Saxony's Tourism Bounceback After Challenging Times
The tourism industry in Saxony is showing signs of recovery, despite the lingering effects of the coronavirus pandemic. Culture Minister Barbara Klepsch from the CDU party acknowledged this progress during her speech at the presentation of the latest tourism stats in Dresden. The Free State welcomed around 6.7 million visitors from January to October, a 14% increase from the previous year. However, this number still falls six percent short of the record-breaking year of 2019.
Overnight stays in Saxony have also grown, with approximately 17 million bookings from January to October 2023. This represents an 11% increase compared to the pre-pandemic time, yet it's 3.4% under the 2019's record mark. The Tourism Association (LTV) anticipates that Saxony's industry will witness around 20 million overnight stays for the entire year.
The booming festive season, featuring festivities like the Striezelmarkt, Christmas stollen, mountain parades in the Ore Mountains, and winter sports, is expected to attract a significant number of tourists to Saxony. Klepsch referred to Saxony as a prime Christmas destination. If the 20 million mark is reached, it would mark the tourism industry's third strongest year since 1990.
Leipzig, recognized as a vibrant city, enjoys popular appeal among tourists. The region managed to outperform its 2019 figures, with around 3.2 million overnight stays from January to October 2023. This represents an 8.4% increase compared to 2019. The surge in trade fair and congress business following the pandemic, among other factors, is attributed to Leipzig's impressive performance. In comparison, Dresden recorded 3.7 million overnight stays, a 5% decrease from its record high.
LTV President Jörg Markert noted that the demand for travel, both primary vacations and secondary trips, is robust. City tourism and business travel have also bounced back. However, LTV expresses concerns over inflation, rising energy prices, and possible changes to the VAT rate. The association assumes that the majority of price increases will be passed on to tourists. While savings on vacations have not yet materialized, the prospect for 2024 remains cautiously optimistic.
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The tourism industry in Saxony is grappling with various challenges, including the impact of the coronavirus, air traffic fluctuations, regional variations in visitor numbers, inflation, energy prices, and potential changes to the VAT rate.
- Air Traffic and Tourism Impact:
- Ryanair's Operations: Ryanair has struggled with growth in some German regions due to high operational costs, such as taxes, air traffic control fees, airport security fees, and airport usage fees. This has led to a 77% decline in air traffic compared to pre-Covid levels, making it the worst-performing air transport market in Europe.
- Regional Variations:
- While some German regions experience growth in regional airports, major hubs like Leipzig and Dresden are experiencing a decline in air traffic.
- Inflation and Energy Prices:
- The tourism industry is vulnerable to inflation and rising energy prices, which can increase the costs of running hotels, restaurants, and other tourist facilities, posing challenges to businesses' profitability.
- Potential VAT Rate Changes:
- Changes in VAT rates could impact the tourism industry, potentially making accommodations and services more expensive for tourists. The association mentions no specific VAT rate changes as of yet.
- General Economic Environment:
- The overall economic environment in Germany, including Saxony, plays a significant role in the tourism industry. High operational costs and lack of competitive pricing with reduced taxes and fees in other European countries are critical issues for Saxony.
