Incoming Tourism to Germany

EDITION 2005 Incoming Tourism to Germany FACTS AND FIGURES 2004 www.germany-tourism.de German National Tourist Board Germany

CONTENTS INTRODUCTION 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. Introduction 3 International travel 2004 in arrivals 4 Economic importance of tourism 5 Growth outlook for Europe/ use of the internet in Europe 6 Forms of transport/hotel chains in Europe 7 Incoming tourism in Germany 8 Incoming tourism importance and breakdown 9 Seasonal breakdown/accommodation capacities 10 Types of accommodation/camping 11 City breaks 12 Business travel 13 Source markets for incoming tourism 14 Reasons for travel among Europeans 15 Holiday preferences among Europeans 16 Source markets in Northwest/ Southwest/Northeast Europe 17 Source markets in Southeast Europe/travel arrangements 18 America/Israel source markets 19 US source market 20 Asian source market 21 Other source markets/ GNTB market research 22 GNTB/Sources 23 PRODUCTION CREDITS Published by: German National Tourist Board (GNTB) Beethovenstrasse 69 60325 Frankfurt am Main Germany Tel.: +49 (0)69 974 640 Fax: +49 (0)69 751 903 Email: mafo@d-z-t.com Internet: www.germany-tourism.de Design: Querformat, Frankfurt am Main Printed by: Akzidenzdruck, 64807 Dieburg Germany Translation: LingServe Ltd 1 (GB) 2005 To coincide with the GTM 2005 in Wiesbaden, the GNTB is publishing a summary of key facts and figures for incoming tourism to Germany. This publication is aimed at providing the GNTB s partners with a regular and up-to-date annual overview of the most important market research results for the previous travel year. This edition is based on studies by the WTO, the WTTC, the World Travel Monitors, data supplied by the Federal Statistical Office, international and national associations of tourism service providers, and studies carried out by the GNTB s own business planning and market research department. In order to be able to react promptly to the constant changes in the economic climate and to make effective use of the potential it offers for the German travel industry, it is vital to observe the market in a targeted and forward-thinking manner. Contents include International tourism and its development Development of tourism within Europe German incoming, breakdown and structures Source markets for incoming travel to Germany and their development Frankfurt, May 2005 2 EDITION 2005 EDITION 2005 3

INTERNATIONAL TOURISM 2004 IN ARRIVALS ACCORDING TO THE WTO, 760.0 MILLION INTERNATIONAL ARRIVALS WERE RECORDED IN 2004 ECONOMIC IMPORTANCE OF TOURISM CONTRIBUTION OF TRAVEL & TOURISM ECONOMY 2004 414 153 124 35 Arrivals in millions 500 33 400 300 200 100 Direct and indirect effects of tourism Tourism Satellite Account (TSA) Rank Country US-$ bn The Travel & Tourism Economy identifies 1 USA 1,244.1 the broad impact of travel demand 2 Japan 407.9 as it flows-through the economy. It 3 Germany 270.8 consists of goods and services produced for visitors and other activities 4 France 257.1 strongly dependent on Travel & Tourism 5 UK 218.5 spending, such as retailing and construction, which would decline if travel 6 Spain 199.1 7 Italy 197.0 demand reduced. 8 China 183.7 9 Canada 107.7 10 Australia 71.8 Source: TSA / WTTC 2004 (2) Europe +4 % Asia/Pacific +29 % America +10 % Middle East +20 % Africa +7 % 0 CONTRIBUTION OF TRAVEL & TOURISM INDUSTRY 2004 Arrivals in millions Growth in 2004 (provisional) Source: WTO 2005 (1) INTERNATIONAL ARRIVALS IN MILLIONS SOUTHERN/WESTERN EUROPE STILL IN THE LEAD 152 139 Arrivals in millions 200 150 Direct effects of tourism Rank Country US-$ bn 1 USA 482.7 2 Japan 159.5 3 France 103.0 4 Italy 84.7 5 Germany 84.5 6 UK 82.5 7 Spain 76.8 8 China 40.1 9 Canada 35.7 10 Australia 32.1 Tourism Satellite Account (TSA) The Travel & Tourism Industry indentifies the narrower economic impact - goods and services directly for visitors, such as accommodation and transport. It is the narrower perspective of our activity which can be compared with other industries in the economy. Source: TSA / WTTC 2004 (2) 100 EMPLOYEES/CAPITAL INVESTMENT (CI) IN THE TRAVEL & TOURISM ECONOMY IN 2004 Southern Europe/ Mediterranean Western Europe (incl. Germany) Central/ Eastern Europe 1990 2000 2004 (provisional) Source: WTO 2005 (1) 73 Northern Europe 51 50 0 Rank Country Employees (million) 1 China 62.3 2 India 24.5 3 USA 16.7 4 Indonesia 8.5 5 Japan 6.5 6 Brasil 5.4 7 Russia 4.9 8 Germany 4.1 9 Spain 3.8 10 France 3.7 Source: TSA / WTTC 2004 (2) Rank Country CI in US-$ bn 1 USA 228.5 2 China 80.2 3 Japan 44.6 4 Spain 43.4 5 UK 34.1 6 Germany 31.6 7 France 30.7 8 Italy 26.9 9 Australia 16.8 10 South Korea 16.7 Source: TSA / WTTC 2004 (2) 4 WORLD WORLD 5

GROWTH OUTLOOK FOR EUROPE/ INTERNET USERS IN EUROPE GROWTH OUTLOOK FOR EUROPE MODAL SPLIT/HOTEL CHAINS IN EUROPE BREAKDOWN OF INTERNATIONAL TRAVEL BY EUROPEANS ACCORDING TO FORM OF TRANSPORT IN MILLIONS 2004 Tourism is one of the global growth industries of the future, with 3% forecast growth per annum to Europe Travel by air and road are the dominant categories for travel throughout Europe Arrivals Arrivals Arrivals Annual Market Market in millions in millions in millions growth % share share 1995 2010 2020 1995-2020 1995 2020 Europe 338.4 527.3 717.0 3.0 59.8 45.9 America 108.9 190.4 282.3 3.9 19.3 18.1 East Asia/ Pacific 81.4 195.2 397.2 6.5 14.4 25.4 Africa 20.2 47.0 77.3 5.5 3.6 5.0 Middle East 12.4 35.9 68.5 7.1 2.2 4.4 South Asia 4.2 10.6 18.8 6.2 0.7 1.2 World 565.4 1,006.4 1,561.1 4.1 100.0 100.0 Travel by car 109.3 million 31% Other 6.5 million 2% Boat Travel 11.4 million 3% Coach Travel 37.2 million 10% Rail Travel 25.1 million 7% Air Travel 166.9 million 47% Worldwide growth 2004: +10% Source: WTO 2003 (1) COMPARISON OF EUROPEAN HOTEL CAPACITIES AND HOTEL CHAINS Source: WTM 2005 (5) COUNTRIES WITH THE HIGHEST NUMBER OF INTERNET USERS IN EUROPE Ranking Country No. of users (million) % of population 1 Germany 46.5 56.2 2 Great Britain 35.3 59.0 3 Italy 28.6 48.8 4 France 25.0 41.5 5 Spain 14.1 32.5 6 Netherlands 10.8 66.2 7 Poland 9.0 23.5 8 Sweden 6.7 74.3 9 Russia 6.0 4.2 10 Switzerland 4.6 61.6 Total 1-10 186.6 Total Europe 230.9 31.6 Rooms Rooms in Share of chain total chain hotels hotels in % Italy 869,000 49,221 5.7 Germany 806,500 168,261 20.9 France 603,600 218,229 36.2 Spain 540,000 121,549 22.5 Great Britain 468,000 188,090 40.1 Greece 316,700 19,914 6.3 Austria 285,000 18,332 6.4 Turkey 183,000 15,497 8.5 Russia 180,000 5,119 2.8 Switzerland 133,000 16,783 12.6 Europe total 5,331,700 1,067,603 20.0 By comparison: the proportion of rooms in hotel chains in the USA is 70-75%, but it is also high in Northern Europe, e.g. 50.2% in Norway, 43.4% in Finland and 41.7% in Sweden. Source: Travel Research International, 2003 (3) Source: Internet World Stats 2005 (12) 6 EUROPE EUROPE 7

INCOMING TOURISM IN GERMANY INCOMING TOURISM IMPORTANCE AND BREAKDOWN GERMANY Capital Berlin Federal states 16 of which: Non-city states 13 City states 3 Member of WTO since 1976 Surface (1,000 sq. km) 357 Population (million) 82.5 Gross domestic product (2004 in Euro bn) 2,016.1 GDP per capita 2004 24,438 Real GDP growth (in %) 2002 0.1 2003-0.1 2004 1.6 Economic importance of travel and tourism 1 Gross economic output of the travel and tourism industry 185 bn Value creation of the travel and tourism sector 94 bn Direct proportion* of GDP 3.2% International arrivals 2003 International arrivals in thousands (incoming) 20,137 Arrivals per 100 of the population 21 Travel and tourism in Germany 2004 Overnight stays by domestic travellers (thousands) 293,395 Domestic growth -1.1% Overnight stays by international travellers (thousands) 41,746 International growth 8.8% Total overnight stays (thousands) 338,588 Total growth 0.1% of which hotel/guesthouse Overnight stays by domestic travellers (thousands) 158,416 Overnight stays by international travellers (thousands) 36,631 Total overnight stays (thousands) 195,047 Number of rooms 899,297 Utilisation of available beds** 34.2% Utilisation of available hotel rooms 2 61.0% Outgoing travel 2004 Trips taken by Germans in thousands 273,800 of which trips abroad in thousands 73,800 No. of foreign trips per 100 of the population 62 Travel and tourism balance of payments 4 Expenditure on travel and tourism 58.1 bn Income from travel and tourism 21.0 bn International balance of payments for travel and tourism -37.2 bn 1 GWS on behalf of the Federal Ministry of Economics and Labour 2003, TSA-Base year 2000 2 IHA 2005 3 WTM 2005 4 Deutsche Bundesbank 2005 preliminary * excl. business travel, travel to visit friends and family, public investment ** Combined figures for hotels and guesthouses according to german Federal Statistical Office Source: WTO 2004 (1), Federal Statistical Office 2005 (4/6) BREAKDOWN OF ALL ARRIVALS IN GERMANY IN 2004 BY CONTINENT 83 per cent of arrivals in Germany in 2004 were domestic trips and 17 per cent were incoming trips Europe 13% OVERNIGHT STAYS IN GERMANY BY FOREIGN VISITORS IN 2004 BY FEDERAL STATE 2 Hamburg 1,231,251 3 Bremen 304,001 4,508,437 Lower Saxony 6,736,658 North Rhine- Westphalia Saarland 250,084 Total overnight stays: 45.4 million America 2% Rhineland- Palatinate Asia 2% Hesse 3 6,297,601 2,586,576 5,030,363 Baden-Wuerttemberg 1,037,554 Schleswig- Holstein 2 Africa, Australia, New Zealand and Oceania <1% 353,028 Saxony-Anhalt 523,061 Thuringia Mecklenburg- Western 625,435 Pomerania 10,425,590 Bavaria Brandenburg 1 551,538 1,087,822 Domestic 83% Saxony 1 Berlin 4,224,825 8 GERMANY GERMANY 9

SEASONAL BREAKDOWN/ CAPACITIES ACCOMMODATION SEASONAL BREAKDOWN OF OVERNIGHT STAYS BY FOREIGN VISITORS TRAVELLING TO GERMANY TYPES OF ACCOMMODATION/CAMPING OVERNIGHT STAYS IN GERMANY BY FOREIGN VISITORS IN 2004 BY TYPE OF ACCOMMODATION 2003 2004 6,000,000 Hotels and bed & breakfast hotels are extremely important in the incoming sector (73% share of the market) 5,000,000 Hotels 57% 4,000,000 3,000,000 Campsites 7% Other 13% Guesthouses 2% Inns 5% Bed & breakfast hotels 16% 2,000,000 January February March April May June July August September October November December HOLIDAY CAMPSITES IN GERMANY IN 2004 (TOTAL OF 2,566 SITES*) CAPACITIES IN GERMANY BY TYPE OF ACCOMMODATION Accommodation providers by type of accommodation in 2004 and share of the overall market for each type of accommodation Accommodation capacity Establishments in operation Share Type of accommodation (as of July 2004) in % Hotels 13,078 24.7 Bed & breakfast hotels 8,687 16.4 Inns 9,901 18.7 Guesthouses 5,244 9.9 Traditional accommodation providers 36,910 69.7 Leisure, recreational and training centres 2,631 5.0 Holiday centres 87 0.2 Holiday homes or apartments 10,638 20.1 Holiday cottages, youth hostels 1,617 3.1 Preventative medical clinics and rehabilitation clinics 1,044 2.0 All accommodation types 52,967* 100.0 * including 40 boarding houses (recorded for the first time in 2004) With an additional 3.1 million overnight stays by foreign visitors in 2004, campsites are an important part of the German travel industry s portfolio Federal state Market share Market share of sites of overnight stays by foreign visitors in Federal state Bavaria 17% 15% Lower Saxony 12% 8% Baden-Wuerttemberg 11% 23% Rhineland-Palatinate 11% 43% Schleswig-Holstein 9% 4% North Rhine-Westphalia 8% 18% Hesse 7% 15% Brandenburg 7% 6% Mecklenburg-Western Pomerania 7% 3% Saxony 4% 11% Saxony-Anhalt 3% 9% Thuringia 2% 8% Saarland 1% 37% Berlin < 1% < 1% Hamburg/Bremen < 1% < 1% Germany total 100% * as of July 2004 10 GERMANY GERMANY 11

CITY BREAKS BUSINESS TRAVEL BREAKDOWN OF OVERNIGHT STAYS IN 2004 BY FOREIGN VISITORS IN GERMAN TOWNS AND CITIES ACCORDING TO SIZE GERMANY AS A TRADE FAIR DESTINATION 2004 49% of overnight stays by foreign visitors are in towns and cities with a population of more than 100,000 more than 100,000 49% Internationally, Germany is the number one destination for trade fair travel Total Trade fairs (international) 153 Exhibitors 165,000 International exhibitors 87,000 Rented space 6,600,000 m 2 Visitors 9,650,000 of which international visitors approx. 1,850,000* 10,000 100,000 26% less than 10,000 25% * as of 2003 Source: AUMA 2005 provisional (8) TRADE FAIR LOCATIONS/EXHIBITORS TOP TOWNS AND CITIES IN GERMANY IN 2004 (OVERNIGHTS STAYS) The 10 largest cities have a 43% market share of all overnight stays by foreign visitors in Germany Berlin Munich 4,224,825 32%* 3,448,561 45 %* The six largest trade fair and exhibition centres in Germany in 2004 were: Location Indoor area Outdoor area Ranking within (gross in m 2 ) (gross in m 2 ) Europe Hanover 495,265 57,880 1 Frankfurt/Main 324,023 83,163 3 Cologne 286,000 52,000 4 Düsseldorf 234,400 32,500 5 Munich 160,000 210,000 10 Berlin 160,000 100,000 11 Frankfurt/Main Cologne Hamburg Düsseldorf 2,252,508 52 %* 1,331,182 35 %* 1,231,251 21 %* 1,059,796 42 %* THE GERMAN CONFERENCE AND CONGRESS MARKET Germany is ranked third throughout Europe Source: AUMA 2003/2004 (8) Stuttgart Nuremberg Dresden Heidelberg * The percentage figures refer to the number of overnight stays by foreign visitors as a percentage of the total number of overnight stays (in each respective city) 12 GERMANY 633,272 28 %* 559,556 30%* 390,487 15 %* 370,797 41 %* 0 1,000,000 2,000,000 3,000,000 4,000,000 Source: Regional Statistical Offices 2005 (11/6) Data Events 1.3 million Average duration 1.8 days Event days 2.3 million Total attendees 69.0 million of which foreign visitors 9.7 million Overnight stays 67.6 million Revenue 49.3 billion Conference venues 10,935 of which hotels 10,148 congress centres 420 higher education establishments 327 airports 40 Rooms 60,500 Source: GCB/ghh 2003 (9) GERMANY 13

SOURCE MARKETS FOR INCOMING TOURISM BREAKDOWN OF OVERNIGHT STAYS IN GERMANY BY CONTINENT REASONS FOR TRAVEL AMONG EUROPEANS REASONS FOR TRAVEL AMONG EUROPEANS TRAVELLING ABROAD AND TO GERMANY IN 2004 Europe has a growth rate of +6.8% in 2004 and an increasing market share Europe 74% Reason for travel Europe Germany Europe Germany 2004 2004 2004 2004 in millions in millions Percentage Percentage Holidays 244.6 15.2 68 52 Short breaks of 1-3 nights 41.6 5.4 11 19 Longer holidays of 4+ nights 202.4 9.8 57 33 Visits to friends or relatives 25.4 2.6 7 11 Business trips 50.3 8.8 14 28 Other travel 35.6 3.1 11 11 America 12% Asia 10% Australia 1% Africa 1% Other 2% Total travel 356.4 29.1 100 100 Source: WTM 2005 (5) TOP 20 SOURCE MARKETS FOR GERMANY BY NUMBER OF OVERNIGHT STAYS IN 2004 Germany has a variety of source markets Netherlands USA Great Britain Switzerland Italy France Belgium Austria Denmark Sweden Japan Spain Poland Russia PR of China & Hong Kong Czech Republic Arab Gulf States Norway Australia/ NZ / Oc Hungary 14 GERMANY Change 2004/2003 8.0 +2.2% 4.3 +15.1% 3.8 +8.4% 2.9 +11.4% 2.5 +6.5% 2.0 +10.0% 1.9 +6.6% 1.9 +6.7% 1.6 +4.2% 1.4 +5.1% 1.3 +9.8% 1.2 +18.6% 1.0 +13.7% 0.8 +5.6% 0.8 +36.5% 0.6 +4.0% 0.5 +15.1% 0.5 +7.3% 0.4 +21.5% 0.4 +7.4% million 0.0 2.0 4.0 6.0 8.0 BREAKDOWN OF EUROPEAN BUSINESS TRAVEL VOLUME INTO DIFFERENT TYPES OF BUSINESS TRIPS TO GERMANY IN 2004 Total volume: 8.2 million trips Traditional business trips 58% Trade fairs and exhibitions 21% Incentive travel 2% Conferences/congresses 19% Source: WTM 2005 (5) EUROPEANS IN GERMANY 15

HOLIDAY PREFERENCES AMONG EUROPEANS RANKING OF HOLIDAY CONTENTS OF EUROPEANS IN GERMANY 2004 AS A PERCENTAGE SOURCE MARKETS IN NORTHWEST/ SOUTHWEST/NORTHEAST EUROPE SOURCE MARKETS IN NORTHWEST AND SOUTHWEST EUROPE City breaks 22% 30% 25% 20% 15% Winter sports 2% General tours 25% 10% Event-related 5% holidays 4% With a total of 22.7 million overnight stays in 2004, the source markets of Northwest and Southwest Europe have a 50% share of all overnight stays in Germany by foreign visitors. Overnight stays Overnight stays % of holidays Population 1995* 2004 taken abroad 1) in millions 2) Northwest Europe 9,574,762 14,096,636 72.1 87.4 Netherlands 5,055,629 8,021,092 103.7 16.3 Great Britain 2,952,366 3,767,880 56.7 60.3 Belgium 1,346,954 1,941,318 107.4 10.3 Luxembourg 219,813 366,346 183.6 0.5 Holidays in the countryside 13% Health & fitness holidays 1% Southwest Europe 5,520,699 8.583,729 30.3 166.2 Switzerland 1,664,793 2,926,323 135.6 7.4 Italy 1,656,995 2,476,530 27.4 58.1 France 1,557,746 1,964,765 27.1 60.4 Spain 641,165 1,216,111 19.9 40.3 Seaside/lakeside holidays 7% Sports holidays 3% Total 15,095,461 22,680,365 253.6 Holidays in the mountains 5% Source: WTM 2005 (5) 1) 2003 data 2) 2004 data * excl. camping Source: Federal Statistical Office 2005 (4/6) HOLIDAY CONTENT FOR EUROPEANS ON CITY BREAKS IN EUROPE AND GERMANY SOURCE MARKETS IN NORTHEAST EUROPE/RUSSIA Content of Total foreign Rank city breaks* city breaks 2004 by Europeans (frequency in %) Sightseeing 65 1 Enjoying food and drink 41 3 Shopping 40 4 Enjoying 44 2 atmosphere/ambience Visiting museums 38 5 Visiting exhibitions 22 7 Visiting parks/green areas 23 6 Nightlife 20 8 City breaks Rank to Germany by Europeans (frequency in %) 63 1 43 2 43 3 40 4 37 5 29 6 28 7 18 8 With just under 5.9 million overnight stays in 2004, the source markets of Northern and Eastern Europe/Russia have a 13 % share of all overnight stays in Germany by foreign visitors. Overnight stays Overnight stays % of holidays Population 1995* 2004 taken abroad 1) in millions 2) Northeast 4,554,910 5.889.601 14,4 213,9 Europe/Russia Denmark 1,063,488 1,582,548 94.1 5.4 Sweden 953,851 1,374,284 58.8 9.0 Norway 398,131 484,871 75.1 4.6 Finland 267,745 407,207 79.3 5.2 Poland 927,002 952,862 13.3 38.6 Russia 764,737 822,932 4.5 143.8 Baltic States 179,956 264,897 21.8 7.3 * Trips involving one or more overnight stay; excluding the motive of visiting friends or relatives Source: WTM 2005 (5) 1) 2003 data 2) 2004 data *excl. camping Source: Federal Statistical Office 2005 (4/6) 16 EUROPEANS IN GERMANY EUROPEANS IN GERMANY 17

SOURCE MARKETS IN SOUTHEAST EUROPE/TRAVEL ARRANGEMENTS SOURCE MARKETS FOR AMERICA/ISRAEL SOURCE MARKETS IN SOUTHEAST EUROPE SOURCE MARKETS FOR AMERICA/ISRAEL With a total of 2.9 million overnight stays in 2004, the source markets of Southeast Europe have just under a 7% share of all overnight stays in Germany by foreign visitors. Overnight stays Overnight stays % of holidays Population 1995* 2004 taken abroad 1) in millions 2) Southeast Europe 2,131,683 2,866,254 46.7 35.8 Austria 1,286,725 1,899,613 87.1 8.2 Czech Republic 474,836 550,949 37.3 10.2 Hungary 370,122 415,692 26.0 10.0 Slovenia No figures available No figures available 78.3 2.0 Slovakia No figures available No figures available 31.6 5.4 1) 2003 data 2) 2004 data * excl. camping Source: Federal Statistical Office 2005 (4/6) Overnight stays Overnight stays Population 1995* 2004 in millions 1) Total 4,236,692 5,602,346 855.2 USA 3,186,396 4,321,385 293.0 Canada 266,142 409,132 32.5 Central/South America 506,538 575,210 523.5 America 3,959,076 5,305,727 849.0 Israel 277,616 296,619 6.2 1) 2004 data * excl. camping MAIN TRAVEL DESTINATIONS FOR US AMERICANS IN EUROPE IN 2003 Total travel from the USA to Europe 2003: 11.4 million trips Great Britain 23 % TRAVEL ARRANGEMENTS MADE BY EUROPEANS TAKING A HOLIDAY IN GERMANY IN 2004 France Germany 12 % 17 % 59% of Europeans booked services relating to their stay in Germany in advance Italy/ Malta 10 % No booking 41% Package tour 8% Netherlands/Belgium/ Luxembourg 7 % 0 % 5 % 10 % 15 % 20 % Individual booking through service provider 34% Partial package tour 17% Source: WTM 2005 (5) Multiple answers possible, i.e. one trip may have been to a number of countries Source: WTM 2004 (5) The majority of American visitors visit at least one other country Multiple responses Number of countries visited Total Holidays VFR* Business trips in % in % in % in % Germany only 44 21 65 49 Germany plus 1 country 26 24 22 30 Germany plus 2 countries 14 21 8 12 Germany plus 3 countries 7 14 2 5 Germany plus 4 countries or more 9 20 3 4 * Trips to visit friends and relatives Source: In-flight survey/ipk 2002 (7) 18 EUROPEANS IN GERMANY US AMERICANS IN GERMANY 19

US SOURCE MARKET ASIAN SOURCE MARKETS HOW ACCOMMODATION IN GERMANY WAS BOOKED JAPAN IS STILL THE MOST IMPORTANT ASIAN SOURCE MARKET FOR GERMANY Travel agency 15 % 21 % 1,286.1 1,183.4 1,500 1,200 Accommodation provider 13 % 19 % 789.4 900 600 Corporate travel office 14 % 10 % Internet 6 % share 0 % 5 % 10 % 15 % 20 % Holiday travel All travel Source: WTM 2004 (5) Japan +8.7% 291.7 China +171.0% 116.1 Overnight stays 1994 Overnight stays 2004 280.8 South Korea +142.0% 94.7 174.2 Taiwan +84.0% 300 0 thousands HOLIDAY ACTIVITIES OF US AMERICANS IN GERMANY IN 2003 CHINESE AND JAPENESE ARE AMONGST THE HIGHEST SPENDERS FOR TAX-FREE SHOPPING IN GERMANY Sightseeing 90 % Sales in million Historical places of interest Museums/ art exhibitions 40 % 46 % Russia 63.9 309 1 Eating good food 33 % China 45.2 196 Shopping 32 % Japan 28.1 355 Entertainment Group sightseeing tours Visiting festivals 27 % 19 % 14 % USA Switzerland 22.9 243 17.4 218 Nightlife 10 % 0 10 20 30 40 50 60 70 Walking, cycling 10 % 0 % 20 % 40 % 60 % 80 % 1 Average spending per shopping visit Source: Global Refund 2005 (13) Multiple selection of categories is possible Source: WTM 2004 (5) 20 US AMERICANS IN GERMANY ASIANS IN GERMANY 21

OTHER SOURCE MARKETS/ GNTB MARKET RESEARCH GNTB/SOURCES SOURCE MARKETS ASIA, AFRICA AND AUSTRALIA Overnight stays Overnight stays 1995* 2004 Total 3,805,761 5,203,207 Japan 1,306,499 1,286,058 China/Hongkong 333,266 789,429 South Korea 165,055 280,847 Asia 3,161,772 4,355,154 Africa 349,473 423,742 Australia, New Zealand and 294,516 424,311 Oceania Other countries 2,201,835 3,132,079 *excl. camping Source: Federal Statistical Office 2004 (4) GNTB MARKET RESEARCH In order to get the right answers, you first need to ask the right questions. And this is more important than ever in times of continual market changes. The GNTB s market research is focused on forward-thinking, networked surveys aimed at providing its partners and other companies within the German travel industry with cutting-edge analysis for a professional marketing strategy. GERMAN NATIONAL TOURIST BOARD Working on behalf of the federal government, the German National Tourist Board, based in Frankfurt am Main, has been planning, coordinating and implementing activities for marketing Germany abroad for more than 50 years. The aims of the GNTB with its 6 regional managements and its 29 foreign representative offices/sales and marketing agencies include: Strengthening the economic position of Germany Increasing the volume of tourism Increasing tourism exports. As a registered non-profit organisation, the GNTB is committed to transparency and efficiency rather than commercial gain. The GNTB s market research activities focus mainly on: Continuous monitoring of all incoming source markets Research for theme years with 2 to 3 years lead time Systematic study of the ten key core source markets for Germany in a five-year cycle, along with a combined image and efficiency survey Theme, trend and special studies addressing specific target groups/potential markets SOURCES 1 WTO World Tourism Organization, World Tourism Barometer 1/2005, Tourism Market Trends 2003 Edition, Spain 2003-2005 2 TSA/ WTTC World Travel and Tourism Council, The 2004 Travel and Tourism Economic Research, Country League Tables, UK 2004 3 Travel Research International, The European Hotel Industry, 2003 Edition, UK 2003 4 Federal Statistical Office, Annual Reports and Monthly Reports 1995 to 2004, Wiesbaden 2005 5 IPK-International, World Travel Monitor/D.K. Shifflet-Performance/ Monitor, Malta 2005, USA 2004 6 GNTB Market Research, Frankfurt 2005 7 U.S. Department of Commerce, In-Flight Survey 2001, Washington/Malta 2002 8 Association of the German Trade Fair Industry (AUMA), Messeplatz Deutschland (Germany as a Trade Fair Destination), Berlin 2003 to 2005 9 GCB/ghh consult/gntb, Der Deutsche Tagungs- und Kongressmarkt (The German Conference and Congress Market), Frankfurt 2003 10 German International Hotel Association (IHA)/Deloitte, Hotelmarkt Deutschland (The German Hotel Market), Industry Report 2005, Berlin 2005 11 Regional Statistical Offices 2004/2005 12 Internet World Stats, USA 2005 13 Global Refund Germany, Düsseldorf 2005 22 WORLD 23

German National Tourist Board (GNTB) Beethovenstraße 69 60325 Frankfurt am Main Germany Tel.: +49 (0)69 974 640 Fax: +49 (0)69 751 903 Email: info@d-z-t.com Internet: www.germany-tourism.de