Bavaria as a tourist destination: many advantages for businesses

Bavaria is Germany's number one tourism state and the second strongest in Germany in terms of GDP - an excellent example of how tourism can be considered a valid indicator of the attractiveness of a business location. The analysis of tourism reveals important factors for companies - for example the reputation of the region, the infrastructure, the quality of life, good networks, secure investments and stable political conditions. Companies in Bavaria benefit from this: far beyond the boundaries of the gastronomy and hospitality sector, right into industry.

If you look for key factors that determine a company's success in current business literature, you will repeatedly come across aspects such as strategy, employees, operations, marketing and finance. The reason for this is obvious - factors such as these are easy to measure, which is why they are often referred to as “hard” success factors. However, one crucial aspect is often neglected: the location of the respective company.

For example, with Adidas and Puma in Herzogenaurach, the Dassler brothers built on the leather and shoe processing that had already made Franconia famous beyond the region in the 19th century. But how do you make such “soft” location factor tangible? In contrast to the hard success factors, they are difficult to measure and are often subject to subjective assessments: e.g. the image of cities and regions or local cultural offerings.

Tourism as a location indicator

In the case of the “location” factor, one possible answer is tourism. This is because it is easy to quantify and therefore allows valid conclusions to be drawn about the “hard” location factors that are decisive for companies. For example, 69 % of respondents to a study by the German Institute for Tourism Research stated that lively tourism creates a positive image in the world. 74 % responded that it promotes the local economy, 55 % rated it as a positive sign in terms of regional infrastructure and 58 % saw positive effects on the labor market - not to mention employer attractiveness in view of an obviously high quality of life. 

Tourism as a location indicator

In the case of the “location” factor, one possible answer is tourism. This is because it is easy to quantify and therefore allows valid conclusions to be drawn about the “hard” location factors that are decisive for companies. For example, 69 % of respondents to a study by the German Institute for Tourism Research stated that lively tourism creates a positive image in the world. 74 % responded that it promotes the local economy, 55 % rated it as a positive sign in terms of regional infrastructure and 58 % saw positive effects on the labor market - not to mention employer attractiveness in view of an obviously high quality of life. 

Economically strong regions such as Bavaria underline the validity of tourism as a location-related factor: in 2024, the federal state set new records with over 102.7 million overnight stays and around 40.6 million guests. The Bavarian tourism industry benefits just as much from the variety of services and infrastructure as it does from the landscape and nature - but investment security and political stability also play into the hands of Germany's largest federal state. 

Bavaria's international tourism strategy

It is no wonder that tourism here has enjoyed increasing investment in recent years. Bavaria is focusing in particular on the trend towards sustainable and digitally supported tourism, which can be seen in innovative hotels that combine ecology with digital innovations. 

Examples of this include 

 - the “Green Energy Hotel” in the Allgäu region

- the multi-award-winning “Kranzbach” near Garmisch-Partenkirchen or 

- pioneers such as the “Alpenhotel Sonne” - one of the first hotels in Bavaria to receive gold certification for sustainable construction.

Pilot projects such as these clearly demonstrate the close link between tourism growth and technological and ecological innovation.

Another key cornerstone of the Bavarian tourism strategy is major international events, from sport to music. Events such as the 2024 European Football Championships or the 2025 Champions League final attract worldwide attention, as do football matches of the US NFL and the annual Challenge Roth, the second most important triathlon competition in the world with a cross-media reach of 342 million people. There are also concerts by top international acts such as Coldplay, Taylor Swift and Adele - the latter even had a temporary arena built in 2024 for ten concerts with a total of 730,000 spectators. In cities such as Munich, Nuremberg and Augsburg in particular, events like these led to a significant increase in visitor numbers. Munich alone recorded growth of 8.8 % in 2024. 

Significant share of economic output

Rural regions in Bavaria, on the other hand, are benefiting from a growing interest in nature-oriented, active vacation experiences. Wellness, hiking and cycling tourism are particularly popular. The Allgäu, Altmühltal and Berchtesgadener Land regions in particular recorded double-digit growth rates. In Bad Füssing, Germany's most-visited spa resort, the number of overnight stays rose to over two million for the first time in 2024; in Berchtesgadener Land, tourism now accounts for around 15 % of the region's income, according to the tourism association.

The last point in particular shows once again that tourism has an economic impact that goes far beyond the hotel and restaurant industry. The year 2024 was a new record year for Bavaria's tourism industry! Never before have so many people vacationed in Bavaria as last year. The gross value added in Bavarian tourism amounted to 28.2 billion euros in 2019, which corresponded to around 4.9 % of total economic output. In addition, more than 548,000 people were employed directly or indirectly in tourism in 2024 - people who are dependent on services and products from every conceivable industry as solvent customers, both locally and regionally.

Numerous advantages for businesses

And this is not the only benefit for local companies. Business and congress trips also make Bavaria a hub for international business networks. The state capital, for example, recorded a 6 % increase in international business travel in 2024 compared to the previous year - driven by trade fairs, international events and excellent infrastructure. Nuremberg also benefited from this trend: With 71 events and around 930,000 visitors in 2024 - an increase of 29 % compared to the previous year - the city is one of the leading business locations in southern Germany. However, smaller locations such as Messe Augsburg also receive well over 400,000 visitors a year - over 90 % of them in a business context.

These developments clearly show that Bavaria combines tradition and innovation in a very special way. Whether through sustainable hotel projects, business networks or international events, Bavaria is becoming increasingly attractive for vacation guests, companies and investors. Companies benefit from this far beyond the tourism industry - from an unbeatable quality of life, which can be a decisive factor for employer branding, to infrastructural advantages that enable easy networking with the whole world.