The tourism industry in Austria is dynamic and is recording more vacation trips (almost 80%) than business trips. The country is been attracting almost double the number of foreign tourists and is generating more tourism-based revenue. 6.5% of share it produced to the country’s GDP in 2018. The growing number of tourism is boosting the hotel and accommodation sector in the region. Demand for hotel accommodation segment has increased by almost 10% between 2013-2018, rising from 86 million available room to almost 95 million. Austria’s tourism and hotel industries remained left affected by the seasonality and are registering growth numbers year on year. International travelers are dominating the demand and are typically accounting for around three-quarters of a whole hotel business. Chain hotels account for 14% of the total hotel properties currently operating in Austria.
Key Market Trends
Increasing Investments in the Accommodation Sector is Going to Drive the Market
According to TOPHOTELPROJECTS GmbH, the Alpine nation of Austria is adapting to catch the growing demand, by adding more than 12,000 rooms to the accommodation industry in the coming years to accommodate the rising number of visitors. According to its online database, 90 hotel projects are currently in the development pipeline in Austria, 62% of which are categorized as either first-class or luxury segments. Around 29 hotels are slated to be opened in 2020, which will add more than 4,000 rooms to the supply chain. Another 21 openings are scheduled for 2021 whereas around 9 for 2022. Out of all the openings, 27 hotels alone are going to be added in Austria’s capital city, Vienna, adding more than 5,500 rooms.
The Rising Number of Overnight stays in Austria's Provincial Capitals Are Creating High Demand for More Hotels
According to Statistik Austria, the total number of overnight stays reached 149.8 million which indicated a 3.7% growth. Since 2000, the overall arrivals in Austrian cities have more than doubled, and 96% rise was recorded. Throughout the whole country, 70% growth in arrivals and 32% of overnight stays were recorded. The major tourist arrivals were observed to 9 cities and their share to the total arrivals to the cities was 5% more than that of in 2010 and the total number of overnight stays was increased to 16% in 2018 from 11% in 2010. Vienna attracted a total of 16.5 million overnight stays in 2018, of which 945,000 visited in February alone.
Competitive Landscape
AccorHotels has been offering the largest portfolio across all types of service tiers. The upper-midscale and luxury hotels are more in demand in the region than the others. The service apartments are gaining more significance in recent times and are forecasted to record a great share of the segment in the future.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
This product will be delivered within 2 business days.
Table of Contents
Methodology
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