Germany's tourism industry has weathered the financial crisis relatively unscathed. One key reason is the country's reputation of good value for your money. Photo: Oktoberfest in Munich.

By Deanne Corbett

As the world's biggest travel trade fair, the ITB, opened its doors in Berlin, Germany was upbeat: It outperformed all other European countries on average when it came to the travel industry, with Berlin emerging as the big winner within the country.

Weak economic activity in 2009 contributed to a 5.6 percent drop in the average number of foreign arrivals across Europe, but Germany itself in 2009 saw only a 2.7 percent decrease, according to data from the United Nations World Tourism Organization (UNWTO).

Although Spain remains the European tourism leader with a market share of 11 percent, the relative resilience of the German market means it is now tied with France for second place with around 9 percent, followed by Italy with an 8 percent share.

The head of German National Tourism Board (GNTB), Petra Hedorfer, said Germany has a reputation for being good value for money.
"That's an important factor, particularly in economically difficult times," she said.

For Germany, the most important international source market continued to be the Netherlands. Last year, the number of Dutch visitors rose by 2.8 percent to a total of 18.2 percent, or some 10 million tourists.

In contrast, the number of overnight stays by visitors from the US market, which accounts for around 10 percent of inbound travel, fell by 3.4 percent to 4.3 million.

The financial crisis has had a stronger impact on domestic business travel, especially since Germany is an important market for trade fairs and congresses.

On average, business tourism declined by 4 percent; still far less than the European average, which dropped by 9 percent.

Hedorfer expects a turnaround in 2010 as the effects of the crisis subside. She's predicting that the German tourism sector will grow by 1 to 3 percent this year. "People will travel more, but their trips will certainly not be longer, further, or more expensive," she said.

Berlin bucks the trend

One city bucking the overall downward trend last year is the German capital, Berlin. It had a record year in 2009, with the number of overnight stays increasing by 6.2 percent in comparison with the previous year, according to the city's tourism authority.

Berlin Tourism spokesman Christian Taenzler said the city's popularity can be explained by a number of factors.

"Berlin is really the trend metropolis right now, especially in foreign countries, where it's seen as a premier destination in terms of trends, lifestyle, music, fashion, clubbing, culture and entertainment," Taenzler said.. "And secondly, we have very good value for money here.

"The quality and service of our hotels is very high, and most hotels are not more than five years old. We have an average room rate of 80 euros, whereas in other international capitals, you might pay double that amount."

He added that two events - the celebrations marking the 20th anniversary of the fall of the Berlin Wall and the World Athletics Championships - also helped draw visitors to the capital in 2009.

The city also managed to expand its business travel sector, despite the effects of the economic crisis. According to Berlin Tourism, the city's meeting, incentive, congress and event (MICE) business registered an event increase of 4 percent, as well as a 6 percent increase in guests.

Courtesy Deutsche Welle