 %
                                                                                                                            12.7 million to 12.9 million. The overall                                                                                                                        stayed in second place with a market
                                                                                                                            rankings remain unchanged: Germany                                                                                                                               share of 12 per cent, followed by Swit-
                                                                                                                            is still number one, well ahead of France                                                                                                                        zerland, the United Arab Emirates, Tai-

                                                        56 %                                                                (4.8 million trips) and the United King-                                   The source markets generating the most revenue                                        wan, Israel, the USA, Kuwait, Thailand

                                23 %
                                                                                              Source: GNTB/WTM, IPK 2018,

                                                                                                                            dom (4.7 million). Promotable business                                                                    Travel expenditure           Change compared           and South Korea.
                                                                                                                            trips still account for more than half of                                                                     (€ billion)                 to 2016 (%)
                                                                                              figures are rounded.

                                                                                                                            the market (52 per cent). A 0.2 per cent                                                                                                                         Munich, Frankfurt and Berlin are still
Business trips                                                                                                              increase in visitors to conferences and
                                                                                                                                                                                                        USA                                   6.3                         + 11.0
                                                                                                                                                                                                                                                                                             the most popular destinations for in-

12.9           million                                                Market share                                          conventions (to 4.0 million in 2017)
                                                                                                                            compensated for the downturn in the
                                                                                                                                                                                                        China                                 6.2                         + 59.0             ternational shoppers. The most pop-
                                                                                                                                                                                                                                                                                             ular products are fashion/clothing
2016 / 17 + 1.5 %
                                                                                                                            trade fair and exhibition sector (down by                                   Switzerland                           4.0                         + 3.0              (46 per cent) and watches/jewellery

                                                                                                                                                                         Source: GNTB/WTM, IPK 2017,
                                                                                                                            6.9 per cent to 2.2 million).                                                                                                                                    (19 per cent).
                                                                                                                                                                                                        Poland                                5.4                         + 42.0

                                                                                                                                                                         figures are rounded.
                                                                                                                                                                                                        Arab Gulf States                      3.1                         + 0.0
                                Matthias Schultze, Managing Director of GCB German Convention Bureau
                                                                                                                                                                                                        Turkey                                2.5                         + 4.0
                                According to the 2017 / 2018 meetings and events barometer, the number of foreign partici-
                                pants in events in Germany has seen a further increase of 10.9 per cent. This figure underlines the
                                strategy of the GCB, which has focused on internationalisation in its global marketing activities.
                                Digitalisation – the GCB’s second area of activity – also presents great opportunities. While smaller meet-                                                            The inbound travel industry makes a significant contribution to Germany’s balance
                                ings of up to 50 participants are increasingly held as virtual events, technology is also making inroads                                                               of international payments. According to the Bundesbank, travel receipts from for-
                                into physical conferences, with the number of hybrid events on the rise.                                                                                               eign visitors to Germany rose by 4.2 per cent in 2017 to €35.3 billion. This is the
                                                                                                                                                                                                       eighth successive increase and means that the income from inbound tourism off-
                                                                                                                                                                                                       set 48 per cent of the money spent by Germans travelling abroad.

32    www.germany.travel                                                                                                                                                                                                                                                                                                                 33
02 IMAGE                                                                                                                                     OUTLOOK

           Sustained high
           demand …
                                                                                                                  1st
                                                      The highly respected Anholt-GfK Roper Nation Brands Index, which measures the
                                                      image of 50 countries around the world, put Germany in first place in 2017. France,
                                                      the United Kingdom, Canada and Japan made up the chasing pack. The previous
                                                                                                                                             Further opportunities for growth
                                                                                                                                                                                          International arrivals in 2018

3rd
                                                      year’s winner, the USA, came sixth in 2017.                                               UNWTO:
                                                                                                                                                Initial trends in 2018
                                                                                                                                                                                                                                                               Asia/Pacific
                                                                                                                                                The mood in the tourism industry
                                                                                                                                                                                                                     Worldwide                                     5 6
                                                                                                                                                                                                                                                               + – %
           According to the 2017 Travel and Tourism Competitiveness
           Report compiled by the World Economic Forum (WEF), Ger-
                                                                                    … meets top-quality               supply                    at the start of 2018 is significantly
                                                                                                                                                more optimistic than a year ago.                                      +4 – 5%
                                                                                                                                                                                              Africa
                                                                                                                                                                                                5 7
           many remains in third place, behind Spain and France, on the                                                                         Key source markets for interna-
           supply side in a comparison of 136 countries.                                                                                        tional travel are more economically          + – %

                                                                                                                 1
                                                                                                                                                stable, and according to its tourism
                                                                                                                                                barometer for 2018, the UNWTO                                                                             Middle East
                                                                                                                                                expects the stable upward trend to
                                                                                                                                                continue.
                                                                                                                                                                                                                                                             4 6
                                                                                                                                                                                                                                                          + – %

                                                                                                                                                                                                            Europe                                   Americas
                                                                                                                                                                                                        3.5 4.5 %                                  3.5 4.5
GERMANY’S BRAND                                                                                                                                                                                     +         –                                +       –      %

EQUITY IN 2017                                                                                                                                                                                               GNTB forecast for 2018:

         ranked no.                                                                                                                                                                                          3 – 4 % more international overnight stays
                                                                                                                                                UNWTO forecast for 2030:
                                                                                                                                                Ongoing growth over the long term
                                                                                                                                                According to the UNWTO, global tourism will                  The GNTB produces an overall forecast for the current year

Source: Anholt-GfK Roper Nation Brands Index.
                                                                                                                                                continue to grow well into the coming decade.                based on analysis of the available UNWTO and World Trav-
                                                                                                                                                Its prediction is for 1.8 billion arrivals by 2030.          el Monitor forecasts and on projections drawn from Federal

                                                                                                 5th
                                                                                                                                                In this scenario, Europe’s market share of glob-             Statistical Office data.
                                                                                                                                                al inbound tourism will fall from 51 per cent to
                                                                                                                                                41 per cent, while Asia’s share as a destination mar-

Economic           competitiveness …                                                                                                            ket will increase significantly from 25 per cent to          GNTB forecast for 2030:

           As an economic power compared to 137 other countries in the WEF’s 2017 / 18 Global Competitiveness Report, Germany was
                                                                                                                                                30 per cent. The Americas will attract 14 per cent of
                                                                                                                                                global travellers (down from 16 per cent in 2017), the
                                                                                                                                                                                                             121.5 million international overnight
           ranked an impressive fifth. Key factors in the country’s strong showing include infrastructure, public finances, credit rating,      Middle East will increase its share from 4 per cent to
                                                                                                                                                                                                             stays with an annual increase of 3.5 %
           technology leadership, market size and the standard of technology.                                                                   8 per cent, and Africa’s share will also increase, from
                                                                                                                                                5 per cent to 7 per cent. Despite this significant shift,    Europe will also remain Germany’s most important source

5th
                                                                                                                                                Europe will remain the leading source and destina-           market, with a 72.5 per cent share of all international over-
                                                                                                                                                tion market for international travel in 2030.                night stays. China and Poland are likely to be well established

                                                                                              sustainability

                                                                                                1st
                                                                                                                                                                                                             in the top ten markets for Germany’s inbound tourism.
                                                                    … is the basis of
Germany lies in fifth place in the Global Green Economy Index (GGEI) behind Switzerland and three Scandinavi-
an countries. The GGEI rates 80 countries according to their commitment to sustainability based on a range of
data sources. The study’s performance index assesses sustainability in the main segments of leadership & climate                             Emerging markets poised to see further growth in the medium term
change, efficiency sector, markets & investment, and environment. In addition to collecting factual data, the GGEI                           Over the coming years, the GNTB expects to see further growth in inbound tourism from markets in South East Asia and South
also surveys practitioners in these segments, with the findings forming the basis of its perception survey. Germany                          America. To harness the potential of these regions through systematic activities, the GNTB opened sales and marketing agen-
is in first place here.                                                                                                                      cies in Singapore and Buenos Aires in 2017.

34      www.germany.travel                                                                                                                                                                                                                                                     35
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