City tourism a growth driver during the crisis
The study presentation in Berlin (from left to right) together with Burkhard Kieker (visitBerlin-CEO), Sybille von Obernitz (senator of economics), Ulrike Rockmann (president of the statistic department Berlin-Brandenburg) and Vladimir Preveden (Roland Berger)
Roland Berger study: only one-third of European capital cities have a tourism strategy in place
City tourism has developed into an engine of economic growth in Europe in recent years. Vienna is well ahead of the game here, taking undisputed first place in conference-related tourism. Capital cities that have developed and implemented concrete tourism concepts in recent years have performed particularly well: Vienna, Amsterdam, Berlin, London and others. Vienna shares fourth place in the overall rankings with Berlin, behind Stockholm but ahead of Rome. Top of the table is Paris, followed by Amsterdam. These are the results of a new study by Roland Berger Strategy Consultants entitled "European Capital City Tourism", which looks at 24 European capitals.
"Economic crises have a much less drastic impact on city tourism than other areas, according to our findings. Tourism is a key engine for overall economic growth – especially tourism to capital cities," says Vladimir Preveden, author of the study and Partner in the Vienna office of Roland Berger Strategy Consultants. To quote some figures, average gross domestic product (GDP) in the countries in the study fell by 4.3% during the crisis in 2009, while tourism to capital cities fell by just 3.5%. The year after that, GDP showed moderate growth while European capitals enjoyed an increase of 6.8% in the total number of overnight stays.
Overnight stays
London and Paris lead the ranking in terms of the total number of overnight stays in 2010: 48.7 million in London and 35.8 million in Paris. They are followed by Berlin (20.8 million), Rome (20.4 million), Madrid (15.2 million) and Prague (12.1 million). Vienna comes sixth with 1.7 million overnight stays. The strongest growth between 2005 and 2010 was experienced by Berlin (+7%), Stockholm (+5.7%) and Ljubljana (+5.2%). Vienna grew by 4.3% in the same period. "Cities such as Vienna, Berlin, Amsterdam and London have developed a clear strategy and positioning. This approach has clearly paid off: since 2005, the number of people arriving in those cities and the number of overnight stays there have shown a markedly better improvement than in other cities," says Christoph Schlager, Consultant in Roland Berger's Vienna office and co-author of the study. "In cities enjoying strong growth in tourism, marketing and actions directed at a home audience are also particularly important. The local population must have a positive attitude toward visitors, otherwise the best advertising in the world is useless at the end of the day." Surprisingly, only 7 of the 24 cities in the study – less than a third – have tourism concepts in place.
Bed capacity
Changes in the number of available beds are a good indicator of the level of confidence private investors place in the market. More beds do not automatically mean higher prices and better occupancy rates, however. Preveden notes: "Take Berlin. There are plenty of hotel beds but many of them remain empty. Low room prices also mean that many Berlin hotels are on the verge of bankruptcy." Paris and London perform much better, and lead the ranking in terms of revenue per available room. Vienna comes in sixth, above Istanbul and behind Stockholm and below the overall average. "Paris and London show the way forward. They achieve the highest room prices and the best occupancy rates. These two factors are correlated, as we found time and again during the study. Vienna shows a structural deficit in this area. In our view, it has some catching up to do," says Preveden. Another key factor in achieving growth is the mix of guests. "The number of international guests, particularly guests from outside Europe, is a key success factor. It also indicates diversification and a broad positioning on the global market." In Vienna, international visitors make up 77% of guests, including 19% from outside Europe. By comparison, last year Prague welcomed 90% international visitors (18% from outside Europe), London 79% (39%), Zurich – more relevant for tourism than Swiss capital Bern – 77% (29%) and Paris 63% (28%).
Vienna: No. 1 destination for conferences
Vienna is the top destination for conferences. It grew by a further 7% between 2004 and 2009. Paris and Berlin follow in the ranking. The study shows a direct link between the number of direct flights to a city and the number of conferences it hosts. According to the study, a city must have direct flights from at least 60 different locations to make it as a conference destination. Increasing the number of direct connections above 180 does not have a further positive effect on tourism. Vienna Airport can be reached non-stop from around 130 cities (summer flight schedule 2011).
London and Paris are the most accessible cities in Europe by air. That is partly thanks to the low-cost carriers, which over the last decade have become an important engine for growth in city tourism. "Cities that lack an airport hub will have problems participating in the general growth trend in city tourism," explains Preveden.
For Vienna to remain one of the top addresses for European city tourism, it needs to hone its distinctive profile. "International accessibility must be improved, including the public transit network. Vienna needs to promote its different areas and districts, not just the classic tourist attractions such as Schönbrunn Palace, the Prater and St Stephen's. Different areas will also contribute to the image of the city and represent it in the future," predicts Preveden.
City tourism has developed into an engine of economic growth in Europe in recent years. Vienna is well ahead of the game here, taking undisputed first place in conference-related tourism. Capital cities that have developed and implemented concrete tourism concepts in recent years have performed particularly well: Vienna, Amsterdam, Berlin, London and others. Vienna shares fourth place in the overall rankings with Berlin, behind Stockholm but ahead of Rome. Top of the table is Paris, followed by Amsterdam. These are the results of a new study by Roland Berger Strategy Consultants entitled "European Capital City Tourism", which looks at 24 European capitals.
"Economic crises have a much less drastic impact on city tourism than other areas, according to our findings. Tourism is a key engine for overall economic growth – especially tourism to capital cities," says Vladimir Preveden, author of the study and Partner in the Vienna office of Roland Berger Strategy Consultants. To quote some figures, average gross domestic product (GDP) in the countries in the study fell by 4.3% during the crisis in 2009, while tourism to capital cities fell by just 3.5%. The year after that, GDP showed moderate growth while European capitals enjoyed an increase of 6.8% in the total number of overnight stays.
Overnight stays
London and Paris lead the ranking in terms of the total number of overnight stays in 2010: 48.7 million in London and 35.8 million in Paris. They are followed by Berlin (20.8 million), Rome (20.4 million), Madrid (15.2 million) and Prague (12.1 million). Vienna comes sixth with 1.7 million overnight stays. The strongest growth between 2005 and 2010 was experienced by Berlin (+7%), Stockholm (+5.7%) and Ljubljana (+5.2%). Vienna grew by 4.3% in the same period. "Cities such as Vienna, Berlin, Amsterdam and London have developed a clear strategy and positioning. This approach has clearly paid off: since 2005, the number of people arriving in those cities and the number of overnight stays there have shown a markedly better improvement than in other cities," says Christoph Schlager, Consultant in Roland Berger's Vienna office and co-author of the study. "In cities enjoying strong growth in tourism, marketing and actions directed at a home audience are also particularly important. The local population must have a positive attitude toward visitors, otherwise the best advertising in the world is useless at the end of the day." Surprisingly, only 7 of the 24 cities in the study – less than a third – have tourism concepts in place.
Bed capacity
Changes in the number of available beds are a good indicator of the level of confidence private investors place in the market. More beds do not automatically mean higher prices and better occupancy rates, however. Preveden notes: "Take Berlin. There are plenty of hotel beds but many of them remain empty. Low room prices also mean that many Berlin hotels are on the verge of bankruptcy." Paris and London perform much better, and lead the ranking in terms of revenue per available room. Vienna comes in sixth, above Istanbul and behind Stockholm and below the overall average. "Paris and London show the way forward. They achieve the highest room prices and the best occupancy rates. These two factors are correlated, as we found time and again during the study. Vienna shows a structural deficit in this area. In our view, it has some catching up to do," says Preveden. Another key factor in achieving growth is the mix of guests. "The number of international guests, particularly guests from outside Europe, is a key success factor. It also indicates diversification and a broad positioning on the global market." In Vienna, international visitors make up 77% of guests, including 19% from outside Europe. By comparison, last year Prague welcomed 90% international visitors (18% from outside Europe), London 79% (39%), Zurich – more relevant for tourism than Swiss capital Bern – 77% (29%) and Paris 63% (28%).
Vienna: No. 1 destination for conferences
Vienna is the top destination for conferences. It grew by a further 7% between 2004 and 2009. Paris and Berlin follow in the ranking. The study shows a direct link between the number of direct flights to a city and the number of conferences it hosts. According to the study, a city must have direct flights from at least 60 different locations to make it as a conference destination. Increasing the number of direct connections above 180 does not have a further positive effect on tourism. Vienna Airport can be reached non-stop from around 130 cities (summer flight schedule 2011).
London and Paris are the most accessible cities in Europe by air. That is partly thanks to the low-cost carriers, which over the last decade have become an important engine for growth in city tourism. "Cities that lack an airport hub will have problems participating in the general growth trend in city tourism," explains Preveden.
For Vienna to remain one of the top addresses for European city tourism, it needs to hone its distinctive profile. "International accessibility must be improved, including the public transit network. Vienna needs to promote its different areas and districts, not just the classic tourist attractions such as Schönbrunn Palace, the Prater and St Stephen's. Different areas will also contribute to the image of the city and represent it in the future," predicts Preveden.
More than 40 journalists attended the press conference in Berlins Waldorf Astoria
