Wandergruppe in einer Stadt im Schwarzwald

German tourism industry on the rise – but still economically fragile

The German tourism industry is recovering from years of crisis. The sector is visibly stabilizing, but still faces significant cost and structural pressures. For the industry to firmly regain its footing, better economic conditions and specific relief measures are needed.

A current analysis by the German Institute for Economic Research (DIW Econ) commissioned by the Federal Association of the German Tourism Industry (BTW), the German Chamber of Commerce and Industry (DIHK), and the German Tourism Association (DTV) shows: The tourism industry is significantly regaining strength and is approaching its pre-pandemic relevance again. At the same time, many businesses are still under considerable cost and structural pressures. The recovery is visible — but not yet stable enough to last long-term without additional political support.

Tourism Industry in Figures (2024)

  • Share of the overall economic gross value added: 3.7%
  • Employees in the tourism industry: 2.7 million people
  • Share of all employed persons: around 6%
  • Guest expenditure (nominal): €392 billion
  • Guest expenditure (price-adjusted): €319 billion
  • Job losses during the pandemic (2019–2021): approx. 800,000 positions

Significance and dynamics

The current analysis confirms: Tourism remains a mainstay for growth, regional development, and employment. Especially in rural areas, it acts as an economic backbone — for hospitality as well as for trade, mobility, and many associated industries.

With the resurgence of international travel and normalization within the country, the industry is increasingly returning to its structural role in the German economic network.

Businesses under pressure

Despite discernible recovery impulses, many businesses are still under tremendous strain. High energy prices, rising food costs, and wage increases burden companies significantly. This particularly affects smaller establishments in the hospitality and gastronomy industry as well as providers of tourism infrastructure.

Moreover, municipal budgets are often weak. Investments in pools, trails, cultural, and leisure infrastructure are deferred or canceled — impacting the attractiveness of entire regions. Thus, recovery is visible in demand, but not necessarily in stable business results.

The tourism industry urgently needs relief in costs, bureaucracy, and working hours.

DIHK-Präsident Peter Adrian

Peter Adrian

-- DIHK-Präsident

Spillover effects

Tourism has strong impacts on other areas of the economy. It influences trade, construction, transportation, cultural offerings, and fairs and event industries. These cross-sector effects make tourism an important economic factor with high regional significance.

A stable tourism economy secures jobs, strengthens city centers, encourages investments, and enhances the competitiveness of regions.

Concrete recommendations for action

Clear political priorities are needed to avoid jeopardizing the recovery:

1. Cost relief in energy and food sectors

Many businesses operate at the profit margin. Targeted relief measures can help secure economic stability in the short term.

2. Consistently reduce bureaucracy

The measures announced in the coalition agreement — such as more flexible working hours or the abolition of the receipt obligation — should be implemented swiftly to immediately relieve businesses.

3. Strengthen municipal investment capacity

Since many tourist facilities are municipally owned, the capacity of local authorities is crucial for the industry. Investments safeguard regional attractiveness and competitiveness.

4. Strategically anchor tourism politically

The sector should be considered in economic policy discussions and strategies as a cross-sectional and future-oriented industry — not merely as a leisure or consumer sector.

Download

Economic Factor Tourism 2024 (PDF, 1 MB) (only available in German)

Key areas:
  • Tourismus

Contact

Seibert, Julia_quad

Julia Seibert

Director Tourism Economy and Tourism Policy

Blum, Petra_test

Petra Blum

Spokesperson