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Germany’s award-winning travel and tourism sector defies European economic trends, creating exciting opportunities for investors
December 10, 2013Article by Ray Withers
Flying in the face of years of economic wobbles across the Eurozone, Germany’s travel and tourism sector is going from strength to strength. The recently published Travel and Tourism in Germany to 2017 report from Market Research Reports shows that the sector achieved positive growth from 2008 to 2012, despite the trials and tribulations of neighbouring countries. The early data for 2013 and the following years are also encouraging.
Another year of growth
Germany’s tourism sector continued its positive growth during the first eight months of 2013, with the Federal Office of Statistics recording some 49 million overnight stays by international guests staying in hotels with greater than ten beds. The figure is equivalent to an increase of 4% on the same period during 2012. British and Polish tourists were some of the main contributors to the positive trend.
Another key factor behind Germany’s continuing travel and tourism success is the serious attitude that the country takes towards the sector. Quality and sustainability are components which are rigorously monitored. One result of this careful attention to detail was the awarding of the Green Globe Certificate to the German National Tourist Board during 2013. It is the first time that the prestigious global standard for sustainable tourism management has been awarded to a national tourist board.
Looking to the future
With the Deutsche Bundesbank this month revising its 2014 growth forecast upward to 1.7% and with 2.0% predicted for 2015, the travel and tourism sector looks set to enjoy a period of additional expansion over the years ahead. A number of initiatives have been planned by the tourist board to ensure the growth is nurtured.
The luxury 4* AlpenClub hotel and spa in the Bavarian Alps is a good example of the positivity and investor confidence that abounds within the Germanic hotel room asset class. An assured net yield averaging 10.33%, forecast occupancy rates of over 70% and a low entry point of just £47,198 have combined to mean that only five AlpenClub rooms remain available for investment since the opportunity’s launch earlier this year.
The fierce demand for AlpenClub is indicative of the investment community’s interest in the sector. With a history of growth behind it and a rosy future seemingly mapped out in front of it for years to come, Germany’s travel and tourism sector is one of the essential investment areas to watch as the Eurozone saga continues to unfold.