European Championship visitors generate billions for Germany's economy, according to IFO.
In preparation for the UEFA European Football Championship 2024, it's anticipated that hundreds of thousands of visitors will flock to Germany. The Munich IFO Institute has estimated this influx of tourists could potentially benefit the nation's economy.
Financially, the impact of the European Championship would be minimal, according to IFO's Chief Economist, Timo Wollmershaeuser. However, during the tournament, an additional billion Euros might be injected into the German economy from foreign tourists. At the 2006 World Cup, arrives and overnight stays by international guests increased by approximately 25% each, reported the institute's researcher, Gerome Wolf.
Applying this data to the 2024 European Championship, it's projected that there would be about 600,000 extra foreign visitors and 1.5 million additional overnight stays. This could lead to higher accommodation costs and increased sales in the catering industry. Ultimately, this would lead to a 1.3% increase in price-adjusted service exports in the second quarter compared to the first quarter, as IFO predicts.
After the European Championship concludes in July, these service exports would most likely decline, coinciding with tourists leaving Germany, which is economically insignificant. Although during the matches a surge in domestic clients is expected to occur in the hospitality sector and food retailing, they are likely to make up for their spent elsewhere, potentially leaving private consumption unchanged since this trend was also observed during the 2006 World Cup.
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The UEFA European Football Championship 2024 will see a significant number of soccer enthusiasts visiting Munich, boosting the city's tourism industry. Moreover, the Munich IFO Institute forecasts that this influx could contribute positively to Germany's economy, potentially surpassing the 25% increase in arrivals and overnight stays by international guests observed during the 2006 World Cup.
