THE #1 SOURCE ON CITY TOURISM IN EUROPE

THE #1 SOURCE ON CITY TOURISM IN EUROPE The European Cities Marketing (ECM) Benchmarking Report measures how city tourism in Europe develops on the basis of more than 100 European cities. WHO SHOULD READ THE REPORT? It is essential reading for city tourism professionals, consultants, academics and students. WHAT EXPERTS SAY ABOUT THE REPORT - Unique source of insights on the volume of city tourism - A firm reference tool when benchmarking city tourism - Answering vital market intelligence s needs - Over 100 leading European cities analyzed - Featuring top markets for city tourism - Extended commentary and over 100 graphs and charts - Expert-based analysis of current year assessment of market prospects LEARN ABOUT - The most recent achievements/successes of the leading cities in Europe - The latest performance, development & benchmark of European cities including number of international & domestic bednights - The most attractive cities for inbound visitors from China, France, Germany, Italy, Japan, Russia, Spain, UK or the USA - Source market reviews 2016 - The latest developments of tourism demand in Europe - Bed capacities and occupancies - City Tourism Trends in 2016 for total bednights, international bednights, and bednights in 9 markets - Tourism density in European cities 9 SOURCE MARKETS How has my city performed last year? And in the last 5 years? Did the same happen with my competitors? How did my main source markets perform individually? Are there areas where those markets behaved differently? Where are my opportunities in this sense? Where are my threats? The ECM Benchmarking Report provides me the answers. André Barata Moura, Head of Research, Observatorio de Turismo de Lisboa The ECM Benchmarking Report is a very useful tool. It helps us, as a tourist destination, to understand how we develop and perform compared to other similar European cities. The content and the various graphs in the report are a great help for our internal and external communication. Camilla Ekberg, Project Manager, Malmö Convention Bureau

EUROPEAN BEDNIGHTS IN 2016 CITY TOURISM STATISTICS FROM EUROPEAN CITIES 9 SOURCE MARKETS BEDNIGHTS GENERATED BY ALL FORMS OF PAID ACCOMODATION ESTABLISHMENTS DOMESTIC +1.8% 126 EUROPEAN CITIES TOTAL +1.7% INTERNATIONAL +1.6% BEDNIGHTS BY SOURCE MARKETS (1 = 1 MILLION) 34.5 +1.8% 27.5 +4.1% 25.9 +5.0% TOP 5 CITIES (IN MILLION, IN 2016) L O N D O N P A R I S B E R L I N R O M E B A R C E L O N A 75.1 44.0 31.1 26.9 19.1 TOP 5 CITIES GROWTH RATES AMONG TOP 15 CITIES (BETWEEN 2015 AND 2016) B A R C E L O N A A M S T E R D A M L I S B O N P R A G U E H A M B U R G +8.5% +7.3% +7.2% +5.5% +5.5%

CITY TOURISM AT A GLANCE - EXECUTIVE SUMMARY The 13 th edition of the European Cities Marketing Benchmarking Report includes 126 European cities. This report provides benchmarking insight into bednights sourced from multiple markets in addition to analyses of city tourism compared to national tourism, bed supply, occupancy, and tourism densities. This year, ECM report s cities achieved an average growth rate of 4.8%, which is lower than the last year s growth rate of 5.7%. This decline can be mostly attributed to the continued and substantial decrease in presence of the source markets of Russia, Japan, and Italy. These three source markets accounted for about 23% of reduction of bednights. Additionally, there were no sharp increases in bednights in the other six source markets to offset these decreases, as data has shown in previous years (see chart 8.7). Top Performing Cities The top 5 cities for 2016 look the same as the previous year, besides Barcelona taking back its spot in the top 5 from Madrid. London was able to hold onto its spot as number one in bednights despite a negative growth rate (-3.2%), the second highest negative growth rate behind Paris (-8.2%), which also held onto its spot as number two in bednights. Barcelona reported the highest growth rate out of the top 5 with 8.5%, followed by Berlin with 2.7%, and Rome with 1.9% (see chart 8.5 and table 7.1) Table 1. Destination Total Bednights 2016 2015-16 % change 1 *London 75,069,660-3.2% 2 *Paris 44,016,074-8.2% 3 Berlin 31,067,775 2.7% 4 *Rome 26,935,666 1.9% 5 *Barcelona 19,162,580 8.5% 6 *Madrid 18,097,379 0.8% 7 Prague 16,796,384 5.5% 8 *Vienna 15,760,254 4.1% 9 *Munich 14.027,106-0.2% 10 *Amsterdam 13,834,000 7.3% 11 *Stockholm 13,438,009 3.6% 12 Hamburg 13,331,001 5.5% 13 Istanbul 11,950,300-12.1% 14 Milan 11,257,872-2.0% 15 *Lisbon 9,717,718 7.2% *Refer to cities with different definitions and data rectifications. See Annex for more information.

Notable Changes Milan is ranked 14 this year, which was not included in last year s report due to missing data. Lisbon maintained its spot at number 15 as a result of its continued growth rate. Barcelona (8.5%) had the highest growth rate out of the top 15 cities, followed by Amsterdam (7.3%) which jumped up two spots from the previous year. Istanbul had the greatest decrease in ranking of number of bednights in the top 15 cities with a decrease of 12.1%, the third highest behind Paris and London. Largest Increases and Summary of Decreases The average number of bednights collected by the 126 cities included in the report shows an average growth rate of 4.8%. Although city tourism is still growing, this year s growth is less than the growth we had for each of the previous two years. This deviation from the growth trend is most likely due to such high decreases in bednights in the top performing cities such as London (-3.2%), Paris (-8.2%), and Istanbul (-12.1%). Even the largest increases in the top performing cities such as Barcelona (8.5%), Amsterdam (7.3%) and Prague (5.5%) could not offset the losses of the other major cities. Source Markets Top Markets The top nine source markets (listed in table 2.) saw more decrease from the previous year than increase, which came from France, Italy, Russia, and Japan. Last year, China and Spain accounted for the most increases in bednights and reported a 28.7% and 10.9% increase, respectively. This is vastly different than this year s reported increase of only 3.8% and 1.2% bednights, respectively. Russia continues to be the top declining source market, but has only declined 9.7% over the past year compared to the 30.4% it declined the previous year (see chart 8.7). Cities versus National tourism 2012-2016 The past five years have shown a positive average annual growth rate of bednights in both the ECM report s cities as well as among the EU 28 nations. Even though both groups have an increasing average, the ECM report s cities are growing at a faster rate than those of the EU 28 nations. The difference between these growth rates is 1.2% points, which is slightly higher than the previous year (1 percentage point), marginally widening the gap between the growth rates of the two groups (see chart 11.3). Table 2. Source market development in ECM report cities Source Market Bednights 2016 2015-16 % change 1 United States 34,519,103 1.8% 2 Germany 27,545,858 4.1% 3 United Kingdom 25,919,124 5.0% 4 France 18,391,318-2.5% 5 Italy 16,067,032-6.2% 6 Spain 14,703,123 1.2% 7 China 8,015,715 3.8% 8 Russia 6,720,786-9.7% 9 Japan 6,022,637-7.1%

Bed Capacities 2012-2016 The average capacity of beds was 19,984, which is still heavily skewed by the outlier Berlin (139,700 beds) and other large suppliers of beds such as Prague and Rome, which each account for nearly 100,000 beds (see chart 10.1). The average growth rate of bed capacity for ECM report cities gained momentum with and increase of 0.1 percentage points, putting it at an average of 2.8% growth. The least of the strongest three outliers was only 6 percentage points from the nearest growth rate, indicating that growth rates were steady across all of the cities. Even though 28 cities reported a decrease in bed capacity, only 17 reported a decrease of more than 1% (see chart 10.2). Since 2012, bed capacity grew at an average annual rate of 2.9%. Just 22 cities reported negative average annual growth rates in bed capacities over the last five years, with 10 cities showing average annual decreases of over 1%. Sixteen cities revealed an average annual growth rate of over 5%. Rijeka is still in the lead in increased average annual bed capacities with 27.2% (see chart 10.3). Bed Occupancy 2016 This year s report also includes bed occupancy values in addition to bed capacities. From top 15 cities Barcelona (76.6%) and Rome (75.1%) had the highest bed occupancy rates. They were followed by two Portuguese cities Porto (75.0%) and Sintra (73.1%). Out of the 102 cities that reported bed occupancy rates 61 of them were above the benchmark average of 50.6%. Tourism Densities This year s report follows the same structure of last year s with the adaptation of the tourism density section to cater to seasonality of bednights. Overall, ECM report cities had a considerably higher tourism density in summer (on average 3 bednights per citizen) compared to the other seasons; thus, perceived crowding effects are suggested to be a matter of season. Opatija soared to the top of the density measurements in each of the seasons with the highest density of 52.91 in the summer. Funchal took second place for each of the seasons followed by Lisbon in the spring and fall (5.00 and 5.28, respectively). Amsterdam was third in the winter with 3.53 bednights per citizen and Salzburg was third in summer with 6.39 bednights per citizen.

CITIES IN THE ECM BENCHMARKING REPORT 2017 IN ALPHABETICAL ORDER Aachen Aalborg Aarhus Amsterdam Antwerp Barcelona Basel Belfast Belgrade Bergen Berlin Bern Biarritz Bilbao Bologna Bolzano Bonn Bordeaux Braga Bratislava Bregenz Bremen Bruges Brussels Budapest Cascais Coimbra Cologne Copenhagen Cordoba Darmstadt Dijon Dresden Dubrovnik Düsseldorf Eisenstadt Espoo Evora Faro Faro Florence Frankfurt Funchal Gdnask Geneva Genoa Ghent Gijon Gothenburg Granada Graz Hamburg Hannover Heidelberg Helsinki Innsbruck Istanbul Klagenfurt La Coruña Las Palmas Lausanne Leipzig Leuven Linz Lisbon Ljubljana London Lucerne Luxembourg Lyon Madrid Malaga Malmö Maribor Mechelen Milan Monaco Munich Münster Nicosia Novi Sad Olomouc Olomouc Opatija Oslo Padua Palma de Mallorca Paris Porto Poznan Prague Regensburg Reims Reykjavik Rijeka Rome Salzburg San Sebastian Santa Cruz de Tenerife Santiago de Compostela Saragossa Setubal Seville Sintra Split St.Pölten Stockholm Stuttgart Tallinn Tampere Tarragona Tel Aviv The Hague Toulouse Turin Turku Uppsala Valencia Venice Verona Vicenza Vienna Vilnius Weimar Würzburg Zagreb Zurich 126 EUROPEAN CITIES

TABLE OF CONTENTS TABLE OF CONTENTS 1 Preface: European Cities Marketing Benchmarking Report - 13 th Official Edition... III 2 Editorial - Report Mission... 1 3 Executive Summary... 3 4 Source Market Reviews 2016... 6 5 Scope and Methods of the Report...15 5.1 Main Definitions... 15 5.2 Cities in the Report... 16 5.3 City Benchmark Groups... 16 5.4 Benchmarking Method... 17 6 Top 15 European Cities... 22 6.1 ECM Report Cities 2016 - Top 15 Total Bednights... 23 6.2 Top 15 European Cities - Average Annual Total Bednights Growth 2012-2016... 24 6.3 ECM Report Cities 2016 - Top 15 International Bednights... 25 6.4 Top 15 Cities - Average Annual International Bednights Growth 2012-2016... 26 6.5 Top 15 Cities - Total Bednights Growth 2012-2016... 27 6.6 Top 15 European Cities - International Bednights Growth 2012-2016... 28 7 City Rankings in 2016... 29 8 Trends in 2016... 38 8.1 ECM Report Cities 2015-2016 - Total Bednights (nominal value)... 39 8.2 ECM Report Cities 2015-2016 - Total Bednights (relative change)... 40 8.3 ECM Report Cities 2015-2016 - International Bednights (nominal value)... 41

8.4 ECM Report Cities 2015-2016 - International Bednights (relative change)... 42 8.5 ECM Report Cities Last Year s Growth Performance Total bednights 2016... 43 8.6 ECM Report Cities Last Year s Growth Performance International Bednights... 44 8.7 ECM Source Markets 2016 - Bednights Relative Change... 45 8.8 ECM Report Cities Seasonal Tourism Density (Winter & Spring)... 46 8.9 ECM Report Cities Seasonal Tourism Density (Summer & Fall)... 47 8.10 ECM Report Cities Average Tourism Density... 48 9 Market Developments in 2016... 49 9.1 German Market Last Year s Growth Performance... 50 9.2 German Bednight Volumes and Cities Market Shares in 2016... 51 9.3 Italian Market Last Year s Growth Performance... 52 9.4 Italian Bednight Volumes and Cities Market Shares in 2016... 53 9.5 French Market Last Year s Growth Performance... 54 9.6 French Bednight Volumes and Cities Market Shares in 2016... 55 9.7 Spanish Market Last Year s Growth Performance... 56 9.8 Spanish Bednight Volumes and Cities Market Shares in 2016... 57 9.9 UK Market Last Year s Growth Performance... 58 9.10 UK Market Bednight Volumes and Cities Market Shares in 2016... 59 9.11 USA Market Last Year s Growth Performance... 60 9.12 USA Market Bednight Volumes and Cities Market Shares in 2016... 61 9.13 Japanese Market Last Year s Growth Performance... 62 9.14 Japanese Market Bednight Volumes and Cities Market Shares in 2016... 63 9.15 Russian Market Last Year s Growth Performance... 64 9.16 Russian Market Bednight Volumes and Cities Market Shares in 2016... 65 9.17 Chinese Market Last Year s Growth Performance... 66 9.18 Chinese Market Bednight Volumes and Cities Market Shares in 2016... 67 9.19 Annual Growth 2012-2016... 68

10 Bed Capacity Development... 69 10.1 ECM Report Cities Bed Capacities 2016 (nominal)... 70 10.2 ECM Report Cities Bed Supply Last Year s Growth Performance 2016... 71 10.3 ECM Report Cities Bed Capacities Growth 2012-2016 (percentage)... 72 10.4 ECM Report Cities Bed Occupancy 2016 (percentage)...73 11 European City Tourism 2012-2016... 74 11.1 Cities versus National Tourism Source Markets 2012-2016 (index)... 75 11.2 Cities versus National Tourism Source Markets - Market Volumes 2016... 76 11.3 Cities versus National Tourism Source Markets - Average Annual Growth Rate in International bednights 2012-2016... 77 11.4 Cities versus National Source Markets - Source Markets Relative Size 2016... 78 11.5 Eurostat Economic Indicator and Tourism Demand -Total Bednights 2012-2016... 79 11.6 International Bednights Growth in ECM Report Cities and EU 28 Nations versus National GDP Indicators 2012-2016... 80 12 Premier League Cities... 81 12.1 Total Bednights Average Annual Growth Rate 2012-2016... 82 12.2 International Bednights Average Annual Growth Rate 2012-2016... 83 12.3 Annual Growth Indices - International versus Domestic 2012-2016... 84 12.4 Total Bednights Average Annual Percentage Growth 2012-2016... 85 12.5 Total Bednights Average Annual Nominal Growth 2012-2016... 86 12.6 Last Year s Growth Performance - Total Bednights 2016... 87 12.7 International Bednights Average Annual Percentage Growth 2012-2016... 88 12.8 International Bednights Average Annual Nominal Growth 2012-2016... 89 12.9 Last Year s Growth Performance - International Bednights 2016... 90 12.10 International versus Domestic Bednights 2016... 91 12.11 Source Market Bednights Growth Indices 2012-2016... 92

13 Second Division Cities... 93 13.1 Total Bednights Average Annual Growth Rate 2012-2016... 94 13.2 International Bednights Average Annual Growth Rate 2012-2016... 95 13.3 Annual Growth Indices - International versus Domestic 2012-2016... 96 13.4 Total Bednights Average Annual Percentage Growth 2012-2016... 97 13.5 Total Bednights Average Annual Nominal Growth 2012-2016... 98 13.6 Last Year s Growth Performance - Total Bednights 2016... 99 13.7 International Bednights Average Annual Percentage Growth 2012-2016... 100 13.8 International Bednights Average Annual Nominal Growth 2012-2016... 101 13.9 Last Year s Growth Performance - Total bednights 2016... 102 13.10 International versus Domestic Bednights 2016... 103 13.11 Source Market Bednights Growth Indices 2012-2016... 104 14 Annex... 105 14.1 Data Rectification Procedures... 105 14.2 City Index... 105

REPORT MISSION City tourism organizations need internationally comparable statistical data on the present structure of the industry as well as on historical and future trends. Based on reliable information, strategies and operational plans are implemented, monitored and where necessary, modified in response to feedback from the market. In 1996, the Austrian National Tourist Office (www.austria.info) initiated the development of an internet-based tourism marketing information system TourMIS (www.tourmis.info). In 1998, the two most significant international tourism organization networks in Europe, European Cities Marketing (www.europeancitiesmarketing.com) and the European Travel Commission (www.etc-corporate.org), joined the project and are since then using TourMIS as a platform for exchanging tourism statistics among their members. The TourMIS database consists of various sources, mainly tourism statistics on bednights, arrivals and capacities in European destinations (cities and countries), whose maintenance is carried out in different ways depending on the origin of the data sources but mainly by ECM and ETC members entering their data into the system. The major aim of TourMIS is to provide information and decision support for tourism managers providing online tourism survey data, as well as various tools to transform data into valuable management information. In 2009, TourMIS was awarded the prestigious Jury Prize for Innovation in Tourism Enterprises by the United Nations World Tourism Organization (UNWTO) Ulysses Committee. The present report covers the information needs of city tourism managers and is based on the data collected by TourMIS. The initiative for this report goes back to 2002 when Peter Hansen and Claus Sager at Wonderful Copenhagen (www.visitcopenhagen.dk) developed a standard publication comparing the performances of city tourism destinations in Europe. As a result of this initiative, Hansen and Sager published the first two reports before transferring their concept to European Cities Marketing. Since 2004, European Cities Marketing is the leading body producing the annual European Cities Marketing Benchmarking Report (formerly European Cities Visitors Report). The European Cities Marketing Benchmarking Report (= ECM Report ) has a distinct focus on the strategic and competitive position of European city destinations and thus equips destination managers with important trends and recent developments in the European city tourism business. The prime objective of the ECM Report is to convert complex statistical data to easily accessible and comprehensive managerial information mainly by graphical presentation of charts. The thirteenth official edition of the ECM Report analyses the development of bednights of 126 European city destinations in terms of gaining or losing market share over the years 2012-2016. The recent trends of 9 key source market segments for European city tourism is monitored. For the European Cities Marketing Report 2016-2017, the ECM Editorial Group consisted of following members: Clemens Költringer (Vienna, chairperson), Thomas Deschamps (Paris, vice-chairperson), Charles Boisseau (Paris), Daniëlla Brust-Blumik (Amsterdam), Lone Alletorp Callard (Copenhagen), Reto Helbling (Zurich) Alba Lajusticia (Barcelona), André Barata Moura (Lisbon), Olivier Ponti (Amsterdam), Sophia Quint (Berlin), Ossian Stiernstrand (Gothenburg), Petra Tschöll (Vienna), Ralf Zednik (Munich). The team of MODUL University researchers responsible for the analysis and drafting of this year s ECM Report are: Dr. Irem Önder, Prof. Dr. Karl Wöber, Dr. Bozana Zekan, Rachel Roehm, and Görkem Demirkol. For the outline of the report, the authors were predominantly following the proven concept of previous reports.

ORDER YOUR COPY NOW! GET IN TOUCH WITH EUROPEAN CITIES MARKETING TO - Order your copy of the ECM Benchmarking Report 2016-2017 «Light Package» Including comprehensive city tourism benchmarks for more than 100 destinations in Europe; factors that influenced tourism in 2016; visualization of City Tourism Trends 2016 for total bednights, international bednights in 9 markets, for only 490 (free for all ECM members). - Order your copy of the ECM Benchmarking Report 2016-2017 «Professional Package» The Professional Package includes the elements stated in the «ECM Benchmarking Report Light Package» + the complete dataset (Excel and Powerpoint files as a background to your analysis and presentations) for only 990 (free for all ECM members). The ECM Benchmarking Report gives us valuable information about the performance of a city on many levels. It helps us to monitor and identify our closest competitors as well as the development of source markets in the respective cities. One of the main advantages for us is the possibility to analyse the development of market shares in our source markets as these key indicators are indispensable when evaluating our marketing strategy each year. Clemens Költringer, Marketing Analyst, Strategic Destination Development, Vienna Tourist Board TO ORDER YOUR COPY OF THE REPORT www.europeancitiesmarketing.com FIND OUT MORE ABOUT EUROPEAN CITIES MARKETING www.europeancitiesmarketing.com - flavie@europeancitiesmarketing.com