Tourism in South Tyrol: 5 billion euros and pressing environmental issues!

Tourism in South Tyrol: 5 billion euros and pressing environmental issues!

Tourism in South Tyrol is proving to be an indispensable economic force, generating added value of 2.859 billion euros in 2022. For 2024, this result is expected to increase to 3 billion euros. These exciting developments were recently published in an projection by the HGV (Hotel and Restaurant Association) and presented to the public in the ATHESIA newspaper. According to HGV-Pinzger, the sector is under ongoing pressure to justify itself, which highlights the need for evidence of the benefits of tourism. This is particularly important in order to adequately represent the economic significance, as it is based on comprehensive national accounting data. However, there is criticism that some aspects, such as the net profit of tourism companies and the use of subsidies of around 70 million euros annually, are not taken into account.

The current share of tourism in the total value added in South Tyrol is also 11.5 percent. Within this framework, almost 1 billion euros flow annually into the modernization and expansion of local companies. This has a positive impact on the construction industry. It should be noted, however, that the so-called Bed Construction Acceleration Ordinance of 2022 made a total of 34,000 new beds possible over a period of three years. However, critics warn against over-investment in accommodation capacity, which has not only economic but also ecological consequences.

Growth vs. sustainability

There are increasing public concerns about the negative impact that the tourism sector has on the environment. Aspects such as traffic, noise and rising prices are the focus of critical debates. Given these challenges, the HGV is asked whether a reduction in tourism could potentially benefit other sectors, such as health and education. A proactive re-evaluation of tourism practices could help to better find the balance between growth and sustainability.

Another aspect is the need to produce an extrapolation of the industry's climate impact in order to focus on climate protection. A comprehensive analysis by the Federal Environment Agency shows that the German tourism industry is an important industry with a gross value added of almost 124 billion euros in 2019. Over 2.8 million people work in this sector and demand is influenced by numerous factors, with climatic conditions playing a role.

Climate change and the need for adaptation

Climate change has already begun to alter meteorological conditions in coastal regions, which is also affecting tourism. In Germany there are various offers in which health tourism, active holidays, cultural trips and business trips can be easily combined. In order to meet the challenges of climate change, adaptation measures are necessary. The federal and state governments offer funding programs to support climate adaptation in tourism and encourage more offerings that can be used all year round.

The discussion about long-term climate risks shows that there are significant uncertainties until the middle of the century. Overall, the data gaps in monitoring the tourism sector must be closed in order to create a well-founded basis for decision-making. The topics of sustainability and climate change are increasingly becoming the focus of the development of the tourism sector in South Tyrol and beyond.

This shows that despite the positive economic outlook, there is an urgent need for action to set the course for future-oriented and environmentally friendly development.

For more information on the climate impacts and the structure of the tourism industry, you can download the comprehensive analyzes of the Federal Environment Agency as well as the results of the HGV see.