Vienna tourism director: 'We have a cost crisis, not a demand crisis'

Vienna is enjoying a booming summer tourism season, with July and August proving to be the most lucrative months for the city. This resilience is notable given global economic uncertainties and elevated jet fuel costs, which have affected travel from certain regions.

Norbert Kettner, Vienna's tourism director, acknowledges that guests from the Middle East are down significantly, but emphasizes that no market has completely collapsed. He notes a "cost crisis" rather than a demand crisis, as airlines grapple with jet fuel prices that remain 27 percent higher than before the Iran crisis. The concern is that airlines might reduce flight connections if they cannot pass these costs onto ticket prices.

However, Vienna is seeing a strong comeback from Germany, a market previously considered a "problem child." Visitor numbers from Germany have increased by 12 percent across all accommodation categories, with a remarkable 54 percent surge in the five-star hotel segment. This positive trend offers a welcome surprise, counterbalancing declines from other regions.

To compensate for fewer visitors from the Middle East, Vienna's marketing efforts have shifted. Campaigns are now focusing more on nearby European markets, and a new initiative in the meetings and conventions sector emphasizes "trust, security, and reliability" – key messages for potential organizers in uncertain times. Despite the challenges, Kettner remains optimistic, with bookings for the summer period matching last year's levels and a significant international guest proportion traditionally present in July and August.