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Germany : a fantastic World Cup

Germany did not muff its World Cup. Semi-finalist on the field, the Federal Republic came out a winner in organising an event that was unanimously appreciated and considered festive and friendly.

“It was a serious challenge, but together we succeeded. From any point of view, this mega-event was an enormous success for Germany as a destination," congratulates Petra Hedorfer, representative of Germany’s Tourist Office DZT. This great popular celebration reached record highs. Germany reported 31% more arrivals during the period for a total of 5.7 million tourists. Forecasters are counting on 52 million tourists throughout the year. At the same time "domestic" nights posted growth by 4.5%. Meanwhile, the economic context improved and the GNP for the second quarter posted a 2.4% increase. “Figures for Germany’s tourism industry are actually in a growth phase,” rejoices André Witschi, Chairman of the Board of Accor Germany. “The entire country benefited from the World Cup.”In fact, Germany’s RevPAR rose by 36.8% in June and 35.0% in July. These results are better than those realised in France in 1998 (+ 32.1% and +28.2% respectively) and than those forecasted by MKG Consulting which expected a 20% increase in the RevPAR. For hoteliers, the World Cup only offers reasons for satisfaction. “There were no bad surprises. We are satisfied with our occupancy rate and average daily rates alike,” says Angela Oelschlägel, director of Public Relations at Martim Hotels. “Sixteen of our hotels were FIFA partners. They generated additional revenue of 10 to 12 million euros.” The performance of German properties was boosted by average daily rates that rose sharply: +39.6% in June and + 27.3% in July. Hoteliers thus practiced efficient yield management, making it possible to optimise average daily rates within the framework of the WCAS marketing system implemented by FIFA. In terms of occupancy, the World Cup had the expected effects. Cities that are traditionally not very touristy such as Dortmund, Leipzig or Gelsenkirchen saw their occupancy rates skyrocket. However, Germany as a destination on the whole managed to scare off some of its traditional clientele including businessmen and tourists who are not soccer fans. In fact, occupancy overall was down by 1.3 points in June, with significant drops in cities such as Munich, Frankfurt and Berlin. These drops were fortunately fairly well counterbalanced by the presence of clientele that made a greater contribution in terms of average daily rate, ensuring important increases in the RevPAR in all cities that hosted matches. In July, when most of the matches had already been played, occupancy rates went up again (+3.6 points). The beginning of the tourist season and the return of Business clientele explain these favourable results. “We are seeing growth in the MICE segment after the event since meetings and conferences could not be held in June,” remarks Angela Oeschlägel. Berlin was still on war footing until July 9, the day of the final match. And, with growth of the OR of by +7.5 points, the German capital did not miss the end of the game. The fans’ celebration, organised outside the matches, beat all records with 9 million visitors throughout the competition, even surpassing Munich’s celebrated Oktoberfest. “The infrastructures that were built, the new perception of Germans with regard to their country and the friendliness of the welcome received by visitors are all key to the pursuit of sustainable and efficient marketing of our destination,” stresses Petra Hedorfer. And André Witschi concludes optimistically: “We have won thousands of ambassadors who are spreading Germany’s new image around the world. This, and it has always been one of our main priorities, will have a long-term impact and give powerful momentum to Germany’s tourism industry in the years to come.”In fact, Germany’s RevPAR rose by 36.8% in June and 35.0% in July. These results are better than those realised in France in 1998 (+ 32.1% and +28.2% respectively) and than those forecasted by MKG Consulting which expected a 20% increase in the RevPAR. For hoteliers, the World Cup only offers reasons for satisfaction. “There were no bad surprises. We are satisfied with our occupancy rate and average daily rates alike,” says Angela Oelschlägel, director of Public Relations at Martim Hotels. “Sixteen of our hotels were FIFA partners. They generated additional revenue of 10 to 12 million euros.” The performance of German properties was boosted by average daily rates that rose sharply: +39.6% in June and + 27.3% in July. Hoteliers thus practiced efficient yield management, making it possible to optimise average daily rates within the framework of the WCAS marketing system implemented by FIFA. In terms of occupancy, the World Cup had the expected effects. Cities that are traditionally not very touristy such as Dortmund, Leipzig or Gelsenkirchen saw their occupancy rates skyrocket. However, Germany as a destination on the whole managed to scare off some of its traditional clientele including businessmen and tourists who are not soccer fans. In fact, occupancy overall was down by 1.3 points in June, with significant drops in cities such as Munich, Frankfurt and Berlin. These drops were fortunately fairly well counterbalanced by the presence of clientele that made a greater contribution in terms of average daily rate, ensuring important increases in the RevPAR in all cities that hosted matches. In July, when most of the matches had already been played, occupancy rates went up again (+3.6 points). The beginning of the tourist season and the return of Business clientele explain these favourable results. “We are seeing growth in the MICE segment after the event since meetings and conferences could not be held in June,” remarks Angela Oeschlägel. Berlin was still on war footing until July 9, the day of the final match. And, with growth of the OR of by +7.5 points, the German capital did not miss the end of the game. The fans’ celebration, organised outside the matches, beat all records with 9 million visitors throughout the competition, even surpassing Munich’s celebrated Oktoberfest. “The infrastructures that were built, the new perception of Germans with regard to their country and the friendliness of the welcome received by visitors are all key to the pursuit of sustainable and efficient marketing of our destination,” stresses Petra Hedorfer. And André Witschi concludes optimistically: “We have won thousands of ambassadors who are spreading Germany’s new image around the world. This, and it has always been one of our main priorities, will have a long-term impact and give powerful momentum to Germany’s tourism industry in the years to come.”

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