Germany's Tourism: New 5-Point Plan Revealed
Economy / Finance

Germany’s Tourism: New 5-Point Plan Revealed

The German government is introducing a five-point plan aimed at bolstering the nation’s tourism sector and enhancing its competitiveness on an international stage. Coordinator for Tourism and Maritime Affairs, Christoph Ploß, has outlined a series of measures designed to alleviate financial burdens on tourism businesses and improve accessibility for travelers.

A key element of the plan focuses on reducing costs for operators, particularly those offering package tours. Contributions to the German Travel Security Fund, which provides support to holidaymakers in the event of supplier insolvency, will be progressively lowered. The current rate of one percent of the insured turnover will decrease to 0.75 percent from September of this year and subsequently to 0.5 percent in November. Officials confirm that package tours will remain fully protected during any insolvency scenarios.

Recognizing the importance of air travel, the initiative also addresses the aviation industry. Incentives for airlines are proposed through a reduction in airport taxes and fees, aiming to attract more routes to and from Germany. Simplifying the visa application process for tourists and business travelers is another priority, with funds already allocated for the digitalization of Schengen visas by 2026, a move expected to benefit the tourism and trade fair sectors.

The plan acknowledges that a supportive environment extends beyond financial considerations. Proposals include greater flexibility in working hours, shifting from daily to weekly maximum working time limits. Furthermore, a permanent reduction in the value-added tax (VAT) for the hospitality sector to seven percent is under consideration, alongside a substantial reduction in bureaucratic documentation and reporting requirements. The government intends to move towards a risk-based approach to enforcement, prioritizing the sanctioning of violations over routine reporting, especially concerning food hygiene documentation within the hospitality industry.

The overall objective is to create a more appealing and competitive tourism landscape in Germany, recognizing that traveler decisions are influenced by a combination of factors including connectivity, service quality and pricing.