Graz is experiencing a noticeable surge in visitors from the Austrian state of Kärnten, a trend directly linked to the recent opening of the Koralmbahn railway line. The improved rail connection is not just easing travel between the regions, but is likewise providing a significant boost to Graz’s economy, impacting retail, hospitality, and even attracting new business investment. Initial data suggests a substantial increase in foot traffic from Kärnten, signaling a positive shift for the Steiermark capital.
The Koralmbahn, a long-awaited infrastructure project, has demonstrably shortened travel times and increased accessibility, making Graz a more attractive destination for residents of Kärnten. This increased connectivity is translating into tangible economic benefits, according to city officials and business owners. The railway’s impact extends beyond tourism, with early indications of a growing interest in establishing businesses and expanding operations within the city limits.
Koralmbahn Fuels Tourism Increase
Elisa-Maria Steinberger, the City Manager of Graz, reported a significant uptick in visitors from Kärnten in the months of January and February. “In January, we saw 5,300 more visitors from Kärnten compared to the same period last year, and in February, that number rose to 4,700,” Steinberger stated. “When you speak with retailers, restaurateurs, and tourism professionals, it’s clear they’re noticing a definite increase in Kärntner visitors since the Koralmbahn opened.” This increase is particularly noteworthy given that January and February are traditionally slower months for tourism and retail activity.
The influx of visitors is particularly noticeable from the regions of Klagenfurt and Villach. Steinberger estimates a 25 percent increase in visitors from Kärnten compared to the previous year. This growth is fueling optimism among local businesses, who anticipate continued positive momentum throughout the year.
Graz’s Retail and Hospitality Sectors Benefit
The increased foot traffic isn’t simply translating into more sightseeing; it’s driving sales in Graz’s retail sector. “Graz offers a diverse range of retail options that you might not find in Klagenfurt,” Steinberger explained, highlighting the city’s appeal as a shopping destination. The city’s restaurants, cafes, and cultural attractions are also benefiting from the increased visitor numbers. The Koralmbahn is effectively expanding Graz’s catchment area, bringing in customers from a wider geographic region.
Attracting Investment and Talent
The positive economic impact extends beyond tourism and retail. Steinberger also noted an increase in business relocations, student enrollment, and startup activity in Graz. “We are incredibly well connected with Kärnten and are seeing a great deal of interest in establishing a presence here,” she said. The improved rail link is making Graz a more attractive location for companies looking to expand their reach and tap into a wider talent pool.
Currently, approximately 12 percent of commercial spaces in Styria remain vacant, according to ORF Steiermark. In Graz itself, the vacancy rate is slightly over 5 percent. While, foot traffic on the Grazer Herrengasse, a major shopping street, has declined by 16 percent since 2024, with visitors increasingly favoring areas like Kaiser-Josef-Platz and Lendplatz.
The Koralmbahn’s success story highlights the importance of infrastructure investment in driving regional economic growth. As the railway continues to facilitate easier travel and increased connectivity, Graz is poised to benefit from a sustained influx of visitors, businesses, and talent, solidifying its position as a key economic hub in Austria. The city will be closely monitoring visitor data and economic indicators in the coming months to assess the long-term impact of the Koralmbahn.
The next key data release regarding visitor numbers and economic impact is scheduled for September 2026, when the Styrian Chamber of Commerce will publish its mid-year economic report. We encourage readers to share their experiences and perspectives on the Koralmbahn’s impact on Graz in the comments below.
