Tourists attending the European Championship in Germany contribute an extra billion euros to the country's economy.
During the European Football Championship, which kicks off on a Friday, Germany could rake in an extra billion euros, estimate researchers from the Munich Ifo Institute. This would be brought in by foreign tourists. At the start of the 2006 World Cup in Germany, foreign guests' arrivals and overnight stays saw a 25% increase each, Ifo researcher Gerome Wolf explained.
Applying this to the upcoming EM 2024, we can project around 600,000 additional foreign tourists and 1.5 million extra overnight stays during the event.
With the sudden increased number of tourists, accommodation prices could skyrocket, resulting in a boost for the hospitality industry. Additionally, this surge could lead to a 1.3% growth in price-adjusted service exports in the second quarter compared to the first quarter of 2024. After the tournament ends in July, these service exports will probably decline because of tourists leaving Germany.
In terms of the economy, such events tend to have minimal effects, said Ifo Business Cycle Research Director Timo Wollmershauser. Although domestic consumers would spend more on the hospitality sector and food retail during the games, they'd likely make up for it elsewhere, keeping overall private consumption steady. "The World Cup in 2006 seems to suggest this," he added.
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- The Ifo Institute, based in Munich, Germany, predicts that the Summer fairy tale of hosting the European Championship in 2024 could attract an additional 600,000 foreign tourists, contributing an estimated 1 billion Euros to the country's economy, similar to the increase seen during the 2006 Euro.
- Euro 2024 could potentially bring a hopeful boost to Europe's hospitality industry, as accommodation prices may rise due to the influx of tourists, resulting in a 1.3% growth in price-adjusted service exports in the second quarter compared to the first quarter of 2024.
- Foreign tourists attending the European Championship in Germany bring not just economic benefits but also a cultural exchange, potentially contributing to a more unified European Championship atmosphere and memorable experiences for the local German population.
