Austria's Tourism Must Become More International

In a European comparison, Italy and Switzerland are in a similar situation. Regarding the average daily rate for hotel rooms (ADR, Average Daily Rate), Spain (plus 6.1 percent), CEE (plus 3.6 percent), Greece (plus 3.2 percent), Portugal (plus 2.9 percent), and the Nordic countries (plus 2.3 percent) are doing significantly better. The United Kingdom balances at plus/minus zero.

Goal: Internationalization instead of regular guests

"We are in a structural change, which means we have to deal with our product," said Kraus-Winkler with a view to the next generation, who have grown up with digitalization. "This has an impact on the offer structure, on the price ranges, on the employment structure, and on value creation."

Austria still benefits from a high proportion of regular guests, which varies between 40 and 83 percent depending on the market of origin. "We need internationalization," emphasized the industry spokesperson on Tuesday in front of journalists in Vienna. On the one hand, international guests spend more on additional services; on the other hand, increased internationalization can cushion the weakened demand from some countries due to the economic and geopolitical situation.

"Wolfsburg is dead"

How significantly economic downturns impact the hotel business can be seen at the location of the German headquarters of VW. Business trips have been reduced. "At the moment, Wolfsburg is dead," said Kraus-Winkler. The demand at the Ritz-Carlton there is correspondingly weakened. "You can see what happens when an industry gets into trouble."

The tourism sector must deal with accommodation types and bed capacities. "For example, commercial holiday apartments are very strong and have increased their capacities extremely; 4- and 5-star hotels have moderate growth, and the demand for camping is getting stronger," reported the tourism expert. "All others have virtually negative results, calculated over the year, except during the high season in summer."

Tourism: "We have enough beds"

Since the pandemic, businesses have been under "extreme pressure" economically, emphasized Kraus-Winkler, referring to high inflation and increased interest rates. "Adjusted for price, tourism revenues are 15.5 percent below the level of 2019," the federal sector chairwoman referred to figures from 2024.

In addition to internationalization, the off-seasons must also be strengthened to increase competitiveness and value creation. "You can't have year-round tourism everywhere, but where it is possible, it is certainly good." Not all businesses will survive the current structural change. A cleanup here and there is not a bad thing, said Kraus-Winkler. "We have enough beds."

(APA/Red.)

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