GERMANY – TOURISM SECTOR

There can be no doubt – tourism in Germany is a success story. Economic growth and growing mobility of
large sections of the population in many countries of the globe have contributed to this success in recent
years. Germany is the seventh most visited country in the world and the strongest economy in Europe. The
tourism sector is an economic heavyweight and one of the largest employers in Germany.
In 2015, domestic and foreign tourists spent more than €287 billion on goods and services in Germany. This
represents an increase of approximately 8.5% in gross value added from 2012, to more than €105 billion.
And this has a positive impact on Germany’s labour market: close to 3 million people worked in the sector
in 2015. The boost generated by the tourism sector can also be felt in other industries such as trade, skilled
crafts, and agriculture. If one includes upstream input like services at airports, supplies by bakers to hotels
and restaurants, or renovation work in hotels, the gross value added figure rises by another €76 billion, and
the number of jobs by another 1.25 million, showing the indirect effects of tourism.
The economic importance of the tourism industry is frequently underestimated. In Germany, tourism is a
lucrative industry that provides numerous employment opportunities. It generates direct gross value added
(GVA) of nearly €100 billion, the equivalent of 4.4% of the entire German GVA. 2.9 million individuals are
directly employed in this economic sector.
Digitalization has radically changed the tourism sector. Use of the Internet is relevant in every phase of
travel The importance of the Internet has grown immensely in the past few years. Whereas surveys of the
industry in 2003 stated that only 27% of Germans used the Internet to acquire information and 47% in 2009,
this figure had already jumped to 60% by 2015.
Inclusion and balanced regional development ,The German government’s tourism policy focuses not only on
economic goals, but also on social and structural aspects. Demographic change and a growing awareness for
the necessity of including everyone in society are making the topic of accessibility decisive to the future of
tourism.
One of the most important tasks of the Federal Government is promoting Germany internationally as a travel
destination. Because tourism is an important economic factor in Germany that contributes substantially to
both gross value added and employment, the Federal Government has a legitimate interest in strengthening
Germany’s image as a tourist destination by increasing inbound tourism. Sponsoring inbound tourism helps
secure and increase employment in a tourism economy numerically dominated by SMEs, and bolster the
economic strength of structurally weak regions.

The seventh and most recent T20 meeting took place in May 2016 in China. The sixth meeting also took
place during the 18th legislative term, in September 2015 in Turkey, and the fifth meeting in November
2013 in the UK. The hosts of the T20 meeting in Turkey and China were also the countries that chaired the
G20 meetings at those respective times. The focus of the fifth meeting in London was easing travel
restrictions. The ministers concurred that there is much room for improvement – particularly regarding visa
and entry conditions – despite the progress that has been made.
The T20 meetings are an important platform for strengthening tourism ties between the G20 countries and
thereby contribute to easing travel and visa restrictions, to investment in tourism projects or to education of
young people for employment in the hospitality industry. Tourism is of particular significance for
developing and emerging economies.
MBA 134 – Understanding Business
Assignment 1

GERMANY – Tourism Sector

Name : Gaurav Kharayat

Roll No. : 1827612
Class : MBA - I