Oktoberfest has brought a tremendous economic boom to the local economy, depositing over 1.25 billion euros in Munich's GDP yearly. This festival is celebrated wholeheartedly in different parts of the world as well. China, the USA, Brazil, and many other big names are venues for Beerfest with their cultural twist each year. This colossal event has brought much gain apart from entertainment to all its hosts. Oktoberfest has impacted the global economy by opening new job positions, exchanging goods, and creating a positive image of the host country. For a reason, other countries have welcomed “Wiesn” into their homeland!
Impact of Oktoberfest on German Economy
The 1.25 billion Euros generated from Wiesn contributed 2% to Munich's GDP in 2023. All this fiscal contribution comes from different industries, like hospitality, transportation, food, and local goods. Approximately 7.2 million Wiesn attendees spent almost €442 million on the fairgrounds. Over the 16-18 days of festivities, each person spent an average of €70.22, according to the City of Munich Department of Labor and Economic Development.
Roughly €1.25 billion was used to buy drinks, food, and rides. Attendees outside Munich spent almost EUR 505 million on accommodation alone, contributing to a considerable revenue increase for the hospitality industry. Due to the warm weather, the sale of non-alcoholic beverages within and outside Oktoberfest beer tents increased by 50% in 2023 compared to the previous years. Other than this, 8,000 permanent and 5,000 temporary jobs are created every year because of WIesn.
Financial Impact of Wiesn on Different Countries
Oktoberfest brings in big numbers in terms of the financial returns to the host countries. Some of the figures include;
- According to the Economics Department at the University of Wisconsin research, during Oktoberfest in 2014, the annual Beerfest in La Crosse generated a total annual economic impact of $15 million.
- State and Local Governmental bodies of Wisconsin received $1.17 million in tax.
- According to a study on the economic impact of Oktoberfest done in 2022, Kitchener-Waterloo Beerfest generated over $5.4 million in economic benefit to the Waterloo Region.
- Kitchener Waterloo tourism industry generated $6.7 million due to the Wiesn.
- The local restaurants and hotels generated $4 million during the Kitchener Waterloo Wiesn.
- Over $1.9 million in tax revenue was generated from the Oktoberfest Kitchener Waterloo.
- Oktoberfest Cincinnati generates tens of millions of dollars in revenue after covid.
Other Implications of Wiesn Around the Globe
Apart from the financial favors, Oktoberfest globally in its host country has benefited them in several ways. These socio-economic benefits can not be ignored.
Creation of New Jobs
One of Oktoberfest's most significant global impacts is on employment. Wiesn creates new positions in the hospitality and tourism industry. Hotels, restaurants, bars, and event venues see a significant rise in business during the Beerfest. This leads to an efflux in job openings. Oktoberfest provides employment opportunities across various roles and skill levels, from waitstaff and bartenders to hotel staff and event organizers. Though smaller in scale, these local celebrations still contribute to job creation within their respective communities.
In Wisconsin alone, the festival creates 200 new jobs every fall during the Oktoberfest season. The Kitchener Waterloo Oktoberfest creates 59 full-year jobs. Oktoberfest Cincinnati is one of the biggest beer fests outside Munich, with half a million people visiting the venue annually, creating as many as 3000 new jobs yearly.
Tax Revenue Generated from Wiesn
The global tax revenue generated from Oktoberfest celebrations varies depending on factors such as the scale of the event, the host city's tax policies, and the overall economic climate. Governments reap substantial financial benefits from this cultural extravaganza. $1.9 million is generated annually by the local and state bodies of Kitchener-Waterloo in the form of tax. Wisconsin generated $1 million in tax revenue.
Sale of the Local Goods
The event organizer of Cincinnati Oktoberfest states, “consumption of 87,542 metts, 80,500 bratwurst, 64,000 sauerkraut balls, and lots and lots of beer.” Local bakeries, butchers, and specialty food stores display traditional delicacies, from freshly baked pretzels to savory sausages and hearty stews. The sales of these Bavarian dishes skyrocket during the Wiesn, benefiting local traders. Oktoberfest beer sale is another thing the sellers leverage from.
“The big takeaway we saw is that Oktoberfest is no longer limited to German pubs, and more bars and restaurants should be taking advantage of this two-week festival and pushing beer specials to capture more sales,” said Layne Cox, Union’s chief marketing officer, in a statement. “With the price of Oktoberfest brews being higher than other beers, this is a big sales opportunity that many operators should capitalize on.”
Promoting Host’s Soft Image
Though this aspect may not impact the global economy directly, all the nations celebrating the German heritage with open arms are considered welcoming. With Oktoberfest, the host states get to present their image and help them in trade with the German nation as well as globally. Annually, Oktoberfest gives the locals a chance to present their food, beverages, and culture along with German traditions.