Forecasts of Overnight Stays as well as Revenue and Real Gross Value Added of the Accommodation and Food Service Sector by Federal Provinces
After a strong winter season in 2022-23, tourism in Austria continues to recover from the COVID-19 pandemic. In the second and third quarter of 2023, a return to pre-pandemic tourism trends is evident in all federal provinces. According to the WIFO forecast, the number of tourism overnight stays in Austria will increase by a total of +7.6 percent in the second quarter of 2023 compared to the previous year. The return of international guests as well as domestic demand remaining at a high level will have a positive impact not only on the development of overnight stays, but also on that of nominal revenue. For the second quarter of 2023, an increase in the nominal advance sales tax receipts (UVA) of accommodation and food service sectors of around 10.9 percent is forecasted. Gross value-added growth of 3.6 percent is expected in the accommodation and food service activities sector in the second quarter of 2023. In the third quarter of 2023, year-on-year growth in overnight stays is estimated at 2.3 percent and nominal advance sales tax receipts are expected to increase by 5.8 percent. Due to continued high production costs, price-adjusted gross value added is expected to stagnate (–0.2 percent).