Market Update - 11.09.24

CURRENT MAJOR TOPICS WITHIN THE TOURISM INDUSTRY IN THE DACH REGION

• WHERE TOURISTS WILL BE ASKED TO PAY IN 2024: More and more countries are charging tourist taxes in 2024 to combat overtourism and generate additional revenue. In Egypt, visitors pay 25 USD, in Belgium there is an overnight fee and Bhutan charges around 90 euros per day. Bulgaria charges up to 1.50 euros, Germany a culture or bed tax, and France charges up to 4 euros per night. In Greece, the fees vary depending on the hotel category, Iceland charges 4 to 7 euros, Bali a one-off fee of 8.90 euros, and in Italy there are hotel taxes depending on the city. Other countries such as the Netherlands, Austria, Portugal, Spain, Switzerland and the USA have similar regulations. Read more

• TRAVEL AGENCIES SEE INFLUENCE OF OVERTOURISM ON BOOKINGS: A survey by the Quality Travel Alliance (QTA) shows that the issue of overtourism is having an increasing impact on booking behavior. Many travel agencies consider it important to inform their customers about overcrowded destinations, but demand more reliable information from the destinations. Almost 60 percent of respondents consider current measures against overtourism to be ineffective. Entrance fees such as in Venice are viewed controversially, while 56 percent are in favor of a tourism levy that would benefit the regions. Two thirds of travel agencies expect overtourism to have a strong influence on booking behavior in the future. The political debate, on the other hand, is often seen as an obstacle to practical solutions. Read more

• EUROPE'S MOST POPULAR ISLANDS ON SOCIAL MEDIA: Vacation home provider Interhome has investigated which European islands are particularly popular on social media. Booking data from November 2023 to May 2024 and hashtags on Instagram and TikTok were analyzed. The analysis shows that the following islands receive particularly high levels of attention on the platforms Sardinia, Mallorca, Corsica, Elba, Sicily, Tenerife, Gran Canaria, Rügen, Krk and Funen. For German Interhome guests, Mallorca, Sardinia and the Baltic island of Usedom are among the most popular destinations, while the French prefer Corsica, Sardinia and Sicily. These islands are characterized by a strong presence on social media and are frequently booked as vacation destinations. The study illustrates how strongly social media influences travel behavior. Popular posts and hashtags on platforms such as Instagram and TikTok help to turn certain destinations into trending destinations. Islands such as Mallorca, Tenerife and Gran Canaria in particular benefit from their high visibility and are especially popular with European travelers. Read more

• OUTBOUND TOURISM AS A GUARANTOR OF STABILITY: Studies show that travel has a major impact on personal happiness. Outbound tourism, i.e. vacation trips abroad, plays a central role in this, but is not given sufficient consideration within the framework of the “National Platform Future of Tourism”, even though travel plays an important role in people's well-being in times of political and economic uncertainty. A Finnish study by the University of Tampere shows that people feel more relaxed on vacation than on days off at home, as everyday obligations such as cooking and cleaning are eliminated. A study published in the journal Tourism Analysis in 2023 confirms that frequent travel increases happiness regardless of age, gender or income. Another US study found that people who regularly plan vacations and travel between 15 and 21 days a year are particularly happy. According to happiness researcher Michelle Gielan, the majority of people who have booked a trip feel happier and more energized. Despite the clear benefits of travel, outbound tourism only plays a minor role in German tourism policy, even though more than two thirds of vacation trips are made abroad. The German Travel Association (DRV) is therefore calling for greater consideration to be given to this important sector, as German tourists play a significant role for many destinations and their economies. For many Germans, traveling abroad is an integral part of their lives and contributes significantly to their sense of happiness. Read more

• AUTUMN EUPHORIA AND WINTER BOOM - TRAVEL INDUSTRY FLYING HIGH: The Swiss travel industry is experiencing a successful autumn and expects sales growth of up to ten percent compared to the previous year. Winter is also looking promising, particularly due to strong demand in the long-haul travel sector. Despite initial uncertainties in the summer due to a rainy June and the end of the European Football Championship, the industry recorded a significant increase in bookings in July, resulting in sales at the previous year's level. The Swiss Travel Association (SRV) expects sales growth of five to ten percent for the fall. Popular fall destinations are Egypt, Turkey and Mauritius. Long-term bookings for the winter are above expectations, and falling flight prices on long-haul routes could explain the increase in long-haul travel. Trend destinations for winter are Thailand, the Indian Ocean and the Caribbean. Despite the success, there are challenges, particularly due to geopolitical crises, which cause additional planning effort. The SRV emphasizes the need to find solutions together with local organizations and authorities. Read more

CURRENT TOPICS WITHIN THE TRANSPORTATION INDUSTRY IN GERMANY & EUROPE

• CIVIL AVIATION - 22% MORE PASSENGERS LAST YEAR: Civil aviation: 22% more passengers last year. Swiss civil aviation recorded a total of 1.4 million aircraft movements (take-offs and landings) in 2023, a slight increase of 0.5% compared to the previous year. The number of passengers also increased by 22% this year and currently stands at around 54 million. Despite these increases, the figures are still slightly lower than before the coronavirus pandemic: aircraft movements in 2023 are 3% lower than in 2019 and the number of passengers is still 9% lower than before the pandemic. Read more

• EMIRATES MASSIVELY EXPANDS CONNECTIONS WITH PARTNERS: Emirates significantly expanded the number of its connections through partnerships last year. The airline has greatly expanded its network with 31 codeshare partners, 118 interline partners and 13 rail and helicopter partners. This provides access to almost 1,700 additional destinations and improves travel options through optimized baggage transfers and frequent flyer benefits. Of particular note is the partnership with Flydubai, which has given over 17.5 million passengers access to an expanded route network since its launch in 2017. Emirates has also signed 16 new partnerships, including codeshare agreements with Avianca and Batik Air Malaysia, as well as interline agreements with Condor, KAM Air and other airlines. Through these partnerships, passengers will benefit from an expanded global network with over 140 destinations through connections via Dubai International Airport. Partnerships with airlines such as United, Air Canada and Qantas also enable travel to more than 350 destinations in North, Central and South America, Australia and New Zealand. Read more

• AIR FRANCE ANNOUNCES NEW PHILIPPINES ROUTE: Air France is expanding its route network for the winter flight schedule and is adding a new non-stop connection to the Philippines from the beginning of December. The route between Paris and Manila will be operated with an Airbus A350-900 in three-class seating (34 Business, 24 Premium Economy, 266 Economy Class). Flight AF-208 departs from Paris-CDG on Mondays, Wednesdays and Saturdays at 23:20 and arrives in Manila at 19:30 the following day. The return flight AF-209 departs from Manila on Tuesdays, Thursdays and Sundays at 9:50 p.m., arriving in Paris-CDG at 5:50 a.m. the following day. In addition to the new route to Manila, Air France and KLM offer a daily connection to Manila. KLM flies on Tuesdays, Thursdays, Fridays and Sundays from Amsterdam with a stopover in Taipei. In the 2024/25 winter flight schedule, Air France is also planning new destinations such as Salvador de Bahia (Brazil) from October 28, Kilimanjaro (Tanzania) from November 18, Malé (Maldives) from mid-December to mid-January and Kiruna (Sweden) from December 21. Read more

DESTINATION NEWS

• GREECE: Greece remains one of the world's most popular destinations, but travelers' preferences are increasingly changing. According to the report “Emerging Destinations in Greece 2024” by Mabrian and Mindhaus, visitors increasingly prefer less well-known, quieter places. Particularly remote islands such as Lesvos, Chios and Samos are seeing impressive growth in visitor numbers: 78.8%, 65.2% and 51.7% respectively. In addition to these islands, mainland regions such as the Peloponnese, Eastern Macedonia and Thrace are also gaining in popularity. The Peloponnese has become one of the four most visited regions in Greece thanks to new luxury projects and targeted advertising. Eastern Macedonia and Thrace, particularly the island of Thasos, have also seen a 26.4% increase in visitor numbers compared to the previous year. These trends offer Greece the opportunity to diversify its tourism offering and promote sustainable travel. Read more

• ITALY:  Italy is preparing to retender state concessions for beach baths after a long-running dispute with the EU was resolved. The Italian Council of Ministers has decided that the current concessions will remain valid until September 30, 2027, while the tender for the new concessions must begin in June 2027. In some cases, the transition may be extended until March 31, 2028. The new concessions will be awarded for a minimum of five and a maximum of twenty years to allow the new operators to recoup their investments. Operators must also make compensation payments for inventory taken over. The background to this regulation is an EU directive that Italy should have implemented in 2006. Many Italian beaches have been leased to private individuals for decades, often at low prices of around 8200 euros per year, which has led to criticism that the industry is making disproportionately high profits. The new regulation is intended to open up the market while safeguarding the interests of current leaseholders. The opposition Five Star Movement criticized the long transition period as inadequate and described the measures as a “fool's pose by the Meloni government” and a mockery of Brussels. Read more

• QATAR: Since the 2022 FIFA World Cup, Qatar has rapidly become a popular travel destination. Despite the hot summer months with seawater temperatures of up to 34 degrees, the emirate is proving to be a fascinating destination with its own character. A fam trip by fvw|TravelTalk, in which 25 travel professionals took part, showed that Qatar offers authentic experiences such as the traditional Souq Waqif, while Doha combines modern amenities and impressive architecture. Qatar's popularity has doubled since the World Cup. Qatar Airways is supporting the tourism sector with new direct flights, including Hamburg as a new departure airport. The airline's stopover offer is growing and many new hotels, particularly in the five-star segment, have been opened. However, there is still a need for upscale four-star hotels. German visitors are important for tourism, although they only account for around four percent of all arrivals. Many hotels, such as the Hilton Doha and the Mandarin Oriental, are specifically targeting German guests. Despite the insolvency of FTI, other tour operators such as TUI and Dertour have quickly adapted to the market. Visit Qatar promotes the destination through close cooperation with travel agencies and an e-learning program. Read more

• SPAIN: The Partido Popular (PP) is calling for a “great state pact” for tourism in order to recognize its importance for Spain's economy. The motion submitted by the PP to the Senate emphasizes that attacks and negative portrayals of tourists could damage Spain's reputation and jeopardize its tourism potential. The PP rejects taxes such as the tourist tax, which could have a negative impact on tourism. Senator Agustín Almodóbar warned that the impression could be created that tourists are unwelcome in Spain. Spanish Tourism Minister Jordi Hereu emphasized that international tourist arrivals and spending continue to increase. From January to July 2024, spending rose by 18.6 percent to 71.1 billion euros, while the number of visitors increased by twelve percent to 53.4 million. Hereu emphasized that the tourism sector continues to create wealth and jobs. Read more

• JAPAN: Japan plans new rules for entry. Japan is considering the introduction of a new electronic registration system called Jesta (Japan Electronic System for Travel Authorization) for travellers from visa-free countries. Similar to the ESTA system in the USA or the EU's planned ETIAS system, Jesta will require registration before entry. Currently, travelers with a valid passport can enter Japan without a visa. The introduction of Jesta aims to prevent illegal migration and closely monitor residence. Currently, there are only a few forms that need to be completed upon entry. Jesta is expected to be introduced by 2030 at the latest and will affect travelers from around 70 countries, including Germany. Details on application deadlines, validity periods and fees have yet to be determined. Japan is currently recording an increase in tourist arrivals of almost nine percent compared to the previous year and 65 percent compared to 2019.  Read more

• CUBA: Cuba wants to defy crises with culture. Cuba continues to struggle with economic difficulties, including supply shortages, rising prices and power cuts. Nevertheless, experts report improvements. Private supermarkets and secure gasoline supplies, especially in the west of the island, have eased the situation for tourists to some extent. Despite this progress, visitor numbers are declining. Only 2.4 million tourists were recorded in 2023 and a similar trend is expected for 2024. Of particular concern is the decline in German visitor numbers, which fell to 69,000 in 2023 compared to 250,000 previously. Cuba is now focusing on cultural attractions to boost tourism. The “Cuba Única” marketing campaign highlights cultural heritage and hospitality. Initiatives such as tours to local start-ups and the expansion of cultural offerings are intended to attract new visitors. Despite the challenges, Cuba remains a fascinating destination and there is hope for a recovery in tourist numbers. Read more

• NORWAY: Criticism from the local population has stopped a new planned campaign for more tourism in Norway. The aim was to promote the Norwegian right to camp freely anywhere in the country, even on other people's land. Stein Ove Rolland, managing director of the tourism association Fjord Norway, considers such a campaign to be too risky, as it could lead to “wear and tear on nature, increased littering and possibly accidents and rescue operations”. Read more

• BALI: Indonesia has decided to suspend the construction of new hotels in certain areas of Bali in order to counteract the problems of overtourism. This particularly affects the regions of Denpasar, Badung, Gianyar and Tabanan. The moratorium, which could potentially last up to a decade, also includes the construction of new villas and nightclubs. The tourism sector in Bali has grown rapidly again after the pandemic. Last year, there were 541 hotels on the island, compared to 507 in 2019. The Indonesian Hotel and Restaurant Association (PHRI) reports a total of 29,005 hotels and accommodation units in Indonesia, including more than 61,000 Airbnb and accommodation units, of which around 34,000 are in Bali. However, the rapid increase in tourism has put pressure on the local infrastructure, environment and culture. Incidents of tourists behaving disrespectfully towards sacred sites or performing stunts on social media have led to resentment among locals. In the first half of this year, 2.9 million foreign visitors came through Bali Airport, which has further increased the pressure on the island. Read more

• SWEDEN: Sweden will abolish the tax on airline tickets introduced in 2018 from July 1, 2025. This decision, which was announced by the conservative head of government Ulf Kristersson, aims to strengthen the competitiveness of Swedish airlines. Kristersson argued that abolishing the tax would be compatible with climate policy in the long term and would allow travel to continue in the vast country. The tax, which was introduced by the center-left government in 2018, is based on the flight distance. Economics Minister Ebba Busch pointed out that only a few EU countries levy such a tax. In contrast, Germany increased its air traffic tax by around 25 percent in May, which led to an intense debate and complaints from the aviation industry, as this could slow down growth in air traffic. Environmental organizations sharply criticized the decision. Daniel Kihlberg from the Swedish Society for Nature Conservation described the abolition as a step backwards in climate policy. The Swedish Climate Protection Council had previously warned that measures such as a lower fuel tax could jeopardize the country's climate targets. Read more

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