Money Buzz! Europa

Category: Vienna

  • Overnight stays in Vienna fell by 97.5% in May to only 39.000 people

    Overnight stays in Vienna fell by 97.5% in May to only 39.000 people

    Overnight stays in Vienna fell by 97.5% to 39,000, while arrivals fell by 98.1% to 14,000 in May 2020.

    From January to May, 2.603.000 overnight stays were counted, a decrease of 59.3%.

    In Austria, the ban on tourist accommodation was in force until 28 May.

    Vienna’s accommodation establishments had 39.000 overnight stays in May, 97.5% less than in the same month of the previous year, about half of which came from Austria.

    The average occupancy of hotel beds fell to 4.5% (05/2019: 65.2%), those of the rooms to around 6% (05/2019: around 84%).

    A total of around 25.000 hotel beds were available in Vienna in May 2020, around 62% less than in the same month of the previous year.

    The net overnight turnover of Vienna’s accommodation establishments fell by 94.9% to EUR 4,869,000 in April – data for May are not yet available.

    From January to April, the companies generated EUR 128,523,000, down 51.2% compared to the corresponding period in 2019.

  • Inflation decreased to 0.7% in May 2020 in Austria

    Inflation decreased to 0.7% in May 2020 in Austria

    In May 2020, the inflation rate was 0.7%, as Statistics Austria reports (April 2020: 1.5%). Significantly lower prices for fuels were mainly responsible for the decrease of the May inflation rate.

    Moreover, the price increases for food diminished and garments became cheaper.

    “Housing, water and energy” (+2.2% compared to May 2019) remained the most important price driver.

    The index level of the consumer price index 2015 (CPI 2015) was 107.4 in May 2020. Compared to the previous month, the average price level decreased by 0.6%.

  • 62 Kaufhof stores will be closed

    62 Kaufhof stores will be closed

    Heute writes that at least 62 Kaufhof stores will be closed. This means that 6.000 full-time jobs will be affected.

    It is not yet clear which branches are affected. Originally there was even talk that 80 of the 170 Kaufhof department stores would be closed.

    Galeria Karstadt Kaufhof is part of the Signa Group of Tyrolean investor René Benko. Benko is said to have kept the company afloat with 140 million as rents have been suspended. Negotiations were also held with banks for loans.

    However, no agreement was reached and a protective shield procedure was initiated at the beginning of April.

  • Viola Park, a new and modern neighborhood near Generali Arena

    Viola Park, a new and modern neighborhood near Generali Arena

    After the redesign of the Austria Vienna’s stadium from 2016 to 2018 the surrounding area is now being upgraded and re-used.

    On an area of almost six hectares, the new, mixed city quarter Viola Park is being built right next to the stadium.

    WSE Wiener Standortentwicklung GmbH, a company of Wien Holding, is responsible for the sub-area of approx. 3.5 hectares.

    Viola Park will have a gymnasium, a nursing and retirement home, two parks with a total area of 12,000 square meteres as well as apartments and local utilities. Between the planned buildings there will be many open spaces for the residents and the users as well as for the surrounding population.

    The surrounding area will be integrated into the new district with a close-meshed network of paths between the various open spaces and the connection to higher-level routes.

    Two parks with public passage and cross-building children’s and youth playgrounds invite you to linger. Roof and facade greening ensure good cooling and even more quality of stay.

    Energy-efficient and mobile

    The future residents and users of the buildings will be offered numerous environmentally friendly mobility offers with sufficient bicycle parking facilities in high quality, space for cargo bikes and wheel repair points on every construction site, car-sharing offers, electric filling stations and a multi-site garage concept.

    District heating and/or alternative and local energy sources such as heat exchangers for cooling, compact structures and the use of LED technology ensure energy-efficient operation of the buildings.

  • Electricity from braking energy illuminates subway stations in Vienna

    Electricity from braking energy illuminates subway stations in Vienna

    After the successful pilot trial started in 2018, a second inverter system was put into operation at the U1 station Altes Landgut.

    There are two ”Brake Energy” plants: one in the U2 station Hardeggasse and one in the U1 station Altes Landgut.

    Data show that these power plants can “brake” around 3 gigawatt hours of electricity per year. This corresponds to the electricity consumption of an average of 720 households and saves around 400 tons of CO2.

    How the subways function as small power plants

    It happens thousands of times a day: whenever a subway stops in a station, braking energy is released.

    Much of the energy generated is re-fed and drives other approaching trains. But what to do if there is no train in the station at the same time?

    Until a few years ago, the resulting energy remained unused and was converted into heat.

    Thanks to the “Brake Energy” project, however, this energy can be recycled: If there is no other train in the station, the excess braking energy is fed into the 20kV alternating current network of the Vienna lines.

    Escalators, elevators and lighting are supplied with recycled electricity in stations.

    Next plant planned for U4 station Ober St. Veit

    “In the future, four more plants are to be built. The next plant is planned for 2021 at the U4 station Ober St. Veit,” announces Günter Steinbauer, Managing Director of Wiener Linien.

    One third of Vienna’s rail vehicles run with CO2-free electricity

    Already one third of Vienna’s rail vehicles are powered by recycled electricity.

    As a pilot project, photovoltaic films were installed for the first time at the Ottakring station in autumn 2019, which supplies 50 percent of the entire station with solar power at peak times.

    Thanks to the resource-saving use of energy, the Vienna lines are responsible for only one percent of Vienna’s CO2 emissions.

  • Vienna Naschmarkt flea market reopened

    Vienna Naschmarkt flea market reopened

    At approximately 7.000 m2 the flea market next to Naschmarkt reopened on June 13. Vendors can sell again art objects, second-hand household goods, literature and other antiques.

    In order to reopen the market office had to implement various safety measures.

    These include greater safety distances between the stands. Under normal conditions there are a total of 474 sales outlets at the flea market, with 222 market places for the old goods trade.

    Now, a maximum of 198 seats are currently available for vendors on the flea market area.

  • Austrian Government makes beer, wine and schnitzel cheaper

    Austrian Government makes beer, wine and schnitzel cheaper

    Austrian Government announced that the sales tax (VAT) on food (from 10%) and beverages (from 20%) is cut to a uniform 5%, Heute writes.

    Previously, the government had only decided to ease the burden on soft drinks. It was said at the time that a reduction was not possible due to EU requirements.

    Now beer, wine, cocktails and all other alcoholic beverages are also included in the tax cut.

    The tax cut is limited to the end of the year and will apply from July 1st. The relief volume is expected to be EUR 700 million.

    The temporary reduction of VAT to 5 percent is also planned for newspapers and other periodicals, as well as books and for visiting museums, cinemas or music events.

  • Austrian Airlines receives financial aid from the Federal Government

    Austrian Airlines receives financial aid from the Federal Government

    The Austrian Federal Government, Lufthansa and Austrian Airlines have reached an agreement on the cornerstones of a EUR 600 million coronavirus rescue package for the national network carrier Austrian Airlines.

    The financial assistance is designed to support efforts to sustainably safeguard Vienna as an aviation hub in the long term, including its flight connections to Central and Eastern Europe (CEE) and to long-haul destinations.

    According to the Austrian Economic Chambers, EUR 2.7 billion in domestic value creation, 17,500 jobs and EUR 1 billion in taxes and duties are linked to Austrian Airlines and its Vienna flight hub.

    The Republic of Austria will contribute EUR 150 million in financial assistance

    The Republic of Austria will contribute EUR 150 million in financial assistance to cover the losses incurred as a result of the COVID-19 crisis.

    In return, the Austrian Federal Government has received long-term, binding commitments to the Vienna aviation hub linked to strict ecological requirements.

    The entire financing package is dependent on state aid for Lufthansa in Germany, the approval of all corporate bodies and the consent of the EU Commission.

    Requirements with a focus on sustainability were specified

    • Austrian Airlines will shift passenger traffic to the railways on short-haul flights inasmuch as an adequate infrastructure is available and direct accessibility to Vienna Airport is ensured based on a travel time of considerably less than three hours.
    • The objective is also to make sure that the airports in Austria’s provincial capitals continue to be connected to a Lufthansa flight hub.
    • CO₂ emissions within Austria should be cut in half by 2030.
    • Austrian Airlines has pledged to increase jet fuel efficiency by 1.5 percent annually and to reduce average CO₂ emissions per 100 passenger kilometers of the entire Austrian Airlines fleet from 9.55 kg to 8.5 kg by 2030.
    • CO₂ emissions are to be reduced by 30 percent by the year 2030 from the comparable level of 2005.

    EUR 600 million required financing for Austrian Airlines

    Austrian Airlines originally reported liquidity requirements amounting to EUR 767 million to the COVID-19 financing agency of the Austrian Federal Government (COVID19-Finanzierungsagentur des Bundes GmbH, COFAG in short).

    The earlier restart of flight operations and the successful implementation of measures by the airline’s management to secure liquidity serve as the basis for the lower amount of EUR 600 million in required financing.

    This sum was also confirmed by the auditor PwC.

    EUR 300 million will be made available as loans granted via bank financing

    EUR 300 million will be made available as loans granted via bank financing. Another EUR 300 million provided as state aid and by Lufthansa will strengthen the airline’s equity capital.

    The bank loans totaling EUR 300 million are to be made available by an Austrian banking consortium consisting of Erste Group, Raiffeisenbank International, BAWAG and possibly further banks, with the Erste Group also serving as the overall coordinator.

    A guarantee for 90 percent of the loans will be assumed by the Republic of Austria via COFAG after the required evaluation steps are carried out and all necessary approvals have been granted.

    Another significant part of the coronavirus rescue package will come from the airline’s employees.

    The close to 7,000 employees will make an accumulated crisis contribution of about EUR 300 million by taking salary cuts.

    The more than 1,000 business partners and suppliers of Austrian Airlines will also make a substantial contribution.

    Contract volume could be reduced by more than EUR 150 million, partially within the context of newly concluded agreements, in part also by means of renunciation.

  • Austrian Airlines to resume long-haul flights in July

    Austrian Airlines to resume long-haul flights in July

    • Bangkok, Chicago, New York and Washington back in the program from July;
    • Flights to other European cities and various Greek holiday destinations to resume.

    From July onwards, Austrian Airlines aircraft will take off to regular long-haul flights for the first time since mid-March.

    Bangkok, Chicago, New York (Newark) and Washington will then be available with up to three weekly flights. The first long-haul aircraft will take off for New York at 10:15 A.M. on 1 July.

    New destinations in Europe

    In Europe, the following destinations will be added to the almost 40 destinations already announced: Bologna, Florence, Moscow, Podgorica, Rome, Sibiu, Venice and Zagreb.

    Cairo will be added to the Middle East portfolio.

    In addition, Austrian Airlines will offer the following holiday charters as of July: Chania, Corfu, Heraklion, Karpathos, Kos, Rhodes, Santorini and Zakynthos.

    Keflavik is also back in the program as a charter destination.

  • TUI hotel brands resume operations in Austria

    TUI hotel brands resume operations in Austria

    • Hotels will welcome their first guests in June;
    • TUI Blue Montafon to open in July, earlier than planned.

    In Austria, the hotels of the TUI brands are ready for a rapid resumption of operations in summer. In a first step, the hotels will open for guests from Austria, but as soon as the authorities give the green light for cross-border travel, they will again welcome international holidaymakers from all over Europe.

    TUI is present in Austria with three hotels of the lifestyle brand TUI Blue and three Robinson Clubs.

    New TUI Blue Montafon hotel opens on July 24

    Among the six hotels there is the new TUI Blue Montafon, which will open on 24 July.

    The new lifestyle hotel in the area of Schruns-Tschagguns appeals to activity-oriented holidaymakers and mountain fans.

    TUI Blue Schladming hotel, the first to open

    Earlier, on the 10th of June TUI Blue Schladming will be the first hotel to reopen. The two Robinson Clubs Amadé (19 June) and Landskron (20 June) will follow. Also in June, the TUI Blue Fieberbrunn (26 June) and the Robinson Club Schlanitzen Alm (27 June) will open again for their guests.

    The new TUI Blue Montafon will follow in July.

  • Austria: Decline in turnover for service enterprises (-5.5%) and trade (-4.1%)

    Austria: Decline in turnover for service enterprises (-5.5%) and trade (-4.1%)

    In the first quarter of 2020, the turnover of Austrian service enterprises decreased by 5.5% compared to the same quarter of the previous year, as Statistics Austria reports.

    The main reason for this decline is the shutdown of a large part of the enterprises as part of the measures to contain the corona pandemic.

    In the first quarter of 2020, Austrian retailers recorded a nominal sales decline of 4.1%, resulting in a 4.2% decrease in sales volume compared to the same quarter of the previous year.

    The smallest losses (-0.9% in nominal terms or -1.9% in real terms) were recorded in the retail trade, followed by wholesale trade with a decrease in sales volume of 2.5%. Adjusted for inflation, this represents a decrease of 1.4%.

    The motor trade recorded a sharp decline in sales compared to the first quarter of 2019, with -16.4% in nominal terms and -18.3% in real terms, in line with the available registration figures.

  • 266 international companies relocated to Vienna in 2019

    266 international companies relocated to Vienna in 2019

    In 2019, 266 international companies relocated to Vienna, a record number for the eighth time in a row, latest City Hall press release shows.

    Vienna’s mayor Michael Ludwig knows the reasons for this: “Stability and security are the factors with which our city is internationally associated despite all the economic challenges posed by the Corona crisis – a significant asset, especially in times of crisis. This has a positive impact on the demand of international companies.”

    “The new companies put 731 million euros in investments in Vienna in 2019 and created 1,972 new jobs,” sums up Economic City Councilor Peter Hanke.

    In 2018, the rate was EUR 231 million. The investment volume was thus more than tripled.

    Germany, the biggest investor

    Behind Germany with 61 projects, the United States came second in the list of the ten most important countries of origin with 25 companies located, doubling the figure by two and a half times compared to 2018. Switzerland took third place.

    Two examples from the banking sector show how diverse is the range of international companies moving to Vienna.

    In 2019, the Industrial and Commercial Bank of China (ICBC), the world’s largest bank, opened a branch in Vienna, as did the start-up N26, which claims to become the world’s largest digital bank.