tourism market overview - arizona office of tourism · pdf filemarket update: germany fy...

TOURISM MARKET OVERVIEW

Germany, Austria and Switzerland in FY 2016/17

Market Update: Germany

FY 2016/2017: PR Accomplishments and Achievements

FY 2017/2018: Outlook on PR Activities

OVERVIEW

MARKET OVERVIEW – GERMANY, SWITZERLAND & AUSTRIA 2

More people in the shops, full employment and low interest rates helped Germany’s economy to itsstrongest growth in five years in 2016. There was a 2.0 percent increase in consumer spending.

Spending on refugees as well as increased pension entitlements meant government expenditureincreased by 4.2 percent, adding 0.8 percentage points to the overall growth rate.

“This was the strongest increase in state consumption since 1992 following German reunification,”the head of the Federal Statistics Office Dieter Sarreither said.

The German statistics office estimates growth in the eurozone’s largest economy was around 0.5percent in the fourth quarter of 2016 and 1.9 percent for all of last year.

“The German economy in 2016 once again defied an entire series of downside risks, thanks to strongdomestic demand,” said ING economist Carsten Brzeski, adding that Germany’s biggest risk now wascomplacency.

Government spending on settling and training refugees could also taper off with fewer arrivals.Economists expect the growth drivers to change with a moderate shift from domestic demand tostronger export activity.

MARKET UPDATE


Source: www.euronews.com

•Population: 82.8 million inhabitants (approx. 99 million incl. Austria & Switzerland)

Germany’s population is no longer shrinking. Four consecutive years of increasingly high net migration have outpaced the country’s birth deficit, taking the country’s population to over 82 million people – a level last seen in 2009.

• Labor Force: 44.1 million people in April 2017

• Unemployment Rate: 3.9% in May 2017

DEMOGRAPHIC FACTS & STATISTICS




In May 2017, roughly 44.1 million persons resident in Germanywere in employment according to provisional calculations of theFederal Statistical Office (Destatis). This was a record high sinceGerman reunification. Compared with May 2016, the number ofpersons in employment increased by 651,000 or 1.5%. In themonths from January to April 2017, the year-on-year growthrates had been 1.5%, too. Approximately 1.6 million people wereunemployed in May 2017, 198,000 fewer than a year earlier.

According to provisional results of the employment accounts, thenumber of persons in employment rose by 125,000, or 0.3%, inMay 2017 month on month as a result of the continued springupturn. The increase on April 2017 corresponded to the relevantaverage of the past five years. After seasonal adjustment, that is,after the elimination of the usual seasonal fluctuations, thenumber of persons in employment increased by 36,000, or 0.1%,in May 2017 month on month.

Results of the labour force survey show that 1.57 million peoplewere unemployed in May 2017. Compared with the previousmonth, the number declined by 210,000 or 11.8%. Adjusted forseasonal and irregular effects, the number of unemployed stoodat 1.66 million. It was down by roughly 10,000 people from theprevious month. The adjusted unemployment rate was 3.9% inMay 2017.

Source: www.destatis.de

•GDP: approximately US$ 3.467 trillion in 2016



The economic situation in Germany was characterized by solid and steadygrowth in 2016 too. Overall, the gross domestic product (GDP) increased by1.9%, which was above the average of the last ten years (1.4%).

Consumption was the main contributor to GDP growth. Household finalconsumption expenditure rose a price-adjusted 2.0% on the previous year.The increase in government final consumption expenditure was evensubstantially higher (4.2%). One of the reasons for this strong growth was thelarge immigration of people seeking refuge, which resulted in considerablecosts.

Growth was also supported by the significant rise in price-adjusted grossfixed capital formation in construction, which was mainly due to the highergross fixed capital formation in dwellings. The increase in gross fixed capitalformation in machinery and equipment was somewhat slower. Since price-adjusted imports rose more strongly than exports, the balance of exports andimports of goods and services had a slightly negative effect on GDP growth inGermany

The government expects inflation to be 1.8% in 2017. For 2018, panelists expect inflation to increase to 1.7%.



•Inflation in Germany approximately 1.8% in 2017

Inflation Development in Germany in %

Source: tradingeconomics.com

The German Tourist

• 27 days of paid annual leave

• 57% of all Germans went on vacation at least once in 2016 (minimum of five days)

• 11.4% to a long-haul destination

• North America remains the most popular long-haul destination in 2016

• Package holidays remain the most important form of holiday organisation for Germans (43%).

• Travel agencies are still the most important booking channel

• Growing number of online bookings - up from 14 % in 2006 to 38 % in 2016.

TRAVEL MARKET


Source: Tourismusanalyse 2016

Methods of gathering travel information:

• Internet (71%)

• Tour Operator Brochures (52.4%)

• Newspapers & Magazines (44.2%)

• Printed Travel guides (30%)

• State/City Travel Offices (30%)

Germany’s largest tour operators :

TRAVEL MARKET


TUI

Incoming German Travelers to U.S.:

TRAVEL MARKET


1782299

1686825

1726193

1823797

1875952

1916471

2056492

2271820

2204000

2008 2009 2010 2011 2012 2013 2014 2015 2016

Incoming German Travelers

Negative factors affecting travel to U.S.

• Currency

„ A strong Dollar can have an negative effect on visitation numbers, because if the price increases ten or more percent, the German booking behavior changes.”

Prof. Torsten Kirstges, Jade Hochschule Wilhelmshaven

• Terrorism

2016 showed a marked slowdown in German outbound travel.

38% of the Germans feel that terrorism influences their holiday planning.

18% avoid their preferred destination.

Source: German Federal Association of the Tourism Industry (BTW) & Association of Tour Operators (DRV) / ReiseAnalyse 2017

TRAVEL MARKET


Sensitivity to political issues in the U.S.

• 46% of all Germans who are interested in a trip to the United States do feel not welcomed at the moment and would rather postpone a trip.

• 36% differentiate politics and the cordiality of the people and want to travel to the U.S. anyway no matter of the country’s politics.

• 17% percent do not care about U.S. politics.

According to a representative survey from the FVW magazine (February 2017)

• Another big challenge: German journalists are showing strong solidarity with their U.S. colleagues.

• Many journalists informed us that they currently refuse press trips to the U.S. and publishing related travel stories due to a ‘mistreatment of journalists’ in the country.

TRAVEL MARKET


Positive factors affecting travel to U.S.

• The U.S. remain a safe travel destination – Safety is most important for Germantravelers

• Great visibility of U.S. destinations in Germany also thanks to Brand USA’s activities

• Many tour operators offer the U.S. as a travel destination

• Many flight connections from several airports in Germany to the U.S.

• The U.S. remain a ‘dream destination’ and represent the "American Dream“

• Close friendship between Germany and the U.S.

• Strong economic and political situation in Germany – no major change expected after the election in September 2017

TRAVEL MARKET


Brand USA’s third travel trade Mega Fam in 2016

TRAVEL MARKET


Why are German Travelers important to Arizona?

German guests spent 24.3 nights in the US (2016) while on vacation and 5.3 nights in Arizona.

• In 2016, 127,823 German travelers visited Arizona.

• Germany is the largest overseas source market.

• Germans like the heat, so they come in summer as well.

PR ACCOMPLISHMENTS AND ACHIEVEMENTS IN FY 16/17




General Public Relations Activities

• KMS promoted Arizona at the Visit USA press night in Munich on December 8, 2016. (9 meetings)

• KMS promoted Arizona at the International Media Market Place on March 7, 2017. (20 meetings)

• KMS promoted Arizona at the ITB in Berlin in March, 2017. (29 meetings)

• KMS promoted Arizona at the Visit USA media breakfast during the ITB. (11 meetings)




• Proactive media calls and story development

• Reactive media assistance and support of editors’ desk research

• Frequent updates of Arizona media material and the Arizona press kit

• Maintenance of Arizona text and photo archive

• Monthly result and media monitoring

• Monthly media coverage evaluation and documentation

• Monthly activity reports




• New design of reports, press releases and newsletters




• Distribution of monthly Arizona press releases

• Distribution of monthly Arizona e-mail newsletters

384 articles were generated throughthe newsletters and news releases

combined media value of $ 5,035,772

• Special success: The German press agency (DPA) took our press release about the 130th anniversary of the Rodeo in Prescott and embedded it into one of their articles. Germany’s most largest media outlets published this text.




• KMS organized 12 press FAM trips

11 individual press trips

1 international group trip

• 50 feature articles were generated through press trips

media value of $ 3,600,540



Total Fiscal Year 2016/2017:

•527 agency generated Arizona articles

•183 print articles

•344 online articles

•Total circulation/visitation of more than 542 million contacts

Agency generated media value of US$ 13.5 million

Highlights:

• Arizona road trip in October 2017 – Mini group Fam trip with up to 3 journalists to

Native American lands.

•Arizona Media Mission in December 2017

to Hamburg, Munich and Zurich (or Vienna)

•Strategic PR activities regarding the new nonstop flight from Condor from Frankfurt to

Phoenix.

FY 17/18:OUTLOOK ON PR ACTIVITIES


Great chance to increase visitation from Germany with new Condor flight

• The German airline Condor starts a new long-haul nonstop flight from Frankfurt to Phoenix in the summer season 2018

• Inaugural flight: May 18, 2018 (2 x week)

• 53 flights until the end of September 2018

• Boeing 767-300 with 259 seats

FY 17/18:OUTLOOK ON PR ACTIVITIES


Please send us all your media information, press kits, newsletters and story ideas and add us to

your media distribution list so that we can promote your region, hotel or services:

Kaus Media Services

Sophienstrasse 6

30159 Hannover

GERMANY

Tel. +49 (0) 511-899 890 25

Email: [email protected]

Web: www.kaus.net

Thank you very much!

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