In 2001, Germany's city of Salzburg created Tourismus Salzburg GmbH (TSG), a tourism authority run as a private company. This followed a period of poor results for the visitor business.

After five years, TSG is satisfied with results. Even though growth is not fast, any growth is considered good. Overnights have grown every year, reaching 1.88mn (up 13.9% over five years). Likewise, visitor arrivals, reaching 1.05mn (up 17.4% over five years).

A more pro-active marketing policy produced results, says TSG. It has increased visitor revenues every year, despite the steady reduction of the city's financial support.

Among new marketing initiatives, Salzburg built up MICE activities, helped low-fare-airlines with marketing, and targetted new markets such as Central Europe, China, and India. The TSG also encouraged higher-spending tourists to come to town.

In 2005, 64% of all overnights were recorded in 4- and 5-star hotels compared to 59% in 2000. And hotel occupancy reached 48% compared to 44% in 2000. Again, although some of these results seem low, TSG and Salzburg are pleased to see growth.

Another important step is the development of a new visitor strategy - up to 2011. This will look at new ways to protect Salzburg's old city from overcrowding by visitors during peak seasons. TSG estimates that there are also 5-7mn day visitors in a year.