Carnival Season: Study Reveals Significant Revenue Increase Compared to Last Year

The upcoming Carnival season is set to generate considerable economic activity across Germany, with new research indicating a substantial increase in projected revenues compared to previous years. According to an analysis by the Institute of the German Economy (IW), the festive season is expected to bring in at least EUR2.1 billion, a notable rise from the estimated EUR1.7 billion registered last year.

This year's Carnival, which extends across 115 days, is longer than in previous years, contributing to the expected revenue boost. The festivities traditionally commence on November 11 and conclude on Ash Wednesday, which falls on March 5 this year, leading to an extended period for celebrations and spending.

The hospitality sector is predicted to benefit significantly, with the IW estimating that the sale of food and beverages alone will generate about EUR925 million. Furthermore, the retail market, which includes sales of costumes and sweets, is anticipated to contribute approximately EUR449 million. Transportation services, including train tickets and taxis, are expected to yield around EUR322 million, while hotel accommodations are projected to bring in EUR240 million. Other sectors are estimated to account for about EUR179 million.

In terms of accommodation, hotel rates in major Carnival cities like Cologne have surged, with an average price of EUR105 per night for a double room during peak Carnival days, representing an increase of nearly 80% compared to off-peak times. In contrast, cities such as Mainz and Düsseldorf have seen only marginal price increases.

The IW has been tracking Carnival-related revenues since the 2019/2020 season, utilizing historical data to make projections while adjusting for inflation and the varying length of the Carnival season. While exact figures for the revenues generated during Carnival are not available, the IW asserts that their estimates closely reflect actual economic activity.

The importance of Carnival extends beyond mere financial metrics; it also plays a vital role in fostering community spirit and resilience during challenging times. The IW emphasizes that Carnival embodies values of unity and optimism, which are especially crucial in the face of global uncertainties.