Early February, in an article released on the Austrian Economic Chambers (WKO) website, president of the WKO, Brigitte Jank, celebrated a milestone in Vienna, lauding the hotel and tourism industry for breaking the records set in 2010.
Increase in Number of Overnight Stays and Revenue in Vienna hotels
Despite the flagging economy and increasing concern over the Eurozone debt, Vienna’s tourism industry is booming. Overnight hotel stays in Austria’s capital city reached 11.4 million - a 5% increase from 2010, which was already a record-breaking year. Revenue from overnight stays also increased, trumping the 2010 figures and even those from 2008, the year of the European Football Championships, which was hosted by Austria.
The exact figures for 2011 are to be released mid-February, but the numbers alone from January to November 2011 show that revenue generated from hotel stays amounted to €446.7 million, up 9.2% from the previous year. According to Vienna Tourism director Norbert Kettner, due to a very good month in December, with an additional 8.5% overnight stays, a record in turnover is also expected.
Stable Occupancy Rate, Yet More Hotel Rooms to Come in Vienna
Hotels throughout the year had an occupancy rate of 71%, but the number of hotel beds rose considerably last year. A total of 4,300 more beds were added through hotel construction in 2011, bringing Vienna’s total number of hotel beds to just under 56,000.
Martin Schlick, chairman of the hotel sector at the WKO, sees these figures as a little disheartening. “Revenue may have risen by almost 9%,” he said, “but the number of beds also rose by about 9%. So there’s not much left over for the individual business.”
In addition, more hotels will open next year, adding another 2,000 beds to the tally. A total of around 61,500 available beds is planned by 2013. Following this, the industry then needs to raise its hotel prices to be competitive with international standards. According to tourism expert Egon Smeral of Vienna’s Economic Research Institute (WIFO), Vienna’s hotel rates are distinctly lower than those of comparable European cities. However, the average rate rose by 4.3% in the first 11 months of last year compared to the same period in 2010.
Coming Up: Klimt and Vienna Congresses 2012
The year 2012 is yet another ‘theme year’ for Vienna: Gustav Klimt, Jugendstil artist of the fin de siècle, would have celebrated his 150th birthday this year. Many businesses, and indeed the hotel and tourist industry, will be cashing in on the ‘Klimt boom’. The city of Vienna is putting on a show of commemorative exhibitions, releasing special coins; even Klimt edition ‘dessert creations’ will be served up to honor the famous artist’s birthday.
Vienna is also becoming a popular destination for international congresses and meetings. Christian Mutlechner, director of the Vienna Convention Bureau, says that 2011 was a better year than 2010 for congresses. In the Austria Center Vienna alone there are seven top congresses on the program this year, with a total of 61,000 visitors expected and more than 223,000 overnight stays booked so far. Other big international conferences to be held in the City of Music are the European Congress of Radiology in March and the European Respiratory Society Annual Congress - ERS to be held at the Messe Wien in September.
Usually held during off-peak season times, congresses help extend the normal tourist season for the industry. Congress visitors also boost Vienna’s weak sector of individual business travelers – which Smeral sites as being one of the reasons for Vienna’s low hotel prices.
Flocking to Vienna: Where the Tourists Come From
Perhaps its number one ranking as 'best city to live in' is bringing the tourists to Vienna. For the third year in a row, Vienna was ranked No. 1 for Quality of Living in the Mercer Worldwide Quality of Living Study 2011.
Visitors to Vienna last year mainly traveled from neighboring countries, like Germany (+3%), Italy (+5%), Switzerland (+12%), with a surprising increase of Spanish tourists (+17%). A marked increase was also seen in the number of Russian tourists (+36%). The percentage of Austrians visiting their capital city from the provinces dropped by 7% compared to 2010.
Looking Ahead in the Vienna Tourist Industry
“Vienna’s tourism industry should be proud – and with reason,” writes Brigitte Jank. But whether the year 2011 will be the year of records or whether it will be outdone by 2012 still remains to be seen. The development of the world economy will eventually be the deciding factor.
It is encouraging that the industry assumes positive development in years to come, says Jank. This will be established through the new hotel projects that are in planning or already underway; it will increase the range of services; and eventually lead to internationally competitive prices.
MyHue McGowran - A published print and online journalist, Mý Huê is currently a self-employed translator, copywriter, editor. She lives in Vienna, ...
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