Focus on the provincial capitals
Provincial capitals: The growing importance of tourism
Bregenz
Developments in the inner city retail locations of the largest provincial capitals have differed widely in recent times. But one thing they have in com- mon is the growing importance of tourism-related turnover.
Innsbruck
The development of the retail markets in the Austrian provincial capitals reflects the general trend towards concentration on a limited number of stronger locations. The markets in larger cities that receive greater attention from retailers continue to outperform the market as a whole. This applies to vacancies and rent levels as well as the supply of space. Salzburg Festival One particularly positive case at the present time is Salzburg. The vacancy rate in this festival city has dropped by nearly half and, according to S+M City Retail Austria, currently equals only 3.1 per cent. In the top locations, vacancies have fallen by slightly more than half and are now at a nearly negligible 1.7 per cent. The combination of this upward trend and the positive development of tourism – with overnight stays that have already topped the pre-corona level – is apparent, and the declines in the key fashion segment have been more than offset by branches like
gastronomy which are heavily dependent on tourism.
less than one to 5.5 percentage points and is now higher than the 1.9 increase to 5.1 percentage points for the entire inner city. A plus point, in contrast, is the end of the steady decline in space during recent years. With a minimal increase of 400 sqm to 169,100 sqm, Graz has consolidated its position as Austria’s number two after Vienna. The outlook for future development is linked to the economic situation in the region, which is heavily dependent on the crisis-torn automotive sector. Its importance for the future of retail trade and gastronomy is, at least over the short- term, more important than positive local measures to strengthen the location such as a new tram line near the Neutorgasse and the new sidewalks and cycle paths planned for completion this year. Further decline in vacancies for Linz Vacancy trends in the capital city of Upper Austria have recently been generally positive. According to S+M City Retail
The highly anticipated expansion of the Europark (currently 8,400 sqm to 50,700 sqm of selling space) is scheduled to open this year. Since this facility has a substan- tially larger catchment area than the city of Salzburg, a massive impact on the city centre is not expected. Any effects would also be moderated by the absence of a shopping mall in the inner city and the lack of an impact on the most important tourism revenues. Bad news for the city, in contrast, is the at least preliminary cancellation of the S-Link regional railway. It would have had the potential to entice consumers from the surrounding cities and communities to return to the city centre. Weak phase in Graz After several very positive years, Graz has started to weaken. The vacancy rate at prime locations has risen sharply from
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