Prodinger study makes total value creation visible – using the example of a model hotel in the Salzburg region
The hotel industry therefore makes a significant contribution to strengthening the local community and strengthening the image of the destination. Without this development engine, there is a risk of an exodus of the younger working population, particularly in decentralized locations, and a subsequent downward spiral
Thomas Reisenzahn, managing director of the Prodinger tourism consultancy
Vienna (OTS) – The hotel industry is a potent economic engine for the regions. This is once again underlined by a current value creation analysis by the Prodinger consulting group. Using the example of a model hotel in the Salzburg region, the diverse impulses – from the overall value creation to the regional effects – come from a successfully managed business.
For every euro of sales, around 68 cents additional flow into the region
The starting point for the analysis is a company with a net annual turnover of 6.2 million euros. The company is positioned in the upscale “4 star superior” category, has 50 rooms with 100 guest beds and employs an average of 35 people per year. The total added value of this model company reached around 3.7 million euros in the 2022/23 operating year. Of this, 190,000 euros went directly to the municipality and tourism association. The regional economy benefited with a (net) amount of 1.7 million from the hotel’s guests (55.6 euros per night). This sum shows the significant importance of the company for the local economy. The regional investments are around 170,000 euros per year and are made within a radius of 80 km. In addition, the living costs of the 26 employees living in the community amount to 58,000 euros. Regional clubs and organizations are supported with an average of 2,000 to 3,000 euros per year.
Direct value creation by hotel guests
The daily expenses of guests (excluding travel, including accommodation) amount to an average of 144 euros in summer and 176 euros in winter. Excluding accommodation, guest expenses amount to 135.4 euros in summer and 165.4 euros in winter. However, spending by guests in the upscale travel segment (4 star superior) is now around 60 percent higher. They are therefore 135.4 euros in summer and 165.4 euros in winter. Since the assumed 30,000 overnight stays are spread evenly between summer and winter, an average of 150 euros per guest overnight stay can be expected.
Further added value is generated through the use of goods and materials and ongoing maintenance. Around 80 percent of the goods used, especially in the gastronomic sector, come from the region. When it comes to repairs, 90 percent of the expenses go to local partners.
As Thomas Reisenzahn, managing director of Prodinger Tourismusberatung, summarizes, the direct and indirect value creation effects lead to immediate prosperity gains in the communities. They create the conditions for an efficient infrastructure and a high quality of life. “The hotel industry therefore makes a significant contribution to strengthening the local community and strengthening the image of the destination. Without this development engine, there is a risk of an exodus of the younger working population, particularly in decentralized locations, and a subsequent downward spiral
“.
According to Reisenzahn, the study shows that despite some of the negative effects of tourism (traffic and environmental pollution) that are discussed in public, the positive economic effects outweigh them.
Questions & Contact:
Prodinger tourism advice
Marco Riederer
m. wheeler@prodinger.at