The Munich economists agree: Despite the rush of travelling football fans, the expected economic effect of the European Championship remains small.
The European Football Championship will bring higher sales for hotels and restaurants in Germany – but according to the Ifo Institute, it is unlikely to have a major economic effect.
In their published statement, the Munich-based economists assume that spending by visiting football fans could increase German economic output in the second quarter by 0.1 percent, or one billion euros.
After the European Championships, service exports would then fall again and would probably remain the same overall, expects Ifo researcher Gerome Wolf. “Service exports” are the services that Germans provide to foreigners. These include hotel stays and other expenses incurred by foreign fans in Germany.
“From an overall economic perspective, the effects of this type of major event are rather small, apart from tourism,” said Timo Wollmershäuser, head of the Ifo economic forecasts. “At least that is what the experience with the World Cup in 2006 suggests.”
Source: Stern
