Market Update - 28.08.24

CURRENT MAJOR TOPICS WITHIN THE TOURISM INDUSTRY IN THE DACH REGION:

• TUI EXPECTS STRONG AUTUMN BUSINESS: TUI, Germany's largest travel provider, expects strong autumn business with high demand for the upcoming fall vacations. According to TUI Germany CEO Stefan Baumert, many Germans want to extend the summer, and beach vacations on the Mediterranean, especially on the Turkish Riviera in Antalya, are particularly popular. Despite the declining propensity to spend in Germany, the desire to travel remains unbroken. In addition to Antalya, long-haul destinations such as the USA, the United Arab Emirates, Thailand, the Maldives and Mauritius are also in demand. Germany, Austria, Italy, Poland and the Czech Republic are very popular for car trips. TUI has expanded its offer for the autumn vacations after its competitor FTI filed for insolvency and is now offering 75,000 additional vacation places and 65 additional flights. Read more

• PREFERRED ROOM AMENITIES FOR THE PERFECT HOTEL STAY:For many travelers, the choice of accommodation plays just as important a role as the vacation destination itself. According to a study by Booking.com, air conditioning and power sockets near the bed are among the most desired room amenities. These factors strongly influence whether guests would stay in the same accommodation again. The study shows that preferences vary depending on the country of origin. Spanish holidaymakers value air conditioning and power sockets by the bed, while German travelers attach particular importance to a beautiful view. In France, the view comes first, while British travelers prefer a tea maker in their room. Read more

• LUXURY TRAVEL IS BECOMING INCREASINGLY POPULAR:Luxury travel is becoming increasingly popular, despite rising travel costs. Price-conscious vacationers are also treating themselves to luxury with special extras, which is further boosting the market. Tour operators are responding with an expanded range of products, which is leading to more sales. According to Sebastian Relle, counter professional at the travel agency Luxury Travel in Bornheim, North Rhine-Westphalia, many customers are foregoing other trips in favor of a high-quality vacation. In the current Touristik Aktuell Special, sales coach Harald Sontowski gives practical tips on how luxury travelers can be better advised. He emphasizes that luxury should not be defined by outward appearances and that German luxury travelers value quality and exclusivity above all. Read more

• GERMANY IS GREECE'S TOP SOURCE MARKET: Greece recorded a significant increase in tourism revenue in the first half of 2024, with Germany playing a key role as the most important source market. Overall, tourism revenue rose by 754.8 million euros to 6.9 billion euros, driven by a 15.5 % increase in tourist numbers to 11.6 million visitors. Interestingly, however, the average expenditure per trip fell by 3.1 %. Revenue from Germany rose by 7.4 % to 1.2 billion euros in the first seven months of the year. The UK also recorded significant growth with an increase of 19.9% to over one billion euros. The USA contributed 540.1 million euros, which corresponds to a slight increase of 1.0%, while revenue from Russia fell sharply by 70.1% to just 5.2 million euros. In June 2024, however, the results were mixed. While revenue from the UK rose by an impressive 42.5% to EUR 608.9 million and France and Italy also recorded growth, revenue from Germany fell by 1.4% to EUR 522.9 million. Revenue from the USA and Russia also fell in June, by 32.8% and 60.2% respectively. Read more

• HOW TO GET A GRIP ON THE ISSUE OF OVERTOURISM: The biggest problem with overtourism is that there is no dialog with the locals about it, says Brian Young, European head of the adventure travel specialist G Adventures. What is needed is clear transparency about the benefits tourism brings to the respective destination - and therefore to the local population. A positive example is New Zealand, where the industry is in direct dialog with the population. Almost 90 percent of people have a positive image of tourism. Read more

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CURRENT TOPICS WITHIN THE TRANSPORTATION INDUSTRY IN GERMANY & EUROPE

• BDL WARNS OF MASSIVE CUTS IN FLIGHT OFFERINGS: The Federal Association of the German Air Transport Industry (BDL) has warned of significant cuts to the number of flights in the upcoming winter flight schedule. According to Joachim Lang, Managing Director of the BDL, high location costs could lead to the cancellation of up to four million seats. German airports are particularly affected, as the increase in air traffic tax in May and the rise in charges for security checks and air traffic control have significantly increased operating costs. Lang criticized the fact that these costs are significantly higher in Germany compared to other countries, which is causing airlines to consider whether it is still economically viable to fly to Germany. He called on the German government to invest the revenue from the aviation tax in the promotion of alternative aviation fuels, as provided for in the coalition agreement. This measure was necessary to decarbonize the sector. The tax increase was originally decided due to the budget crisis and affects all passenger flights from German airports. Read more

• SURVEY ATTESTS TO SERIOUS DEFICIENCIES IN AIRLINE SERVICES: A recent survey by the air passenger rights service provider Flightright reveals serious shortcomings in the customer service and information quality of airlines. According to the survey of almost 1,000 passengers, most travelers are dissatisfied with the availability and helpfulness of customer service as well as the quality of the information provided in the event of flight irregularities such as delays or cancellations. Only 20 % of respondents stated that they were satisfied with the availability of their airline's customer service after being informed of problems. The majority of participants (around 50 %), on the other hand, expressed dissatisfaction. The quality of information provided by the airlines after flight irregularities scored particularly poorly: Only 23 % rated this as good or very good, while 41 % rated it as poor. The results were also sobering with regard to the helpfulness of customer service. Only eight percent of passengers were satisfied, while 42 % rated this as inadequate. Overall, passengers were very reluctant to recommend their airline: only seven percent would definitely recommend their airline, while 41 % would probably or definitely not do so. A third of respondents were still undecided. Read more

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DESTINATION NEWS:

• BRAZIL: Brazil is tightening entry regulations for foreign travelers without visas from next week in order to curb abuse as a stopover for migration to the USA and Canada. The new rules require these travelers to proceed immediately to their destination or home country. This comes against the backdrop of an increase in asylum seekers from Asia using Brazil as a stepping stone for onward travel. The Brazilian government emphasizes that many of these migrants abuse the entry conditions and leave the country after a few weeks to travel further north. Read more

• SRI LANKA: From October 1, 2024, the visa procedure for entry to Sri Lanka will be lifted for travelers from 35 countries, including Switzerland and Germany. Obtaining a visa was often time-consuming and characterized by IT failures and delays in issuing the e-visa, which made it difficult to enter Sri Lanka. The Sri Lankan Ministry of Tourism has now announced that travelers from the 35 countries will be able to enter Sri Lanka without a visa in the future, which has been particularly well received by the travel industry. Stephan Roemer, CEO of Tourasia, expressed his delight at this development and expects that the removal of the visa hurdle will bring a major boost to the tourism industry in Sri Lanka. Roemer emphasizes that Sri Lanka is a popular travel destination and that the simplification of the entry process will now make it even more attractive for international travellers. Read more

• ECUADOR: Ecuador, once known as the “island of peace”, is experiencing a dramatic escalation of violence triggered by drug trafficking and the withdrawal of state institutions. In cities such as Guayaquil, gangs are fighting for control and protection rackets are widespread. The collapse of state structures under the governments of Lenín Moreno and Guillermo Lasso has created a void of power that criminal organizations have filled. President Daniel Noboa is trying to take a tough stand against the gangs, but the security situation remains tense. Ecuador's future depends on whether it succeeds in strengthening the state and fighting crime effectively. Otherwise, the country risks sinking further into insecurity. Read more

• TURKEY: Turkey saw nearly 29 million foreign tourists in the first eight months of 2024, marking an 8.3 percent increase from the previous year, according to the Culture and Tourism Ministry. Including Turks living abroad, 33.47 million holidaymakers visited during this period. Russians made up the largest group of foreign visitors, with 3.6 million traveling to Turkey. German tourists followed closely, with numbers rising to over 3.5 million, while British and Iranian visitors also showed significant increases. Despite the war, Ukrainian arrivals rose by 15 percent to 525,000. However, tourist numbers from Israel dropped by over 90 percent. Istanbul was the top destination, attracting 10.5 million international travelers, followed by Antalya with 8.49 million. Turkey aims to reach 60 million tourists and $60 billion in tourism revenue this year. Read more

• JAPAN: Japan is currently experiencing a huge boom in tourism and recorded the highest number in its history with 17.8 million foreign tourists in the first half of 2024. This corresponds to an increase of 65% compared to the previous year and even 8.9% more than in the previous record year of 2019, according to the Japan National Tourism Organization (JNTO). The growth in travelers from South Korea is particularly striking, with over 700,000 visitors in June, which can be attributed to the weak yen. There were also 575,000 tourists from Taiwan, around 75 percent more than in the previous year. China is in second place with 661,000 visitors, followed by the USA and Hong Kong. European markets also showed strong growth. Almost 17,000 people from Germany traveled to Japan in June, an increase of 22%. Over the first half of the year as a whole, visitor numbers from Germany rose by 40 percent. The increase is even stronger among British and French visitors, closely followed by Italians. Read more

• ISTANBUL: Istanbul remains a popular destination for international tourists. In the first six months of 2024, 7.9 million foreign tourists visited the city, including 1.64 million in June, an increase of one percent compared to the previous year. Most tourists arrived by plane, mainly via Istanbul Airport. Russian tourists made up the largest group of visitors in June with 171,633 arrivals, followed by US-Americans (112,966) and Germans (102,559). The port of Karaköy was the most used sea route with 48,380 arrivals. Istanbul's cultural heritage and lively atmosphere continue to attract many visitors. Read more

• ISRAEL: The Israeli government has decided to launch an initiative to support the tourism industry and is investing 70 million shekels (around 17 million euros). The aim is to ensure stability in tourism-dependent sectors of the economy, in particular by preserving jobs. The government will pay up to 93 percent of employees' salaries if the company's turnover has fallen by at least 80 percent compared to the previous year. This is intended to ensure that sufficient workers are available as soon as international tourism picks up again. Read more

• BHUTAN: Bhutan has launched a new tourism portal to attract more tourists and make it easier for them to access tourism services. According to Bhutan's Ministry of Tourism, the platform is already live and aims to improve the visitor experience in the kingdom. Over 400 tour operators, almost 1,000 certified guides and numerous hotels and homestays have already registered. Vacationers can now book and plan their trip directly through the portal. This initiative is part of Bhutan's 50th anniversary of tourism, during which the country aims to triple its tourist numbers. Read more

• BALEARIC ISLANDS: The Balearic wholesalers' association ADED has launched the “We love tourism” campaign to counteract the negative effects of the mass demonstrations critical of tourism. This initiative is a response to the increasing tensions and attacks against tourists. The association emphasizes that it is important to thank tourists for their support, as they are essential for many local businesses and jobs. The association's statement refers to the previous “SOS Turismo” campaign, which was launched during the pandemic to support the tourism sector. The association calls on all sectors and groups to join the new campaign to work together to combat attacks on tourists. The association emphasizes that while problems such as mobility, parking and illegal accommodation need to be addressed, violence and negative comments against tourists are not the way forward. It asks rhetorical questions to emphasize the economic importance of tourism and warns of the consequences of a drastic drop in visitor numbers for employment in the Balearic Islands. Read more

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That’s a wrap for this week! Whether you’re planning your next big adventure or just daydreaming at your desk, remember: every corner of the world has a story. Stay curious, and see you in the next edition! Safe travels and dreamy destinations.

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