As is the case in many other countries with an advanced economy, Germany’sservice sector (i.e., trade, transport, banking, finance, and administration) is a leading employer. This is abundantly clear in urban centers throughout western Germany, with their concentration of retailing, banking, and insurance. The transformation of eastern Germany along these lines is in progress, and the sector’s importance has grown considerably there. For example, while the economies of most eastern and western German states were still dominated by manufacturing in the early 1990s, by the end of the decade a majority of states, and thecountry as a whole, had economies with a higher level of output by private firms providing services (even excepting trade and transport, which are categorized separately). In short, the German economy, for years one of the world’s most manufacturing-oriented economies, has become dominated by services. This is particularly well illustrated byBerlin, where manufacturing’s importance has declined sharply; indeed, the city has become an increasingly significant center for both public and private international and national service-sector institutions.

Although foreigntourism to Germany is substantial, receipts from German tourists abroadexceed the receipts from foreign visitors to the country. In comparison with many of its neighbors, Germany does not rely heavily on tourism for income. TheAlps and the Rhine and Moselle valleys are leading destinations, though urban areas (e.g., Frankfurt,Munich, and Berlin) also attract many visitors, and local festivals in places such asBayreuth also entice tourists. Tourism to eastern Germany, particularly to the beaches along theBaltic Sea, has increased significantly since unification.