Tourism as a driver of economic growth in GermanyKey indicators for a cross-cutting industrySummaryThis and other brochures can be obtained fromFederal Ministry for Economic Affairs and EnergyPublic Relations DivisionEmail: publikationenbundesregierung.debmwi.deTo order brochures by phone:Tel.: +49 30 182722721Fax: +49 30 18102722721Publishing detailsPublishing detailsPublished byFederal Ministry for Economic Affairs and EnergyPublic Relations Division11019 Berlinbmwi.deProject management and editingFederal Association of the German Tourism Industry (BTW)Jörg-Michael RösnerAm Weidendamm 1 A10117 BerlinTel.: +49 30 7262540Fax: +49 30 72625444infobtw.debtw.deStudy conducted and led byDIW EconDr Anselm Mattes,Lisa Sophie Becker,Franziska NeumannMohrenstr. 5810117 BerlinTel.: +49 30 20609720Fax: +49 30 206097299amattesdiw-econ.dediw-econ.deProject partnerFachhochschule Westküste; Institute of Management and Tourismus (IMT) and dwif-Consulting GmbHCurrent as atNovember 2017Design and productionPRpetuum GmbH, MunichImagesNikada iStock (title), BMWi/Sandra Ludewig (p. 2), TUI AG (p. 3), anyaberkut Fotolia (p. 6), monkeybusinessimages iStock (p. 7), manfredxy iStock (p. 9), DragonImages iStock (p. 18), MPower. Photocase (p. 20)The Federal Ministry for Economic Affairs and Energy was awarded the audit berufundfami-lie® for its family-friendly staff policy. The cer-tificate is granted by berufundfamilie gGmbH, an initiative of the Hertie Foundation.Fachhochschule WestküsteHochschule für Wirtschaft & TechnikInstitut für Management und TourismusThis brochure is published as part of the public relations work of the Federal Ministry for Economic Affairs and Energy. It is distributed free of charge and is not intended for sale. The dis-tribution of this brochure at campaign events or at information stands run by political parties is prohibited, and political party- related information or advertising shall not be inserted in, printed on, or affixed to this publication.Introductory remarks by Iris Gleicke . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2Introductory remarks by Dr Michael Frenzel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3Key figures at a glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41 . Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62 . The TSA system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .73 . Results of the German Tourism Satellite Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .93.1 TSA Table 1: Inbound tourism expenditure in Germany.93.2 TSA Table 2: Domestic tourism expenditure in Germany .103.3 TSA Table 4: Total tourism consumption in Germany .113.4 Economic importance of tourism .123.4.1 Value added and employment effects generated by tourism .123.4.2 Comparison of the tourism industry with other sectors of the German economy .153.4.3 Comparison of current figures with those from 2010.164 . Digitisation of the tourism industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .184.1 Market changes following the development of digital business models .184.2 Analysis of digitisation within the TSA system .195 . Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .201Content2The German government seeks to ensure that its tourism policy has a strategic focus, while at the same time being forward-looking. In order to do this, it needs reliable and up-to-date information. This includes data about tourisms contribution to economic output and employment in Germany.The present study confirms that tourism plays an important role in our economy. Much of this is owed to our tourism industry and our motivated tourism professionals who provide attractive trips and services that combine good quality with affordable prices. And of course, the German tourism industry also thrives on our open society, our friendliness and our hospitality.The current edition of the study also shows that there have been some shifts and changes compared with 2012 the year the previous edition of study was published.What we now need to do is to work in partnership with the tourism industry to analyse and evaluate the studys findings. This also means identifying long-term trends, scenarios and new prospects for tourism in Germany. This will now become easier thanks to the new study. The cur-rent edition provides us with an improved and extended set of data, and analyses this data in line with internation-ally accepted methods and standards, which will allow us to compare our data with that of the EU, OECD and the World Tourism Organisation (UNWTO).The factors driving forward the new developments we are seeing are digitisation including the sharing economy, improving mobility, tailor-made travel offers, the influence that our aging population has on travel behaviour as a whole, and rising demand for travel in the emerging economies Introductory remarks by Iris GleickeYours,Iris GleickeMember of the German BundestagParliamentary State SecretaryFederal Government Commissioner for the New Federal StatesFederal Government Commissioner for Small and Medium-sized Enterprises and Tourismas prosperity in these countries grows. Tourism is also increasingly influenced by issues ranging from sustain-ability and climate change to terrorism and violence.In order for the tourism industry to thrive, it needs the right legal framework and a good business environment. The German government continues to actively work hard towards achieving these goals. It is pursuing inclusive and lasting growth that ensures that everybody can share in the benefits of prosperity.I would like to express my particular gratitude to the Federal Association of the German Tourism Industry (BTW) and consultancy firm DIW Econ GmbH for their excellent work in producing this study.I hope that you will find this study both informative and inspiring.3The tourism industry fulfils our needs and desires for mobil-ity, relaxation and recuperation, leisure experiences, and intercultural understanding. Tourism is also an important driver of economic growth, both in Germany and around the world. Almost three million people in Germany work in tourism and millions of jobs depend on this sector. The strength of these figures and the 4 per cent share of gross value added that the industry generates means that tourism is just as important to the economy as engineering or the financial sector. The current edition of this study looks at these achievements in more detail.The fact that the tourism industry is a diverse, cross-cutting sector made up of many different facets is still not widely recognised among the general public. Tourism includes weekend trips involving travel by bus, plane, or train, concert trips or visits to restaurants in a city, trips to an amusement park, business trips, as well as just classic holiday trips. Trips taken within Germany, departing from Germany, or arriving in Germany from abroad all help strengthen our domestic tourism industry. This current study provides figures for each of these different categories. We would like to thank the German government for its support which has enabled the new edition of this study to be published.Although people like to travel, maintaining the economic strength of the tourism industry and stimulating further Introductory remarks by Dr Michael FrenzelYours,Dr Michael FrenzelPresident, Bundesverband der Deutschen Tourismuswirtschaft e. V.(Federal Association of the German Tourism Industry, BTW)growth cannot be taken for granted. This is something that the present study also shows. Over the past few years, other sectors have posted stronger growth. If we want our tourism industry to maintain its economic strength and remain a driving force for jobs, we also need the right business con-ditions, which includes designing a comparable policy environment to take account of digital change. This current publication includes information on this issue as well.I hope you enjoy reading this study.4Tourism spending In 2015, tourism spending in Germany reached 287 .2 billion. Domestic tourists contributed the largest share, spending a total of 224 .6 billion (78 %), whereas total expenditure by foreign tourists amounted to 39 .6 bil-lion (14 %) and other consumption1to 23 billion (8 %). Private trips and business trips contributed approxi-mately 80 % and 20 % of total expenditure, respectively. Food and beverage-serving outlets accounted for the largest share of spending (17.8 %). This was followed by expenditure on various consumer goods (other goods) (17.3 %), accommodation (12.5 %), air passenger travel (7.6 %), vehicle fuel (7.2 %), as well as sporting, cultural and recreational services (7.1 %).Effects on gross value creation and employment Tourism spending in 2015 generated direct gross value added of 105 .3 billion. This corresponds to 3 .9 % of total gross value added in Germany. In 2015, 2 .92 million persons were directly involved in the production and provision of tourism goods and services, which was equivalent to 6 .8 % of total employ-ment in Germany. The high share of employment accounted for by this industry shows that tourism is a very job-rich industry. Business trips directly generated 18.1 billion of gross value added (17 % the tourism industry as whole) and employment for 533,000 persons. Beyond that, demand for intermediate goods and ser-vices in the tourism industry indirectly generated 76 .1 billion of gross value added and accounted for employ-ment for 1 .25 million persons.The tourism industry compared with other sectors The tourism industry accounts for 3 .9 % of total gross value added comparable with retail (3 .3 %), the manufacture of machinery and equipment (3 .5 %), and provision of professional and technical services (4.4 %). In terms of the number of persons it employs, the tour-ism industry ranks very highly when compared to other industries. At 6.8 %, it comes in just behind retail (7.5 %) and healthcare (7.2 %), but ahead of construction and education (both at 5.6 %). Other sectors, such as legal, accounting and consulting services or financial services, are substantially smaller both in terms of gross value added (2.8 % and 2.6 %, respectively) and employment (3.0 % and 1.6 %, respectively).Development since 2010 The Tourism Satellite Account for the reporting year 2010 put total tourism consumption at 278.3 billion. Compared with the figure for 2015, this system indicates nominal growth in tourism consumption of 3 .2 % over this five-year period. This has resulted in nominal growth in the tourism industrys direct gross value added of 8 .5 %. As in the years previous, the tourism industry made an important contribution to Germanys economic output in 2015. However, as total domestic gross value added rose between 2010 and 2015 by 18 %, the share of the tourism industry in this gross value added fell from 4.4 % to 3.9 %. Total employment in Germany rose strongly, while the number of persons employed in the tourism industry increased just slightly, rising from 2.86 million in 2010 to 2.92 million in 2015. This meant that the share of the tourism industry in overall employment fell slightly: while 7.0 % of the German workforce was employed directly in the tourism industry in 2010, in 2015 this had fallen to 6.8 %.Key figures at a glance1 Other consumption comprises imputed rent payments for accommodation services related to the long-term use of real estate by the owner or tenant for tourism purposes, the share of government subsidies linked to tourism that are provided for cultural services, and the acquisition of consumer durables for tourism.5KEY FIGURES AT A GLANCEDigitisation of the tourism industry Disruptive business models are changing the tourism industry at a very fast pace. This development is particularly affecting three segments: the brokering of tourist services the accommodation sector passenger transport