Germany’s tourism sector recovery has been led by domestic inflow, while international spend still lagged behind by more than 25 pc of 2019 levels and will continue to do so in 2024, says a report by WTTC.

There has been a much slower recovery of Germany’s travel and tourism sector compared to other key European destinations, the World Travel and Tourism Council’s (WTTC) 2024 Economic Impact Research (EIR) has reported.

According to WTTC data, domestic tourism is propping up the sector in Germany, but international travel spend in Germany remains below pre-pandemic levels. International visitor spending in 2023 remained more than 25 pc behind 2019 levels.

According to the global tourism body’s latest research, the sector’s contribution to Germany’s GDP reached just over EUR 453 billion in 2023, EUR 13.5 billion below 2019 levels.

The report adds that unlike many of its neighbours, Germany’s travel and tourism sector is yet to recover its GDP contribution, jobs lost during the pandemic, and international visitor spend.

Employment in travel and tourism grew by 5 pc to reach 6.18 million, but this was still almost 250,000 behind 2019.

The statement adds that domestic visitor spending however, did fully recover in 2023, exceeding the 2019 level by EUR 2.9 billion, evidence that domestic visitors have led the sector’s path toward post-pandemic recovery.

“While Germany’s travel and tourism sector has shown signs of resilience, there is a long way to go, and the recent increase of airline passenger taxes will undoubtedly hamper the recovery,” says Julia Simpson, WTTC President and CEO.

“Domestic visitor spending has stayed strong. But taxes will only delay the recovery. The German government should sit down with travel and tourism businesses to plan how to stimulate the return of international visitors as it is an important driver of the economy,” Simpson adds.

Although the sector’s overall GDP contribution is forecast to recover in 2024, both jobs and international visitor spending will remain below 2019 levels, the statement adds.

WTTC forecasts that travel and tourism will contribute almost EUR 469 billion to the German economy in 2024, an increase of 0.5 pc from 2019. Jobs are predicted to increase by 160,000 this year, however, this will still be 80,000 below pre-pandemic highs.

WTTC says that international visitor spending is expected to remain almost 10 pc behind 2019 with a deficit of EUR 5.1 billion in 2024, compared to five years ago. However, domestic visitor spending is projected to continue growing modestly this year, with a 1.2 pc increase to reach almost EUR 411 billion.

WTTC is forecasting that the sector could grow its annual GDP contribution to nearly EUR 554 billion by 2034, representing just over 12 pc of the German economy, and could potentially employ almost 6.5 million people across the country.

However, this is only possible if the government works with the private sector to ensure Germany remains an attractive destination for international visitors and provides viable long-term employment to German residents, the statement adds.

WTTC says that across the European Union, travel and tourism sector grew by more than 8 pc in 2023 to reach EUR 1.65 trillion, whilst jobs reached more than 23.5 million, just past the 2019 level.

International spending grew 11.5 pc to hit EUR 471.5 billion within touching distance of the pre-pandemic period. Domestic visitor spending grew almost 5 pc to reach EUR 963 billion, surpassing the pre-pandemic level.

WTTC is forecasting that travel and tourism across the region will continue to grow next year with GDP contribution set to reach almost EUR 1.75 trillion. Jobs are forecast to exceed 24.5 million, international visitor spending is forecast to reach EUR 517 billion and domestic visitor spending is expected to pass EUR 982 billion.