Berliners still remember the famous phrase, which became a veritable slogan, “Berlin is poor but sexy.” More than two decades after then-mayor Klaus Wowereit uttered that phrase, the German capital remains mired in an economic crisis, registering a new record debt of nearly €76 billion this year. But the big question is: is it still attractive, or is it simply poor?
If we look at tourist figures, Berlin has not yet recovered from the decline during the COVID-19 pandemic. Specifically, it has attracted fewer visitors so far this year than in previous years. According to the Berlin Statistical Office, almost 9.2 million tourists visited the city in the first nine months of 2025. This represents a 3.5% decrease compared to the same period last year. Before the pandemic, Berlin enjoyed very high numbers, with 14 million visitors in 2019. “I would say that tourism has stagnated at the moment,” explains Burkhard Kieker, CEO of Visit Berlin, the official tourism portal. He points out, however, that Berlin remains among the three or four most visited cities in Europe, along with London, Paris, and Rome, with 12.7 million visitors last year. In his opinion, this is not an isolated case, as London and New York are also struggling to return to pre-COVID figures. “It’s a bit like with Volkswagen. If Volkswagen sells half a million fewer cars in a year, it’s still the world’s largest car manufacturer (in terms of revenue), and the same is true for Berlin,” Kieker remarks.
However, the Brandenburg Gate and legendary clubs like the iconic Berghain don’t seem to be a powerful enough draw at a time of economic uncertainty. More than half of Berlin’s tourists are German, and they are known for their cautious spending. Furthermore, accommodation and food prices have also risen. Berlin has become 20% more expensive since 2019. But this isn’t an isolated case. Everything costs more.
What’s really taking its toll on Berlin and the rest of Germany’s cities is the decline in low-cost flights, something the hospitality and food sectors are warning about. Last year’s increase in air traffic tax has led many airlines to rethink their strategy in the country. Flying to Berlin for a weekend getaway, as was common before, is now too expensive for many people, who are opting for other destinations. “We see in the booking systems how many people are searching for flights to Berlin, and along with Italy, Spain is the country with the highest demand for flights to the German capital. But in the end, people aren’t booking because perhaps the flights are too expensive,” Kieker reflects.
The airport problem
Marcel Weber, president of the Clubcommission association, which works to preserve Berlin’s famous nightlife, sees it the same way. “The airport is a big problem in Berlin. It’s no longer as easy to get here by plane as it was before the coronavirus,” he says. “Berlin is still the place people want to go, the landmark. That’s still there, but we also have the task of preserving it.” For now, the government has just announced that it wants to reduce the tax that makes airfares more expensive starting July 1, 2026.
The bohemian and cultural atmosphere remains, despite the Berlin government’s budget cuts. Few places can boast of having three opera houses. But the city is constantly transforming: legendary clubs like Watergate are closing their doors, unable to cope with rising costs and declining tourism, and the squats that so defined the cityscape after the fall of the Berlin Wall in 1989 have been disappearing due to real estate pressure and speculation. For Kieker, this evolution is not unusual. “Berlin is a city with many historical scars. And I think that, as we know from market research, continues to be very interesting and attractive to people, as does the fact that it remains a very tolerant and open city,” he argues.
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