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Germany Poised for Economic Boost from Euro 2024, Ifo Institute Predicts

4 weeks ago
thedialog
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Germany Poised for Economic Boost

Photo: The UEFA EURO 2024 opening ceremony took place at Munich Football Arena prior to the first game between hosts Germany and Scotland. UEFA via Getty Images

 

Germany, the host of the Euro 2024 football tournament, is set to see a significant economic boost, with an anticipated one billion euro ($1.07 billion) influx from foreign tourists, according to a forecast by the Ifo institute released on Friday. 

The Ifo institute, one of Germany’s leading economic research bodies, has projected that the influx of visitors for Euro 2024 could contribute approximately 0.1% to the country’s economic output in the second quarter of the year. 

The hospitality and food retail sectors are expected to be the primary beneficiaries of this economic upturn. “However, the effect is only short-lived, so that exports of services due to returning tourists are likely to fall again after the end of the European Championship in the third quarter and remain the same on balance,” said Ifo researcher Gerome Wolf. 

 

Drawing comparisons to the 2006 FIFA World Cup, which Germany also hosted, the institute expects more than 600,000 additional foreign tourists and about 1.5 million extra overnight stays during the championship. 

These figures underscore the temporary yet substantial impact that major international sporting events can have on the host nation’s economy. 

The German Economy Ministry also anticipates a positive but short-term boost in consumer-facing sectors, which have faced subdued retail sales this year. However, they do not expect the impact to match the economic surge experienced during the 2006 World Cup. 

 

The performance of Germany’s national football team also plays a crucial role in determining the overall economic impact of the tournament. A strong performance by the host team typically boosts local spending and extends tourist stays. 

The championship kicked off with Germany’s match against Scotland on Friday evening, setting the stage for a month-long event that will draw fans from across Europe and beyond. 

 

In preparation for the tournament, Germany has undertaken significant infrastructure improvements and promotional activities to attract and accommodate the influx of tourists. Cities hosting the matches have been enhancing their facilities, increasing hotel capacities, and improving transport links to ensure a smooth experience for visitors. 

Local businesses, especially those in the hospitality and food sectors, are gearing up for a busy period. Hotels, restaurants, and bars are preparing for the increased demand, with many reporting that bookings have surged since the tournament was announced. 

 

Merchandise sales are another area expected to see a significant boost. From team jerseys to memorabilia, retailers are stocking up on official merchandise, anticipating high demand from both domestic and international fans. 

Efforts include promoting public transport, increasing recycling initiatives, and ensuring that event venues meet high environmental standards. 

As the tournament begins, all eyes will be on Germany, not just for the football matches but also for how the country manages the economic and logistical challenges of hosting such a large-scale event. 

 

The success of Euro 2024 could serve as a blueprint for future host nations, demonstrating the potential economic benefits and the importance of careful planning and execution. 

For now, the excitement is building, and Germany is ready to welcome the world to what promises to be an unforgettable celebration of football.