Alexander Wendt

Lost Luster: The Inexorable Decline of Germany’s Capital

Berlin’s only industry is collapsing: tourism. Foreign visitors in particular are staying away. An increasingly litter-strewn and dangerous city simply has too little to offer.

“Does nobody want to come to Berlin any more?” worries the German weekly Die Zeit. “Who would be kind enough to visit Berlin?” asks the Munich-based Süddeutsche Zeitung. Both newspapers lean left and are generally sympathetic to a city where the neo-communist Left Party could soon be in government. If even friendly journalists are diagnosing a Berlin crisis, things must be pretty bad.

And they are. For several years now, the German capital’s chief industry has been in unprecedented decline. Industry in Berlin? Yes, there is such a thing, only it looks rather different from elsewhere. In the absence of major manufacturers, tourism serves as the city’s real money-making machine – a kind of substitute industry. Just over one in ten employees works in the sector, and it generates more value than the capital’s financial industry – at least for now.

The visitors are staying away, especially those from abroad. Tourists from the UK traditionally topped the rankings. Britons still fly in, but no longer in the numbers they once did. Hotel occupancy currently stands at 52.8%, even though many establishments have already begun cutting their prices. In Paris, by comparison, the figure is 79%.

Tourist numbers in the German capital are now falling year after year, moving ever further from pre-Covid levels. In 2019, 14 million visitors were still drawn to the Spree. In the first half of 2026, only 5.9 million considered Berlin worth the trip.

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