The Region Hannover and HMTG Release a Brochure

More guests, more overnight stays: Tourism as an economic factor

The Economic Development Agency of the Region Hannover and Hannover Marketing und Tourismus GmbH (HMTG) have published the brochure “Tourism as an Economic Factor in the Region Hannover,” highlighting the importance of the tourism industry to the Region Hannover.

Ulf-Birger Franz (Head of the Economic Affairs Department for the Region Hannover) and Hans Christian Nolte (Managing Director of Hannover Marketing und Tourismus GmbH, from left).

The city is aglow, the air is filled with the scent of mulled wine, and the region’s Christmas markets draw visitors from all over northern Germany. With net revenue of 2.3 billion euros last year, tourism is one of the most significant economic drivers in the Region Hannover. The Region Hannover Economic Development Agency and Hannover Marketing und Tourismus GmbH (HMTG) published the brochure “Tourism as an Economic Factor in the Region Hannover” today (December 16, 2015), thereby highlighting the importance of the tourism industry for the Region Hannover.

“The steady growth in trade shows and conferences, as well as in city tourism, clearly demonstrates that tourism is one of the most successful economic drivers in the Region Hannover,” says Hans Christian Nolte, Managing Director of Hannover Marketing und Tourismus GmbH.

The figures

Tourism as an Economic Factor in the Region Hannover — Download: Brochure (PDF)

The figures are impressive: on average, a guest in the Region Hannover spends 41.10 euros per day and stays for 1.9 days. The hotel industry recorded 2.96 million commercial overnight stays, 230,000 in inns and guesthouses, 360,000 in youth hostels, training and vacation centers, and rehabilitation clinics, and 140,000 at campgrounds. With 1.61 million overnight stays, the surrounding municipalities alone recorded more overnight stays than major cities such as Bremen, Essen, Dortmund, or Bonn. The state capital itself, with 2.08 million overnight stays in 2014, solidified its position as the city with the highest number of overnight stays in Lower Saxony.

“The wide variety of cultural offerings—including music, theater, and the visual arts—as well as sporting events, recreational attractions, and shopping opportunities are driving the rise in tourism numbers,” says Ulf-Birger Franz, Head of Economic Affairs for the Region Hannover.

Over the past ten years, overnight stays in the state capital have risen by 56 percent, and those in the Region Hannover by 54 percent. “With an annual increase in overnight stays of around four percent, Hannover is on par with cities like Leipzig and Nuremberg and even ahead of Cologne and Stuttgart,” says Franz. “The Region Hannover offers significant potential, particularly for the growing number of young budget travelers. Off the beaten path, both the international university city of Hannover and its proximity to regional oases make for a worthwhile destination: wakeboarding on the Blue Lake near Garbsen, for example, or a shopping spree through the small, owner-operated shops in Linden,” says Nolte.

The retail sector benefits most from tourism: tourists in the Region Hannover account for 43.6 percent (1.1 billion euros) of total retail sales, followed by the restaurant industry (24.6 percent/643.8 million euros) and leisure and entertainment (12.2 percent/318.5 million euros).

Added value

Visitors’ spending benefits more than just the retail and restaurant sectors: approximately 30 percent of net revenue is converted into income for employees (value-added ratio). The value-added ratio is a reliable indicator for measuring the productivity of tourism services and for determining the wages and salaries of employees in tourism businesses as well as expenditures on intermediate inputs. Linking the value-added ratio to the net revenue of 1.75 billion euros in the state capital yields direct income from the tourism industry amounting to 522 million euros. In purely mathematical terms, 37,791 people in Hannover can earn their living through tourism—this figure is derived from the tourism-related income equivalent, which can be calculated from the total tourism income and the average primary income per capita.

Foreign demand

“We see significant potential, particularly among international visitors, that we need to capitalize on,” says Franz, looking ahead to the coming years. “To achieve an increase in international arrivals and overnight stays, we need a joint commitment from the business community and the tourism sector.” To intensify marketing efforts abroad, the HMTG is working closely with the “Magic Cities” marketing association of the German National Tourist Board. “The report once again demonstrates the economic power of tourism and, by extension, the significance and appeal of the Region Hannover for tourism in the state of Lower Saxony,” Nolte concludes positively.

The brochure

The Region Hannover commissioned dwif-Consulting GmbH to analyze the economic significance of the tourism industry. The study examined tourism demand, visitor spending at destinations, tourism revenue, beneficiary sectors, as well as income and tax effects. The brochure “Tourism as an Economic Factor in the Hannover Region” can be requested by phone at (0511) 616 23 318 and is available for download here.