Germany - background market data

Population - 81 million, 16 million of whom were citizens of the former DDR. Language German. Boat ownership per capita estimated at around 1:231

Currency Euro (E): UK£1=E1.495, US$1=E0.811. The euro has strengthened over the past year, putting pressure on those exporting outside the euro zone, but making life easier for importers.

Government & Economy - Germany is still in the grips of economic despair. The financial burden of reunification since the early 1990s has seemingly proved too much for the country. Chancellor Gerhard Schr–der, leading his ëred-greení coalition of Social Democrats and environmental Greens, only just managed to hold on to power following a wafer-thin margin in the September 2002 elections. There has been little to buoy his position since. Unemployment remains the biggest single issue. It is close to the five million mark or 12 per cent of the working population. All this contributes to a too-high welfare bill and the need for high taxation.

The economy has grown by more than two per cent in only two years since 1992. In 2003, growth is estimated to have reached only 0.7 per cent, while in 2002 it grew by just 0.2 per cent and just 0.2 per cent the year before that. And the forecasts for 2004 are little better.

At least inflation and interest rates are both low.

Boating Geography - Germany's coast in the Baltic Sea and the North Sea around the Frisian Islands have always been good a boating environment. Now the former East German coastline effectively doubles the delight: a beautiful coastline dubbed a potential 'Solent of the Baltic'. Inland there are also numerous waterways and lakes, again particularly so it the east around Berlin. In the south are the big Bavarian lakes such as the internationally bordered Bodensee (Lake Constance), Europe's largest inland boating location

Boat Park - Estimated at 750,000, of which 150,000 or so are sailboats. With a German population of 81 million that gives a per capita boat-ownership figure of 1:108.

Restrictions - Beyond a still-ailing national economy, other factors at play in Germany that act to dampen boating demand include the long-established boat-licensing requirement and the strong ëgreení movement. The latter continues to win boating bans, curbs or speed restrictions on many waterways ó and such things are a big turn off as Germans generally like power and speed. A change a few years ago in legislation at least boosted the inland charter market, as now no licenses are required for that activity.

At least VAT or BTW in the country is modest at just 16 per cent.

Industry Bodies (2): DBSV, St Petersburger Strasse 1, D-20355 Hamburg, Germany. Tel: +49 40 30 70 67 90. Fax: +49 40 34 42 27. E-Mail: info@dbsv.de. Website: www.dbsv.de. Contact: Secretary-general, Claus-Ehlert Meyer. BWVS, Postfach 25 03 70, D-50519 Koln, Germany. Tel: +49 221 595710. Fax: +49 221 5957110. E-Mail: info@bwvs.de. Website: www.bwvs.de. Contact: Secretary-general, J¸rgen Tracht Both ICOMIA member organisations with over 1,100 member companies

Key Boat Shows (4) - D¸sseldorf Boot, the world's largest boat show. Held annually in January. Normally around 1,500 exhibitors, 400,000-plus visitors - Interboot, Friedrichshafen on Lake Bodensee, the 'Bavarian' show. Held annually in September. Normally around 600 exhibitors, 100,000 visitors - Hanseboot, Hamburg, the northern Europe show. Held annually in October. Normally around 900 exhibitors and more than 150,000 visitors - Berlin International Boat Show. Held annually in November. Normally around 400 exhibitors, almost 60,000 visitors

Next IBI German Business Report appears in March/April 2005 issue