Germany’s tourism could surpass pre-pandemic levels next year

The forecast from the WTTC shows the sector’s contribution to gross domestic product (GDP) could reach more than €364 billion by next year. Tourism in Germany is set to boost the national economic recovery with an average growth rate outpacing the overall country’s economy growth for the next 10 years.

According to the report, tourism’s GDP is expected to grow at an average annual rate of 1.3 per cent annually between 2022 and 2032, above the 1.1-per-cent growth rate for the country’s economy, to reach more than €394 billion (9.7 per cent of the total economy).

The forecast also reveals the tourism sector is expected to create almost half a million jobs in the next 10 years, averaging more than 47,000 every year.

By the end of this year, the sector’s contribution to GDP is expected to grow 52.4 per cent to more than €347 billion, amounting to 9.6 per cent of the total economic GDP, while employment in the sector is set to grow by 6.9 per cent to reach 5.5 million jobs.

A positive outlook on Germany’s tourism recovery

Julia Simpson, WTTC President and CEO, said: “Covid-19 wreaked havoc on Germany’s travel and tourism, affecting millions of livelihoods and impacting the national economy. However, our data provides a positive outlook, that will be provide a massive boost to businesses across Germany as the sector finally begins to recover from the pandemic.”

Before the pandemic, Germany’s tourism sector’s contribution to GDP was 9.8 per cent (€355.3 billion) in 2019, falling to just 6.3 per cent (€217.2 billion) in 2020, representing a staggering 38.9-per-cent loss.

The sector also supported nearly 5.9 million jobs, before an almost complete halt to international travel which resulted in a drop of nearly 800,000 (13.5 per cent), to reach just over five million in 2020.

WTTC’s latest EIR also reveals that 2021 saw the beginning of the recovery for the country’s tourism sector. Last year, its contribution to GDP climbed five per cent year-on-year, to reach €228 billion.

However, the recovery of jobs was slower, with less than 15,000 tourism jobs created, to reach nearly 5.1 million. The sector’s contribution to the economy was also impacted by the arrival of the Omicron Covid variant in late 2021, which temporarily stunted the recovery of travel and tourism industries around the world as many countries reinstating travel restrictions.