Tourists visiting for the European Championship bring an extra billion euros to Germany.
The coming European Football Championship, set to kick off on a Friday, is expected to bring an additional billion Euro into Germany's economy, estimates the Munich Ifo Institute. This comes from the increased presence of foreign tourists during the event. Foreign arrivals and overnight stays skyrocketed by 25% during the 2006 World Cup, as per research by Ifo's Gerome Wolf.
Applying these statistics to the 2024 EM, we can expect an extra 600,000 foreign tourists and 1.5 million additional overnight stays during the tournament. This could result in higher hotel prices and increased sales in the hospitality sector. Based on the Ifo Institute's calculations, this would mean a 1.3% growth stimulus for price-adjusted service exports in Q2 2024 compared to Q1 2024. However, this boost would lessen after the competition ends in July as tourists leave and return home.
Economically speaking, such events don't make a significant impact, explained Ifo's Chief Economist Timo Wollmershaeuser. While domestic consumers spend more on accommodation and food during the games, they would later find ways to recoup these expenses, so overall private consumption is unlikely to change significantly. "The past World Cup's experiences suggest this."
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The Munich-based Ifo Institute forecasts that the Euro 2024 Championship will inject an additional billion Euro into Germany's economy, attracting a projected 600,000 extra European Championship tourists.
During the 2006 World Cup, foreign tourist arrivals and overnight stays increased by 25%, equating to an extra billion Euro, as reported by Ifo Institute's Gerome Wolf.
