Salzburg’s economy has occupied pole position in Austria for many years. Domestic tourism largely contributes to this success. Nevertheless, after initial major growth due to the opening of the borders with Eastern Europe, from 1994 Salzburg’s tourism also had to face losses in turnover and a decline in overnight stays. This was largely because of competition from cheap flights to “sun, sea and sand” destinations and the Austrian policy of the strong shilling which made some holiday-makers choose cheaper countries. Structural weaknesses, declining purchasing power and economic problems in the tourist-generating countries, for example, Germany, Belgium or the Netherlands and currency fluctuations in some countries exacerbated the falling trend. These losses could not be compensated by the positive evolution of the number of visitors arriving from Eastern Europe (e.g. visitors from Poland and the Czech Republic). Since 1998 rising figures in the number of visitors and overnight stays have been registered.