Tourism in Germany Reaches Record Highs Despite Industry Concerns

The demand for tourism in Germany continues to rise, with recent data indicating a new record in overnight stays. According to the Federal Statistical Office, September saw approximately 48.6 million overnight stays in German accommodation establishments, representing a 1% increase compared to the same period last year.

Domestic tourism remains the primary driver of this growth. Overnight stays by German residents increased by 1.4%, reaching close to 41 million. However, a decline was observed in international visitors, with overnight stays from foreign guests falling by 1.2% to 7.8 million. This decrease is partly attributed to fewer arrivals from the United States, traditionally Germany's most significant overseas tourism market.

Statistics from January to August show 1.96 million arrivals from the US, marking a 3.2% year-on-year decline. Industry experts attribute this trend to reduced consumer confidence and unfavorable currency exchange rates, which have made travel to Europe more expensive for Americans. Additional factors, such as higher air traffic control fees in Germany, have also been cited as possible contributors to the reduced numbers of American tourists. Nevertheless, airlines are noting a slight upward trend in bookings for the coming months.

Conversely, German tourists have also demonstrated decreased interest in traveling to the United States, even as exchange rates have become more favorable for them. Travel providers have reported substantial declines in bookings, correlating with recent political developments in the US. Data from the German Travel Association indicates that the United States lost nearly 20% of its revenue from German tourists over the summer months.

Despite the overall increase in overnight stays, the economic outlook for Germany's hospitality sector remains uncertain. The German Hotel and Restaurant Association (Dehoga) has warned that the industry could face its sixth consecutive year of losses. Preliminary figures reveal that, in the first half of 2025, hotels and restaurants generated 15.1% less revenue in real terms compared to 2019, the last pre-pandemic year. The sector continues to struggle with significantly higher operational costs, leading to a 33% rise in consumer prices since 2020. This has resulted in tighter profit margins and increased price sensitivity among customers.

Although Germany is experiencing unprecedented popularity as a travel destination, many hospitality businesses remain cautious about the future. A recent Dehoga survey involving 4,000 establishments across the country found that nearly 40% of respondents anticipate ending 2025 with financial losses. The industry continues to advocate for policy changes, such as a reduction in VAT for the gastronomy sector, to help offset rising costs and support long-term stability.

In summary, while tourism demand in Germany shows robust growth, the underlying economic conditions present ongoing challenges for accommodation and hospitality providers. The sector's ability to adapt to shifting market dynamics and manage rising costs will be critical in determining its recovery and sustainability in the post-pandemic era.