The University of Applied Sciences Kufstein Tirol and Its Importance for the City of Kufstein and the State of Tyrol
The value-added analysis, conducted by FH Kufstein Tirol in collaboration with the Society for Applied Economic Research (GAW), demonstrates the regional and economic importance of the university for the state of Tyrol and the city of Kufstein. The benefits stem from both the university's operations and the expenditures of its students. For the Economic Impact Study, 532 students were surveyed in spring 2023 regarding their living expenses. The value-adding expenses of the university from the past three years, excluding construction activities, were also included in the analysis. The total expenditures also consider the demand impulses with direct, indirect, and induced effects.
"Over the past 25 years, FH Kufstein Tirol has established itself as a vital institution in the Tyrolean educational landscape. Our significance is not limited to the state but also radiates beyond its borders," explains the university's managing director, Prof. (FH) Dr. Thomas Madritsch. "Our approximately 2,200 students include incoming students from 50 different countries, affiliated with 215 international partner universities."
Results for the City of Kufstein
Considering only the university's ongoing expenses, employees residing in Kufstein, and students living in Kufstein for their studies, the city benefits from a value creation of 19 million euros, resulting in 238 jobs. "It's essential for the acceptance of educational institutions to clarify for our politicians and our citizens the advantages the city of Kufstein derives from the university's location in our community," says the mayor of Kufstein, Mag. Martin Krumschnabel.
Results for the State of Tyrol
In Tyrol, the university's operations and students' expenditures contribute to a gross regional product of 38.6 million euros annually, creating 441 jobs and generating income of 16.8 million euros. The wide regional dispersion of economic performance in many sectors comes from direct expenditures, the contributions of suppliers, and value-added providers. It also accounts for the so-called induced effects of spending on consumption and investments, further amplifying local value creation.
"The achievements of our Tyrolean universities, where students receive practical and high-quality education, are commendable. The value-added analysis of FH Kufstein Tirol underscores the regional economic significance of universities for the regions and all of Tyrol. The universities, students, and tomorrow's sought-after professionals contribute to reinforcing Tyrol as a prestigious science and business location, even beyond its borders," emphasizes the State Councilor for Science, MMag. Dr. Cornelia Hagele.
Results for the Country of Austria
Although the ongoing expenses of FH Kufstein Tirol and its students naturally concentrate in Tyrol, they also have significance far beyond Tyrol's borders due to economic interconnections within Austria and induced effects. Measured by gross value-added, this significance for other Austrian federal states amounts to 9.2 million euros, leading to a total value of 47.8 million euros across Austria. Besides companies and private households, public budgets also benefit from ongoing operations in the form of taxes, levies, and social security contributions.
More challenging to estimate than the determined operational effects, and therefore not considered in the study, are the productivity effects of FH Kufstein Tirol. These effects bolster the local economy through increased productivity of highly qualified workers and enhanced innovation through collaborations and knowledge transfers between the University of Applied Sciences and businesses. Thus, the Kufstein location and the Tyrolean lowlands benefit in two ways from the presence of the educational institution locally.