Business Tourism’s contribution to the German economy
Germany occupies a key position in the centre of Europe. The economy in the country is highly developed and industrialized with a high standard of living and the German population has a strong interest in tourism. Unfortunately, unlike other countries, Germany lacks a well-defined tourism image. It is often regarded as a business tourism destination and nothing else. This comes as no surprise, with Germany being Europe’s leading industrial nation and its largest economy. (Boniface, Cooper and Cooper, 2016)
In 2015, Germany had 31.5 Million international inbound arrivals. The main countries visiting are its neighbouring countries, with this resulting in a significant amount of
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According to (Turner and Freiermuth, 2016), the tourism sector in Germany made a total contribution to the GDP (Gross domestic product) of EUR270.2bn revenue in the year 2015. That is a total of 8.9% of the GDP. This includes domestic and international tourists. Around 2.92 Million people were employed in the sector, which is around 6.8 per cent of the whole population (Bmwi.de, 2017). They say, that Business Travel contributed EUR65.1bn to the total amount of tourism …show more content…
The traditional business meeting presents the biggest part with a total of EUR7.812bn. Conferences came to a EUR4.72bn and exhibitions to EUR3.255bn. Incentive trips are less popular and only contributed EUR488 million. This number could mean, that the visitors spend a lot of money on the incentive trips, even though they are only 3% of the overall type of trips
Figure 4: Business Trips by oversea visitors
(The German National Tourist Board, 2016)
Worldwide, 20% of all trips to Europe are business trips and 28% of those business trips lead to Germany. This shows that oversea visitors contributed to EUR18.228bn of the total revenue regarding tourism in Germany. (The German National Tourist Board, 2016)
The mentioned growth in the business tourism sector results in a raise in the gross production, leads to a higher wage for the 2.92 Million employees in the industry and a higher profit income. Conclusively, this leads to more disposable income for private households and generates revenue for the government, due to ascending tax revenues. This all results in a positive effect on the economy, therefore it has a positive impact. (Ahlert,
The population of the United States between 2011 and 2015 averaged 315,418,838 people. Correspondingly Germany’s population is substantially smaller with an average 60,870,378 people between 2011 and 2015. There is a large difference in the population density between the two countries. Americas large population over Germany will show more production in manufacturing companies though, 17% of the cars manufactured come from Germany and 5.5% of America’s total import comes from Germany. Germany’s production is very good though they do import 8.6% of their products are from the United States. The largest exporter into Germany is
• By 2020, China is estimate to be the biggest worldwide guest business representing 15% of guests; other huge markets are UK (9%), New Zealand (7%) and India
Tourism impacts can be generally classified into seven categories with each having both positive and negative impacts. These impacts include; economic, environmental, social and cultural, crowding and congestion, taxes, and community attitude. It is essential for a balance on array of impacts that may either positively or negatively affect the resident communities. Different groups are concerned about different tourism impacts that affect them in one way or another. Tourism’s benefits can be increased by use of specific plans and actions. These can also lead to decrease in the gravity of negative impacts. Communities will not experience every impact but instead this will depend on particular natural resources, development, or spatial patterns (Glen 1999).
Firstly, Berlin is one of the dynamic economic regions in Europe. In 2009, the nominal Gross Domestic product of the city state Berlin experienced a growth rate of 1.7% (−3.5% in Germany) and totaled €90.1 billion. Berlin's economy is dominated by the service sector, with around 80% of all companies doing business in services (“Business”). People remove to this city in order to improve own life.Some of them want to open new factory or company as far as momentous market for the Automatic Industry and producing medical engineering.Over 1385 companies have located to Berlin or invested here between 2001 and 2012 .In 2012, 162 companies established new locations in Berlin or expanded their Berlin-based location (“Berlin: Invest in a city with a bright future”). Official statistics show over 14,400 new start-ups by foreigners for 2010. This means that people without a German passport make ...
The two largest automotive companies, BMW and Volkswagen, are located in Bavaria and Wolfsburg. The largest bank in Germany has their headquarters in also in Frankfort (The 32). This draws money and development of New Federal States away. Cities benefit finically greatly when there are these large corporations that bring in billion in revenue.
In recent years, business tourism has become increasingly prevalent and prevailing in the tourism industry. There are large quantities of significant changes which have far-reaching implications for all consumers and suppliers of business travel such as consumption patterns, great developments in transport and communications technology, and the world´s political and economic changes related to tourism industry. All these developments have brought large effects on business travel as well as the main challenges to this sector for the coming years. Every day, tens of thousands of people are beginning or ending their business trips all around the world, while numerous conferences or exhibitions are being held globally, so business tourism is a
According to Cruise Market Watch (n.d.) the revenue generated by cruise tourism is estimated at US$36.2 billion with about 20.9 million passengers carried for 2013. This shows that the cruise industry is undoubtedly a profitable industry with a pool of like-minded tourists, where cruise companies are the one-stop shop offering a comprehensive package for a vacation.
6). This means that much of Japan’s economic gain, based on tourist affairs and travel, comes from its own people. Japan is truly a homogenous nation and it’s people pride themselves on helping their economy. Even though the Japanese public are helpful to their economy, tourism and travel makes up only a small percentage of the Japan’s overall Gross Domestic Product. In 2014, tourism and travel made up about only 2.25 percent of Japan’s whole economy GDP or $10,853.70 billion yen (“Travel and Tourism Economic Impact 2014: Japan,” 2014, p. 3). This is not significantly high, considering the tourists are mostly citizens of Japan. Japanese tourism contributions significantly little to Japan’s GDP compared with the rest of the world. Throughout most of the world, tourism accounts for 9.5 percent of countries’ GDPs (Elaine Kurtenbach, 2015, para. 20). At 2.25 percent, Japan’s tourism and travel’s contribution is significantly lower. Overall, Japan’s tourism world ranking is significantly higher than expected. In 2015, Japan ranked ninth in the World Economic Forum List (“Japan ranked ninth most tourist friendly nation, 2015, para. 1). Even though Japan’s tourism does not contribute very much to the economy, Japan is still considered one of few countries to more tourist friendly than most. Japan, before was ranked in
We have to take all of these factors into consideration as it is always difficult to enter new market. Germany is open to new companies coming to the country, if it cooperates with their rules.
Tourism represents an important part of the Thailand’s GDP. Indeed, according to the World Travel and Tourism Council, the direct input of tourism in 2015 represented 9.3% of the GDP of Thailand , for an amount of around 1,250 billion of Bahts. This figure is expected to grow by 4.3% the following year. We can see how important tourism is for the economy of the country. Although, the figures are much higher when we take into consideration the total input of this industry in the GDP. Then, the percentage rise up to 20.8% of the GDP (almost 2,800
Firstly, tourism has positive and negative impact on the economy of the local community. It can create jobs and mitigate the numbers of unemployment. For example: one
It is the economic effects of tourism which bring the most benefit to the host nation. Tourism is a low import user which means more of the money earned here stays here. The government is earning money through tourist taxes such as the airport tax, increased export earnings and income tax revenue from people employed by the industry. A balance must be struck between these benefits and associated negative impacts on the community and the environment.
The incentive travel basically implies unforgettable and entertaining trips paid by employers; with the main purpose of encouraging Steps to Incentive travel is for employees to reach challenging business goals of the company by achieving individual and/or group goals. The incentive travel is predominantly used with the basic aim of increasing sales.
Economic impacts our hotel industry by paying taxes, by accommodate rooms and by giving jobs to people. The revenue we get from our suppliers, employees, partners and guests gave us a huge effect on our hotel economics and supports our society. It prompts our expenses, providing good jobs, develops great business opportunity in practically all categories and benefits our society to succeed.
Is tourism an industry and if not, what is it and how can it be defined? To answer these questions we need to find the definition of industry first. An industry is a group of firms producing products and/or services that are close substitutes for each other(……). To be considered as an industry, it must meet three factors -- individual businesses, revenues of those businesses, and a common product. Now let’s see what tourism is. However, there is no single definition, that is to say no agreement on what tourism should be. There are some reasons: tourism includes a number of diverse sectors (e.g. transport, accommodation, attractions, other services); tourism includes a number of academic subjects -- some argue that as a subject tourism is conceptually weak; difficult to establish strict boundaries around tourism both as a business and as an area of academic study; weak data sources which make comparisons between countries difficult.