EIB backs €18m Alpine tourism upgrade at Tyrol’s Zugspitze cable car and ski resort

Tiroler Zugspitzbahn operates the aerial cable car connecting Ehrwald to Zugspitze, Germany’s highest mountain at more than 2,900 metres, and runs the popular Ehrwalder Alm ski resort.

An €18 million investment by family-owned Tiroler Zugspitzbahn is bringing improvements to tourism infrastructure in Ehrwald, the Austrian town near the German border where visitors can take a cable car to the summit of Zugspitze. The project includes a better boarding area, underground parking and upgrades to ski slopes and snowmaking equipment, supported by €3.5 million in European Investment Bank financing through Hypo Tirol Bank.

An EIB team visited the western Austrian state of Tyrol today to see how the work is progressing, with EIB Vice-President Karl Nehammer joined by Tyrol Governor Anton Mattle. The visit put the focus on how European funding reaches regional businesses through local lenders and helps finance investments that shape the experience of visitors and the future of tourism destinations.

Better access and upgraded facilities for Alpine visitors

Tiroler Zugspitzbahn operates the aerial cable car connecting Ehrwald to Zugspitze, Germany's highest mountain at more than 2,900 metres, and runs the popular Ehrwalder Alm ski resort.

Its investment programme covers improvements to the cable-car boarding area and an underground car park with around 85 spaces, alongside work on ski slopes and snowmaking equipment. For the company, these upgrades are part of a longer-term effort to remain competitive and strengthen Ehrwald's appeal as a tourist destination.

"We are investing in the long-term development of our location," said Managing Director Franz Dengg. "Modern infrastructure, greater comfort for our guests and efficient operations are essential to this."

Dengg said a project of this scale requires both a long-term vision and suitable financing, adding that the company was pleased to undertake the investment with its financing partners.

European funding reaches businesses through a regional bank

The EIB's €3.5 million commitment comes through a loan to Hypo Tirol Bank, which channels the funding to the business. This arrangement allows the EIB to support individual investment projects through lenders that know their regional markets and customers.

"European financing must reach the places where businesses invest," Nehammer said.

He highlighted the need for reliable financing partners for small and medium-sized enterprises and mid-sized companies seeking to modernise their operations, strengthen their competitiveness and invest in their future.

"Tiroler Zugspitzbahn demonstrates how cooperation between the EIB and a regional bank can support concrete investments and contribute to the economic development of a region," he said.

These arrangements, known as intermediated loans, involve the EIB providing funding to partner banks, which lend it to eligible businesses. The banks bring their understanding of local conditions and corporate customers to the process, helping European financing reach projects across different regions and sectors, including tourism.

A €100 million partnership supports wider investment in Austria

The tourism project forms part of a €100 million financing partnership between the EIB and Hypo Tirol Bank, with each institution contributing €50 million. The partnership provides Austrian businesses with additional financing for growth, innovation and sustainable development.

"As Tyrol's regional bank, our role is to make financing opportunities available where investment takes place," said Markus Hildmann, Hypo Tirol Bank's Management Board Member responsible for market activities.

He said the cooperation combines European financing with the bank's regional expertise, helping businesses carry out their investment plans. Tiroler Zugspitzbahn, he added, provides a concrete example of how that relationship supports investments important to both individual companies and Tyrol's economic development.

For the cable-car and ski-resort operator, the financing supports a practical set of improvements: facilities designed around guest comfort, upgraded infrastructure and more efficient operations, all contributing to the long-term development of its Ehrwald location.