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Oktoberfest in Munich Means Doing Deals Between Beer, Bratwurst

By Simon Thiel

Sept. 19 (Bloomberg) -- For Mahesh Kumar, Bavarian beer isn't the only reason for an 11-hour flight from Delhi to Munich each fall. The Indian software developer says Oktoberfest, the world's biggest public festival, is a place to make money.

``The constant flow of beer and the relaxed atmosphere'' at the German gala helped the 36-year-old Kumar win a $4,500 order for a software database in 2003, he said in a phone interview. ``It was the first time I met somebody from the company face to face,'' said Kumar, who runs his own firm and declined to identify the German partner. ``We discussed the project while eating roast pork and two weeks later I got the nod.''

Munich's 172nd Oktoberfest, which started on Sept. 17 and runs for two weeks, will attract 6 million visitors who will spend almost 1 billion euros ($1.22 billion), or 1.5 percent of the city's annual gross domestic product. At the festival, a Bavarian tradition that celebrates local culture, visitors consume 5 million liters of beer, 480,000 chickens and 100 oxen, said Gabriele Papke, a spokeswoman for Munich's local council.

Munich-based companies from Siemens AG, Germany's largest engineering company, to Bayerische Motoren Werke AG, the world's biggest luxury carmaker, reserve tables at Oktoberfest and invite workers and customers to the festivities.

``At first it's really an overwhelming experience with the brass bands playing this very loud Bavarian oompah music and everybody dancing on the tables,'' says Svenja Op gen Oorth, 31, who runs a marketing communications agency in Munich. ``But then you realize that it's the perfect setting for business meetings and relationship-building events.''

The first Oktoberfest was held in 1810 to honor Bavarian Crown Prince Ludwig's marriage to Princess Therese von Sachsen- Hildburghausen. Munich citizens were invited to celebrate the event on fields in front of the city gates. This year, the event covers 104 acres, or the size of 50 soccer pitches.

`Massive Networking'

Op gen Oorth says that a business meeting at the Oktoberfest last year was ``essential'' to win an order to create a brochure for a customer in the software industry.

``Drinking beer, singing along the Bavarian tunes and discussing this project was a very fine combination,'' she says. ``Everybody had a good time and at the end of the evening my agency had the project in the bag. Almost all Munich companies organize big parties at the Oktoberfest and invite customers and business partners from all over the world.''

ProSiebenSat.1, Germany's biggest private broadcaster, uses the festival as ``an opportunity to strengthen the relationship with advertising customers and all kinds of business partners and also to entertain our employees,'' Munich-based spokeswoman Katja Pichler said in a phone interview.

`Enormous Influence'

In the first years, horse races were the only entertainment. The first carousel and two swings were then set up in 1818 and visitors quenched their thirst at small beer stands. In 1896, the stands were replaced by the first beer tents and halls, set up by local breweries.

The Oktoberfest this year has 14 festival halls and 50 smaller beer tents seating about 98,000 people. About 217 fairground attractions such as side-shows, carousels and roller coasters also compete for customers.

The event has ``an enormous influence on the economy of Munich and the surrounding area,'' said Papke. ``Hotels, cab drivers, part-time service workers: They all benefit during the Oktoberfest as many people are in a mood to spend money.''

Spending at Oktoberfest will total about 955 million euros, with 450 million euros on food, drinks and entertainment and 205 million euros for shopping in and around Munich, public transport and restaurants, Papke says. About 300 million euros are spent on hotel accommodation.

Waitress Work

Sabine Huber, a 36-year-old waitress, says she earns ``within two weeks what a waitress in a normal restaurant usually earns within two months.'' It presents an ``ideal opportunity to fill up my bank account in a short time.''

Wearing traditional Bavarian dresses known as ``Dirndls,'' waitresses carry about eight to 10 glasses at the same time, each filled with one liter of beer. One shift lasts at least 11 hours, she says.

``This is rather like a wild party with many drunks in crowded tents and people dancing enthusiastically on the tables,'' Huber says. ``For most people, the Oktoberfest is the best party in the world, but for some it is also extremely tough work.''

To contact the reporter on this story: Simon Thiel in Munich at sthiel1@bloomberg.net.

Last Updated: September 19, 2005 02:11 EDT

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