Luxembourg
Tourism directly contributed to 1.2% of Luxembourg’s GDP and provided 38 617 direct jobs in 2019, 8.3% of total employment. Travel exports represented 5.0% of total service exports in 2019. In 2020, tourism jobs remained relatively stable at 38 336 jobs, but declined to 7.6% of total employment. The share of services exports fell to 4.0%.
In 2021, 853 000 tourists (international and domestic) were recorded in registered tourism accommodation. International visitors usually comprise 90% of total visitors. There was a rebound in international tourists in 2021 to 756 000, but they still remained 27.3% below 2019 levels. Luxembourg’s main source markets in 2021 were its neighbouring countries: Belgium (20.0% of nights), the Netherlands (16.0%), Germany (16.2%) and France (12.6%).
A total of 2.1 million visitor nights were recorded in 2021. This was a 40% increase in nights compared to 2020, however, still 24% below pre-pandemic levels. International nights hit 1.8 million (up 51% from 2020), and domestic tourism was 303 000 overnights (down 1% from 2020).
Luxembourg expects tourism to return to 2019 levels in 2023 or 2024.
Tourism is part of the Ministry of Economy, within a General Directorate for Tourism (DGT). In addition to regulating the sector, it grants aid to accommodation businesses, associations, local authorities and other interests. The main objectives are to increase the quality of the tourism offer and the quality of life.
In addition, the DGT pursues a policy to promote and optimise the national tourism offer. It works on developing tourism in various ways by creating standards, professionalising marketing and maintaining close relations with international partners.
Luxembourg for Tourism (LfT) is an Economic Interest Group created in December 2015, with the primary task of marketing and promoting Luxembourg as a destination. Along with the government, Regional Offices for Tourism (ORT), professional associations and the private sector co-finance LfT. Regional offices are tasked with co-ordinating local interests in developing the regional tourism offer. The capital, Luxembourg City, has its own structure, the Luxembourg City Tourist Office, while the Luxembourg Convention Bureau (LCB) is the designated body for developing the business events sector.
The budget voted by the General Directorate for Tourism of the Ministry of Economy was EUR 23.0 million in 2020, EUR 22.2 million in 2021, and EUR 30.9 million in 2022. The following financial contributions are an integral part of the DGT budget:
Contribution to large-scale tourism projects and initiatives organised by tourist boards and other interests: EUR 2.9 million in 2020, EUR 3.1 million in 2021, and EUR 3.0 million in 2022.
Contribution to the costs of the Luxembourg for Tourism Economic Interest Group (GIE) of EUR 4 million in 2020, EUR 4.4 million in 2021, and EUR 5.1 million in 2022.
Source: OECD, adapted from the Ministry of Economy, 2022.
Due to the COVID-19 pandemic, the General Directorate for Tourism, in close consultation with the sector, drew up a detailed recovery plan to support leisure tourism and the business events sector. Plans included the “Lëtzebuerg - Dat ass Vakanz!” (Luxembourg - That's a holiday) promotional strategy and the creation of a label to promote health and safety measures implemented across the events sector.
Actions to tackle the consequences of the crisis included:
Aid for businesses: Multiple aid measures totalling over EUR 500 million were implemented to support SMEs. These aid packages were extended into 2022 for tourism, events, culture, entertainment and hospitality businesses.
Enhancement and support of domestic tourism: Charters were put in place to promote the implementation of quality and health and safety protocols that both slowed down the spread of the virus and provided businesses with visibility among the general public.
The “Lëtzebuerg, dat ass Vakanz” campaign (2022): Multiple innovative projects were brought together under the campaign, aimed at residents, cross-border commuters and foreign tourists to make them more aware of Luxembourg’s tourist attractions. Outputs included: the “Guide for one day” initiative (172 guided tours and 1 081 participants); the “Vëlosummer” (see box below); the Movewecarry.lu initiative (1 018 pieces of luggage transported free of charge); the new culinary project “Vakanz genéissen” and the VisitLuxembourg application that is continuously expanded.
The “Safe to serve” campaign: A series of initiatives aimed at preserving the health and safety of staff and customers in the hospitality sector while respecting hospitality and conviviality, supported by the Chamber of Commerce. Adherence to this charter guarantees customers a high level of health and safety, designed to create reassurance when visiting restaurants or cafés.
The challenges to supporting recovery and development include digitalisation, sustainability, innovative tourism products, transparency of the offer (particularly in the sale of accommodation), rural tourism accommodation, professionalisation of tourism structures, and reliable statistics.
In 2021 discussions were conducted on the positioning of Luxembourg as a destination. These discussions also considered the potential effects of the pandemic on tourist activities in the medium and long term. A strategic process was initiated to refine, reframe and develop the major priorities of the tourism policy. In order to involve the various stakeholders, the General Directorate for Tourism organised theme-based work groups with selected stakeholders, residents and municipal representatives.
The General Directorate for Tourism is developing a new strategy for the business events sector. The impact of the health crisis has intensified and accelerated existing trends, such as digitalisation and hybrid and virtual events. The aim is to map the state of the sector at the national level and to take stock of the initial effects of the measures already implemented while identifying major emerging trends at the international level to draw up a long-term policy for the business events sector.
In this context, a new tourism strategy with the central theme “Humans, regions and economy: value-driven tourism as an active driver for more quality of life and residence” was developed. It focuses on three objectives: improving the quality of life, the visitor experience and the reinforcement of the economy.
Therefore, six fields of action have been defined. First, the General Directorate for Tourism intends to provide a modern offer rich in experiences predominantly in active, cultural and gastronomic tourism. Second, it aims to develop attractive and resilient tourist businesses. Third, it aims to ensure that the stay in Luxembourg is sustainable and accessible for everyone. Fourth, inclusive and consumer-oriented digitalisation will be further developed. Fifth, trusting collaborations and strong networks between the different actors in the tourism industry are encouraged. Lastly, the General Directorate for Tourism aims for a targeted implementation of its objectives and a continuous collection of data.
“Vëlosummer” was first launched in the summer of 2020 and has since become a regular fixture. Each year, municipalities, Regional Offices for Tourism, and other interested parties submit proposals for scenic bike tours that highlight Luxembourg’s tourist assets. Co-operation with visitor attractions and hospitality establishments along bike routes is also recommended.
Luxembourg analyses the feasibility of the various proposed routes submitted in close co-operation with the Regional Offices for Tourism and the Road Administration to develop a coherent cycle route concept for Vëlosummer. During the summer, road sections throughout the country are reserved for cyclists, providing a unique opportunity. Some routes are reserved for cyclists at weekends, while others are reserved for the whole month of August. To help residents and tourists prepare their route, a map highlighting closed roads and illustrating cycle routes is produced in co-operation with the association ProVelo. For stays of at least two nights in two different accommodation establishments, a luggage service allowed cyclists to have their luggage delivered free of charge from one accommodation to the next.