Every euro invested in the MVV generates almost four times its value: a study demonstrates the high economic and social value created by public transport in the Greater Munich area

Local public transport (ÖPNV*) within the Munich Transport and Tariff Association (MVV) is far more than just a transport service: it is a key economic factor for the entire region. This is shown by a recent study by MCube Consulting commissioned by MVV GmbH. According to the study, public transport in the MVV area generates an annual gross value added of around 5.6 billion euros – with annual operating costs of approximately 1.6 billion euros. This means that every euro invested yields an economic benefit of around 3.60 euros.

The study makes it clear that the social and economic benefits of public transport are often underestimated. In addition to direct effects on transport operators and their suppliers, public transport has a significant impact on other sectors of the economy in particular: the retail sector, tourism, the property market and commuter travel. Added to this are significant savings in external costs, for example through reduced environmental impact, lower accident-related costs and relief for transport infrastructure.

Public transport as the backbone of the regional labour market

The positive impact of public transport in the MVV area is particularly pronounced in tourism (value added for tourism through the MVV of around €900 million), retail (contribution to value added of around €300 million) and, above all, in commuter traffic. For commuters alone, the benefits of buses and trains are well above the national average. Public transport facilitates daily journeys between the city and the surrounding area and is therefore a key factor in the functioning of the regional labour market. Overall, the MVV contributes around eight per cent to total public transport value added in Germany in this category alone – despite representing a significantly smaller share of the population at 3.8%. This underlines the exceptional importance of public transport for the labour market in the Munich metropolitan region, even by national standards. The aggregate value added averages 5.6 billion euros per year, meaning that public transport makes a significant contribution to prosperity and regional economic output. This corresponds to roughly half of the total gross value added from tourism in the MVV area, or about three-quarters of the value added from retail in the same area.

High value added – but not a sure-fire success

At the same time, the study shows that this high value added is not a sure-fire success. It is the result of long-term investment, reliable funding and the continuous development of services. Without sustained political and financial support, the significant positive economic and social leverage of public transport for commuters, the retail sector and tourism would noticeably diminish in the medium to long term. The findings thus provide a robust, data-based foundation for further discussion on the financing and expansion of public transport in the MVV area. They make it clear that investment in public transport not only contributes to climate protection and quality of life, but above all offers an exceptionally favourable cost-benefit ratio of 1:3.6. This means that every euro invested in the operation of public transport generates almost four times the economic benefit. This positive ratio is evident to a comparable extent both in the city of Munich and in the surrounding districts. As a result, investment in buses and trains is also among the most economically profitable public investments in the region.

Full details of the study: Link to the study (PDF)

*Public transport always includes regional trains/local rail services, trams, underground and suburban railways, and city and regional buses